South Florida’s luxury real estate market is undergoing rapid change, with oceanfront condominiums facing intense pressures from new regulations and soaring costs, while single-family homes in prime locations continue to attract affluent buyers seeking second and third residences.
Lynne Gewant, a veteran broker with Coldwell Banker Realty specializing in Boca Raton and Highland Beach for more than two decades, describes the current market as uniquely complex. Her experience highlights how regulatory shifts, insurance concerns, and evolving buyer expectations are fundamentally altering one of Florida’s most sought-after coastal regions.
Gewant entered real estate out of necessity after managing medical practices with her former husband. Following a divorce and the 2008 market crash, she needed a new career. “The stock market crashed, and so did my income,” she recalls. “I had to figure out a new way to support myself.”
Her brother, a Fort Lauderdale broker, encouraged her to try real estate. Gewant’s approach was direct: “I wasn’t going to start working for somebody else after being my own boss.” Starting without a network, she built her business through relentless engagement. “I talk to everybody. That’s what you have to do when you’re in real estate. You have to put yourself out there.”
Her work ethic is uncompromising. “I take one day off a year. My phone is on for a minimum of 13 hours a day.” She rejects the idea of flexible schedules in luxury real estate: “Your hours are basically the hours that your customers want. If you want to make money and have your name out there, you need to work.”
Gewant’s focus on Highland Beach is rooted in its exclusivity and unique structure. “Highland Beach is probably my favorite parcel of land in South Florida. It’s a three-mile stretch with no traffic lights and only one commercial property,” she explains.
The town’s self-contained services – its own police, fire department, and water utility – create a sense of privacy. “It’s kind of like the Beverly Hills of South Florida,” she says. Most transactions in this enclave are cash purchases. “I would say 90% luxury. So mortgages really aren’t a thing for my people.”
The collapse of Champlain Towers South in Surfside in 2021 triggered sweeping changes for Florida condominiums. New state legislation now requires structural inspections and fully funded reserves for buildings over three stories within five miles of the coast.
“Condos are on sale. That’s just the bottom line,” Gewant says. Monthly HOA fees have often tripled to cover repairs and reserve requirements. “The HOA went from x to three times x, and it’s just about explaining it and letting them know this is why it happened. Is it ever going to come back down? No, it’s not going to come back down, unfortunately.”
Some buildings face extensive repairs – “Sea Ranch Club is missing the whole front of their building” – while others have needed only minor work. Gewant advises buyers to focus on buildings that have completed 40-year inspections and funded reserves: “At least then you know what your nut is.”
Inventory is rising. “On the coast, last time I checked it was 6.6 months of inventory. We’re still in a buyer’s market as far as oceanfront is going,” she notes.
Rising insurance premiums and hurricane risks have forced luxury buyers to rethink traditional coverage. For new construction with impact windows and modern roofing, Gewant often recommends self-insuring. “Why are you insuring your house? Why aren’t you self-insuring? Because it makes a hell of a lot more sense.”
She doubts insurers’ ability to pay out after a major hurricane. “God forbid we ever have one of those storms that blows everything off, I really don’t think that the insurance companies are going to be paying. I think they’re going to just all declare bankruptcy.”
Her advice resonates with clients who own multiple homes. “These are people who have two and three homes, so they’ve been very happy that I explained to them the difference.”
The COVID-19 pandemic drove record demand for South Florida real estate as remote work and open policies attracted buyers from across the country. Gewant describes 2020 and 2021 as her “two best years.”
“COVID was crazy with everybody wanting to come down here to the ‘Free State of Florida,’” she says. “No one cared. The price was just a suggestion.”
Escalation clauses became standard, pushing prices far above list. “There was not a single offer I received as a listing agent that didn’t have an escalation clause, and the escalations were insane.”
While New Yorkers have long fueled South Florida’s luxury market, Gewant says political and economic factors are now driving more buyers south. “New Yorkers we’ve always had. It’s like the running joke. People say, ‘Where are you from? New York?’ They don’t even give you a chance to answer.”
She expects further migration post-election. “After the previous election, have I seen a couple of people? Yes, absolutely. Do I anticipate more once everything kind of gets going? Yes, I am anticipating that.”
Country club properties, once discounted, have surged in value. “Before COVID, the country clubs were basically half price. COVID came and that went out the window. Country Club homes are as expensive as anything else.” However, membership equity has nearly disappeared. “Back then there was equity. You got 80% of your membership back. After COVID that went out the door. If you get anything back, it’s like $1,000.”
Limited land availability continues to challenge buyers expecting larger lots. “The biggest challenge I have is when I’m working with somebody who wants a single-family home, and they don’t understand that you don’t get an acre or two acres here.”
New construction usually means zero lot lines, especially in planned communities. “The builders know that the more houses they can put on the lot, the more money they’re going to make.”
Gewant’s focus on oceanfront properties is driven by this scarcity. “I suggest Oceanfront property since they are not making anymore of it unless you go to Dubai, and some of that is sinking.”
Looking ahead, Gewant sees interest rates as a key factor. “Right now, it’s still a buyer’s market in 90% of where I’m selling. If the Fed drops again, I think it might become more of an even market, which would be nice. We haven’t had an even market in a very long time.”
Gewant stresses the need for experience in luxury transactions and warns against choosing inexperienced agents for major purchases. “Just because your best friend’s daughter’s girlfriend became a realtor, that’s not the best person to use with one of the biggest investments of your life.”
She urges buyers to vet agents carefully. “Look at their reviews. Just don’t use a newbie, because they really don’t know what they’re doing. Most people who start in real estate say, ‘Oh, I want to start in the luxury market.’ You can’t run until you know how to crawl, start working lower price points…you need to know how to prepare a contract and know what addendums are required and how to fill them out properly.”
South Florida’s luxury market is being reshaped by new regulations, rising insurance costs, and evolving buyer preferences. For agents and buyers alike, success now depends on deep local expertise, adaptability, and a willingness to navigate an increasingly complex environment where traditional seasonal patterns have given way to year-round activity driven by lifestyle, policy, and market realities rather than weather alone.
Explore similar articles from Our Team of Experts.
The Dallas luxury real estate market continues to attract high-caliber professionals, driven by major corporate relocations and significant commercial investment. Recent PwC rankings placed ...
