Palm Beach Is Running Out of Mansions

Photo credit: Slim Aarons - Getty Images
Photo credit: Slim Aarons - Getty Images

Houston Florida, we have a MAJOR problem: There’s currently a shortage of mansions for sale in Palm Beach. That's right, the tony Florida town is seeing a major shortage in top-tier properties, due to the pandemic’s impact on the real estate market. So yes, you might have to put your plans for a multimillion dollar beach house on hold (*sigh*).

At the end of the second quarter in late June, just 25 dwellings were for sale in Palm Beach. And what’s more is the prices of these homes are now the highest they’ve ever been. Palm Beach’s real estate market is now nearly on-par with Manhattan’s, according to CNBC. The price-per-square-foot in Palm Beach is currently just above $1,500, while Manhattan’s is $1,545, according to the CEO of Miller Samuel, Jonathan Miller.

Presently, the average price of a single-family home in Palm Beach is $11.7 million, which is a 38% increase from last year, according to Douglas Eliman and Miller Samuel.

The reason for these soaring prices is the mass exodus of people who moved to Florida during the pandemic, including business executives and hedge fund owners.

“This is a whole reset of the market,” Miller told CNBC. “We’re now seeing $50 million transactions on almost a weekly basis. That’s a big change. And it appears to be sustainable.”

Despite this vast price increase, the number of single-family homes in Palm Beach that have sold in the second quarter jumped 90% in the past 12 months, leading to a shortage of abodes for sale here.

One Palm Beach mansion recently sold for $122.7 million, which is believed to be one of the most expensive home sales in the United States. Ryan Serhant from Million Dollar Listing New York represented the buyer.

Other parts of the country are experiencing home shortages as well, including Cape Cod and the Jersey Shore, according to The Wall Street Journal. Between being able to work from home and wanting to get more bang for your buck, escaping city life is certainly a priority in today’s market. If you need us, we’ll be browsing Zillow (even more than usual).

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