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The Building Boom On Key Biscayne

May 6th, 2014 Written By Riley Smith

building a sand castle on key biscayne

If you follow the Key Biscayne real estate market, then you know that prices have increased dramatically over the past year.  Part of this increase in value is due to all of the new construction that is going on.  Investors all over the Key are purchasing single-family ranch style homes for land value, demolishing them and building large contemporary homes.  These new homes are pushing up the average sale price.

Last week Martha Brannigan from the Miami Herald wrote an article about the building boom on Key Biscayne titled “New Mansions Loom Over Tiny Key Biscayne“.  This article is part of the Herald’s “Boom, Bust & Back” series.

Below are some of the figures from her article:

  • Nearly half of the island’s lots have newer structures/homes.
  • 60 homes are currently under construction on Key Biscayne (11 set for demolition).
  • Median Household Income On Key Biscayne: $120,020 (compared to $40,464 in the rest of Miami-Dade)
  • Foreclosure Rate On Key Biscayne: 1.1% (compared to 4.8% in the rest of Miami-Dade)
  • Residents with a mortgage on Key Biscayne: 51% (compared to 69% in the rest of Miami-Dade)
  • Prices on Key Biscayne are just 6% below their peak of 2008.

Because Key Biscayne land sells at such a premium, the return on investment is huge for these big developers.  Take a look at a few properties which were purchased for land value and are now back on the market as new construction homes:

  • 798 Curtiswood Drive | In 2012 sold for $1,150,000 | Currently listed for $4,570,000
  • 385 Heather Lane | In 2012 sold for $1,450,000 | Currently listed for $3,800,000
  • 631 Warren Lane | In 2012 sold for $1,200,000 | Currently listed for $3,400,000

With 60 new homes slated for Key Biscayne in the coming years, it doesn’t seem that the building boom is backing down anytime soon.

We know the Key Biscayne real estate market and track the sales so that our clients make informed, knowledgeable decisions.  If you are interested in working with a Realtor who specializes on Key Biscayne, please contact us here.

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