Report: Tampa, Miami lead the nation in luxury home sale price increases

The price for a luxury home in Tampa keeps growing — jumping 15.4% from last year.

That’s according to a new report from the real estate data firm Redfin, which found luxury sale prices rising in metro Tampa higher than the U.S. as a whole and trailing only Miami for the fastest growth nationally.

The South Florida metro, which was No. 1 on the list, saw its luxury home sale prices go up 18%. Nationally, the increase was 5.3%.

No. 3 on the list was Indianapolis, which saw a 12% increase, that was followed by Nassau County in New York at No. 4 with an 11.5% increase and Las Vegas at No. 5 with an 11.3% increase.

According to the Redfin report, the median sale price for a luxury home in Tampa for the three months ending in July was $1.64 million. In Miami it was $5.07 million and in West Palm Beach it was $4.52 million, 7.5% higher than a year ago.

The report’s authors say the state’s increasing luxury sales prices are driven by affluent buyers from New York and California who are “drawn to Florida for its favorable tax environment, warm weather and waterfront lifestyle.”

(Naples and much of Florida’s West Coast has seen similar dynamics but the report only looks at the 50 most populous metro markets in the country.)

Miami and West Palm Beach are particularly popular for the ultra-wealthy, including billionaire tech executives. Mark Zuckerberg of Meta recently paid $170 million for an estate on Indian Creek Island in Miami.

Another reason for the higher prices on luxury homes is tight inventory, the report’s authors write. The total number of homes for sale fell 18.1% year over year in Miami, the third-biggest decline in the U.S., and they fell 16.1% in Tampa.

Not all the housing sectors mirror the luxury market: according Redfin, prices for non-luxury homes in Miami fell 1.3% and remained mostly unchanged in Tampa, going up 0.3%.