U.S. Housing Market Hits Record $55.1 Trillion While Florida Values Drop $109 Billion

The U.S. housing market has reached a record value of $55.1 trillion, according to a new report released by Zillow on September 8, 2025. Since 2020, the market has grown by more than $20 trillion, fueled largely by rising home prices and the steady pace of new construction. However, growth has slowed significantly in the past year, with the market adding just $862 billion, a sharp contrast to the rapid gains of the pandemic era.

Florida, one of the fastest-growing housing markets over the last several years, is now showing signs of weakness. Zillow’s analysis revealed that Florida’s housing market actually lost $109 billion in value over the past year. While the state added more than $1.6 trillion in housing value between 2020 and mid-2025, recent declines in home prices across key metropolitan areas have offset earlier gains. Rising insurance costs and affordability challenges are eroding some of Florida’s competitive edge, particularly as buyers become more price-sensitive.

Major Florida cities are leading the decline. Home values in Miami fell 4.6% year over year, while Tampa dropped 6.2% and Orlando declined 4.3%. These decreases come at a time when many U.S. metros are stabilizing or even rebounding, underscoring Florida’s unique challenges. Sellers in the Sunshine State are increasingly resorting to price cuts, and homes are spending longer on the market, giving buyers more leverage than in recent years.

Despite these declines, new construction continues to play a stabilizing role in Florida’s housing sector. Nationally, new builds have added $2.5 trillion in value since 2020, and about 20% of Florida’s growth during that time came from new construction. This ongoing development has helped offset demand pressures, particularly in high-growth regions, though it has not fully shielded the state from recent declines in resale home values.

As of mid-2025, the average home value in Florida stands at $382,136, down 4.8% from a year earlier. Inventory is rising, with more than 206,000 homes currently on the market and over 36,000 new listings added in July alone. Homes are taking longer to sell, with the median time to pending now at 53 days. The gap between list prices and sale prices is widening as well, with the median sale-to-list ratio at just 0.971, signaling a shift toward a buyer-friendly environment.

For Florida homeowners, the message is clear: the market has cooled considerably from its pandemic-era highs, and expectations may need to be adjusted accordingly. Buyers, on the other hand, may find more negotiating room and better opportunities than they have had in years. While the broader U.S. market sets new records, Florida’s real estate tells a different story—one of correction, recalibration, and the possibility of renewed balance ahead.

More Unemployed Than Job Openings for First Time Since April 2021 — What It Means for Mortgage Rates and the Housing Market

For the first time since April 2021, the number of unemployed Americans has surpassed the number of available job openings. According to July’s Job Openings and Labor Turnover Survey (JOLTS), job openings fell to about 7.18 million, while the pool of unemployed workers slightly exceeded that figure. This reversal signals a meaningful cooling in the labor market after years of tight conditions, raising new questions about the Federal Reserve’s next move and what this shift could mean for mortgage rates and the housing market.

Mortgage rates have already begun to reflect the softer economic backdrop. The average 30-year fixed mortgage rate recently dipped to under 6.5%, its lowest level in nearly a year. However, despite cheaper financing, many potential buyers remain cautious. Applications for new home loans fell 3% from the previous week, according to the Mortgage Bankers Association, showing that affordability challenges and broader economic uncertainty are still weighing on demand. On the other hand, refinancing activity has started to climb, suggesting that homeowners are beginning to take advantage of the drop in rates.

The key driver behind these moves is the expectation that the Federal Reserve will shift toward cutting interest rates. With the labor market cooling and inflation trending lower, bond yields have fallen as investors anticipate Fed action. Markets are now pricing in a strong likelihood of a 25-basis-point cut at the Fed’s September meeting, with the potential for further easing later in the year. Since mortgage rates are closely tied to Treasury yields, any sustained decline in bond yields could translate into even lower mortgage rates heading into late 2025 and early 2026.

For the housing market, the implications are significant. Lower borrowing costs could gradually restore affordability, especially for first-time buyers who have been priced out during the high-rate environment of the past two years. As mortgage rates trend downward, more buyers may return to the market, creating fresh demand for listings. At the same time, sellers are beginning to adjust, with some lowering asking prices or offering concessions to meet the market. This dynamic could lead to a more balanced environment after years of volatility.

Still, challenges remain. While declining mortgage rates are a welcome relief, home prices in many markets remain elevated, and wage growth is slowing alongside the labor market. Buyers may be more selective, and sellers may need to reset expectations. The near-term outlook suggests a housing market in transition—one where lower rates could unlock pent-up demand but broader affordability and economic confidence will ultimately determine the pace of recovery.

Bottom line: For the first time in over four years, unemployed workers now outnumber job openings, marking a turning point in the labor market. This shift is already helping to push mortgage rates lower, with further declines possible if the Fed follows through with rate cuts. For homebuyers and sellers alike, the coming months could bring new opportunities, but also continued adjustments as the housing market responds to a changing economic landscape.

30-Year Fixed Mortgage Rate Dips Below 6.50% for the First Time Since October 2024

In a significant development for the housing market, the average 30-year fixed mortgage rate has dipped below 6.50%—a threshold not seen in nearly a year. According to Mortgage News Daily’s daily index, this is the first time rates have fallen under 6.50% since October 3, 2024, when the rate briefly hit 6.49%.

Why This Matters

This drop is more than symbolic. Since July 29, 2025, when the 30-year fixed rate stood at 6.77%, rates have fallen 0.28 percentage points, landing today, September 3, 2025, at 6.49% following a brief uptick to 6.53% on Monday. The movement reflects improved economic signals, softening inflation, and increased investor demand for Treasurys—all of which are contributing to lower mortgage-backed securities yields and, in turn, more favorable mortgage pricing.

What This Means for Buyers & Refinancers

• Increased Affordability: A rate of 6.49% allows buyers to qualify for more home—about $20,000 more in purchase price for the same monthly payment compared to when rates were near 7%.
• Refi Opportunity: Homeowners with rates above 7% could save $150–$250/month on a $300,000 loan by refinancing at today’s levels.
• Market Confidence: Sub-6.50% rates may renew confidence among sidelined buyers, potentially boosting fall home sales activity.

What’s Driving the Drop

Several factors have contributed to the 0.28-point decline over the past month:

• Weaker job growth in July, signaling an easing labor market
• Stable Treasury yields near 4.2%, driven by investor demand and recessionary caution
• Speculation that the Fed may begin loosening monetary policy sooner than previously expected

⏳ A Narrow Window?

Industry experts don’t expect rates to plummet, but they do see the possibility of further modest declines if economic data continues to soften. Most forecasts peg rates in the 6.25%–6.75% range through the remainder of 2025. This drop below 6.50% could prove temporary if inflation surprises to the upside or the bond market reverses course.

Historical Context

Final Thoughts

Whether you’re house hunting or considering refinancing, a rate below 6.50% offers rare breathing room in today’s high-price housing market. With fall inventory expected to pick up, now may be the moment to act. Locking in a favorable rate today could pay dividends for years to come.

Booze on the Beach? Miami Beach Weighs Alcohol Pilot Program

Miami Beach is weighing a proposal that could change the city’s relationship with its iconic shoreline—by allowing alcohol sales directly on the sand. The City Commission is considering a one-year pilot program that would permit regulated sales of beer, wine, and cocktails at designated beachfront kiosks. If approved, the program would authorize Boucher Brothers, the city’s longtime beach concessionaire, to serve alcoholic beverages at specific areas between Fifth and 14th Streets, as well as at 21st Street, during set hours from 11 a.m. to 6 p.m. daily.

The proposal aims to bring a level of control and oversight to a practice that already occurs unofficially. While drinking alcohol on the beach is currently prohibited, enforcement has been inconsistent, and many beachgoers routinely bring their own beverages. City officials hope the pilot program could reduce the prevalence of unregulated alcohol consumption and curb the activities of unauthorized vendors, while also creating a new revenue stream from beachfront concessions.

According to a city memo, the proposed agreement would generate substantial revenue for Miami Beach. The city would receive 18% of alcohol sales revenue up to $5 million and 20% of revenue beyond that, with a minimum guaranteed payment of $250,000 annually. In addition, the proposal includes potential monetary contributions to the Miami Beach Bandshell, helping fund local cultural programming.

Supporters of the initiative argue that it offers a pragmatic solution to a longstanding issue. By permitting sales in a controlled environment with licensed staff and clearly defined hours, the city can manage beach drinking more effectively while offering a premium amenity to tourists. Opponents, however, worry that formalizing alcohol sales could reinforce Miami Beach’s party-town image—something city leaders have worked hard to rebrand in recent years. Critics have also voiced concerns about public safety, noise, and the potential for increased rowdiness in family-friendly areas.

The decision now rests with the City Commission, which is expected to vote on the pilot program soon. If it moves forward, city staff will be required to submit quarterly reports detailing the program’s impact, including safety metrics, business activity, and public sentiment. These evaluations will help determine whether the policy should be expanded, modified, or discontinued after the one-year trial period.

This pilot represents a broader shift in how Miami Beach approaches its evolving identity—balancing the demands of tourism with the quality-of-life concerns of residents. It also highlights the city’s willingness to test creative solutions in pursuit of both economic growth and improved public management. Whether this experiment becomes a permanent fixture remains to be seen, but it signals Miami Beach’s openness to reimagining how its world-famous shoreline can serve both visitors and the local community.

South Miami’s Sunset Place to Be Demolished and Reborn as 7-Tower Urban Village with 1,500+ Residences, Hotel & Theater

The long-time landmark known as Shops at Sunset Place—a sprawling, open-air mall that opened its doors in 1999—has officially entered its final act. After decades of dwindling foot traffic and frequent tenant turnovers, South Miami’s City Commission unanimously approved the mall’s demolition earlier this year. The aim? To clear the way for a sweeping redevelopment set to redefine the area’s urban identity.

From Mall to “Village”: Heatherwick Studio’s Vision

London-based Heatherwick Studio, led by acclaimed designer Thomas Heatherwick, has been tapped to reinvent the site as a vibrant, walkable community. The plan: dismantle the monolithic mall—and all but its parking structure—to make room for a mosaic of low-, mid-, and high-rise buildings artfully arranged around a new pedestrian-friendly street grid.

By reintroducing continuous streets that flow into the site—an urban concept Heatherwick describes as “bringing back streets”—developers hope to activate the core of the development and weave it into the larger South Miami fabric.

Credit: Heatherwick Studio

Credit: Heatherwick Studio

What to Expect: A Mixed‑Use Urban Destination

The approved master plan includes:

Residential units: 1,513 residences will bring a built-in population to enliven the streets

Retail and dining: A pedestrian-friendly “restaurant street” is envisioned, lined with boutique shops, cafés, bakeries, and restaurants—each storefront thoughtfully unique

Central public plaza: A sprawling, open-air plaza (approximately 15,000 square feet) will serve as the social heart of the project, ideal for pop-ups, markets, and nightlife

Hotel, offices, and theater: The redevelopment will include a boutique 287-key hotel, 50,892 square feet of office space, and a theater—possibly relocating the AMC cinema—which will amplify the site’s 18/7 vibrancy

Credit: Heatherwick Studio

Credit: Heatherwick Studio

Towering Heights: Gradual Density Integration

Heatherwick Studio’s design sensibility emerges in the height variations across the site:

This scaling plan delicately transitions the neighborhood from pedestrian-level charm (near Sunset Drive) to skyline-defining towers facing U.S. 1.

Honoring the Past, Building for the Future

Sunset Place isn’t the first retail experiment at this site. It traces its roots back to the Bakery Centre (1986–1996), a similarly sized retail‑office complex that failed. That history has made architects and developers cautious—but excited to “break the cycle of soulless places” in favor of designs meant to foster place and community.

Midtown Development acquired the site in early 2021—coincidentally in the thick of the COVID downturn—and partnered with Heatherwick to reimagine what a future‑forward South Miami centerpiece could be.

A Long-Brewing Transformation Timeline

Demolition of the Shops at Sunset Place is scheduled to begin in the first quarter of 2026, assuming approvals and site preparations stay on track. The mammoth redevelopment will unfold in multiple phases over the next 10 years. The very first phase—highlighted by newly constructed streets, a residential condo tower, and a 287‑room hotel—is expected to be delivered by 2029, according to city and developer projections.

While the full buildout will extend well beyond that, early activations such as pop-up shops, interim public plazas, and community programming may be introduced during construction to maintain momentum and vibrancy on the site. Midtown Development has emphasized its commitment to supporting local businesses and keeping the area lively throughout the transformation, ensuring that Sunset Place remains an engaging part of South Miami—even as construction progresses.

A Cultural and Urban Pivot

This isn’t just a structural overhaul—it’s a cultural shift. South Miami has committed to transforming a dormant, car-centric mall into an integrated, pedestrian-first destination. The redesign nods to European plazas with outdoor café seating while embracing modern mixed-use energy. It’s a bold move that channels global urban trends into this beloved Miami community.

Credit: Heatherwick Studio

Credit: Heatherwick Studio

Looking Ahead: A Bold New Vision for South Miami

Surpassing its legacy as a fading suburban mall, Sunset Place is poised to become a reinhabited, reactivated slice of South Miami. With Heatherwick Studio’s forward-thinking architecture, 1,513 new residences, lively streetscapes, and dynamic public spaces, what replaces it has the potential to become a transformative anchor for the region. For residents, developers, and visitors, this long-awaited change is more than construction—it’s the start of a more connected, walkable, and animated downtown South Miami.

Stay tuned as the cranes arrive, the streets return, and Sunset Place reboots—this time, as an urban village crafted for communities more than car trips.

Is Fed Chairman Jerome Powell on the Way Out? What a 300 Basis Point Cut Would Mean for Miami Real Estate

Federal Reserve Chairman Jerome Powell is once again in the political crosshairs. This time, the controversy surrounds a $2.5 billion renovation of the Fed’s Washington, D.C. headquarters. Critics, including several Republican lawmakers, have accused Powell of misleading Congress about the cost and scope of the project, claiming the renovation includes unnecessary luxury upgrades. President Trump has reportedly seized on the issue as political leverage to push Powell out of office—either through resignation or by invoking a rarely used provision to fire him “for cause.”

President Trump has made no secret of his dissatisfaction with Powell’s handling of interest rates. Since returning to the national spotlight, Trump has advocated for a dramatic 300 basis point (3%) rate cut, arguing that slashing rates from around 4.5% down to 1.5% would save the federal government hundreds of billions of dollars in debt servicing costs. According to his allies, such a cut could result in up to $360 billion in annual savings, although more conservative estimates put the figure closer to $174 billion in the first year alone. Trump’s goal appears to be replacing Powell with a Fed Chair who will aggressively pursue this monetary policy shift.

If implemented, a 300 basis point rate cut would be unprecedented in modern U.S. economic history. The last time the Fed enacted such a large move was during the 2008 financial crisis and again during the COVID-19 emergency response—both times with cuts closer to 100 basis points. A three-point reduction would significantly lower borrowing costs across the board, from mortgages to credit cards to business loans. This would likely lead to a surge in consumer spending, business investment, and home buying. Financial markets would almost certainly rally on the news, with equities, cryptocurrencies, and even gold seeing sharp gains in anticipation of looser monetary conditions.

But such a drastic move isn’t without risks. A key concern is the resurgence of inflation. Many economists warn that a rate cut of this magnitude could reignite inflation, potentially pushing it back above 5% after months of moderation. Another issue is the value of the U.S. dollar. Lower interest rates tend to weaken a country’s currency, and a sudden 300 basis point cut could lead to a rapid 10% drop in the dollar’s value—raising the cost of imports and exacerbating inflation pressures. There’s also the possibility of asset bubbles forming, especially in real estate and tech stocks, as cheap money floods the market.

In Miami, the implications of such a rate cut would be immediate and dramatic. Mortgage rates, currently hovering around 7%, could drop to the low 4% range or even lower. This would significantly boost purchasing power, particularly among first-time buyers and investors. Historically, even a 100 basis point cut can increase housing affordability by 10%; a 300-point cut could make homeownership viable for thousands more buyers practically overnight. Demand would spike, fueling a new wave of bidding wars, rapid price appreciation, and increased development activity—especially in high-growth neighborhoods like Edgewater, Little River, and Wynwood.

However, the downside in Miami would be a further deterioration in affordability. Home prices, already inflated due to limited inventory and migration from higher-cost states, could surge another 20% or more. That would likely push more locals out of the market and exacerbate the region’s housing inequality. On the investment side, commercial real estate—especially multifamily—would benefit from cheaper debt and renewed investor appetite, but office space and retail may see less of a bounce due to ongoing structural challenges.

From a macro perspective, such a cut could energize U.S. GDP growth, potentially pushing it above 3.5% annually. But the long-term consequences could be destabilizing. The move would almost certainly raise concerns about the Federal Reserve’s independence if it appears that political pressure—rather than economic data—is guiding monetary policy. Financial institutions, global markets, and U.S. allies could begin to question the stability and predictability of the Fed, which has long been a cornerstone of global financial confidence.

In conclusion, the rumors of Powell’s resignation—fueled by scandal and political pressure—could mark a turning point in U.S. economic policy. A 300 basis point rate cut would bring short-term relief to borrowers and spark a new wave of growth in places like Miami, but the risks to inflation, market stability, and Fed independence are considerable. Whether this is sound economic strategy or reckless short-termism remains to be seen—but the impacts, particularly on the real estate market, would be both swift and significant.

Berkadia Secures $73M Construction Loan for Nexo Residences in North Miami Beach

In a significant milestone for one of North Miami Beach’s most exciting developments, Berkadia has successfully secured a $73.27 million construction loan on behalf of Fortune International Group and Blue Road for the completion of Nexo Residences, a 16-story short-term rental-friendly condominium.

The financing, arranged by Berkadia’s South Florida team — including Managing Director Scott Wadler, Director Michael Basinski, Vice President Bobby Dockerty, Senior Managing Director Mitch Sinberg, and Managing Directors Brad Williamson and Matt Robbins — was provided by Bank Hapoalim (BHI). The loan follows Nexo’s recent construction topping off, which had previously been funded by a combination of EB-5 investor capital and presale deposits.

With 90% of units sold and completion on track for 2027, Nexo Residences is quickly emerging as a standout project in a fast-transforming corridor next to SoLé Mia and minutes from Aventura.

“Fortune International and its partner Blue Road are delivering an exceptional building in a rapidly transforming area adjacent to Aventura and next to SoLé Mia,” said Scott Wadler. “A trifecta of experienced Sponsorship, high-quality product, and great location generated significant interest from lenders.”

The tower — designed for modern global buyers — allows for short-term rentals, an increasingly in-demand feature. The fully furnished residences range from studios to three-bedroom units, with prices starting from the $599,000s, and include a limited selection of three- and four-bedroom townhomes.

Notable architecture and design collaborators include Carlos Ott, Frankel Benayoun Architects Inc., and Urban Robot. Residences offer floor-to-ceiling windows, Italian cabinetry, porcelain flooring, custom closets, lockable owner storage, and dedicated parking for each unit.

Nexo also raises the bar on lifestyle with standout amenities, including:

• A three-story lobby and café lounge

• Two-story coworking and tech hub

• Resort-style pool with Jacuzzi

• Rooftop observatory deck

• Summer kitchens and outdoor movie theater

• Yoga studio, clubroom, event space, and playground

Located at 13899 Biscayne Boulevard, Nexo Residences is just minutes from the Intracoastal Waterway, Oleta River State Park, Florida International University, Bal Harbour, Sunny Isles, and Hollywood Beach. The property’s accessibility is bolstered by its proximity to Miami and Fort Lauderdale International Airports and the Brightline Aventura station.

“The lifestyle offered at Nexo — combining elevated design, robust amenities, and rental flexibility — has driven strong sales momentum with buyers from over 25 countries,” said Edgardo Defortuna, CEO of Fortune International Group. “Securing this financing reaffirms the market’s confidence in both the product and the North Miami Beach submarket.”

With sales and marketing exclusively managed by Fortune Development Sales, Nexo Residences continues to attract a global audience eager for turnkey living and investment-ready opportunities in one of South Florida’s fastest-growing neighborhoods.

Construction Permit Filed for 78-Story Ora by Casa Tua Tower in Brickell

Continuum Company Introduces Expansive Waterfront Vision for North Bay Village

Continuum Company has unveiled a sweeping new plan for North Bay Village with the introduction of the Continuum Waterfront District—a transformative, mixed-use development designed to redefine the area’s bayfront identity. Spanning over three acres along Biscayne Bay, the two-phase master-planned district was unanimously approved by the Commission and marks a major step toward realizing North Bay Village’s potential as a premier waterfront destination.

At the heart of the project is Continuum Club & Residences, now under construction and nearly 50% sold. This first phase includes over 60,000 square feet of amenities, from a resort-style waterfront pool and wellness center to a private marina and exclusive memberships for yacht clubs, beach clubs, and the elite dining platform, Dorsia. A historic deck will also be restored at the water’s edge, offering a blend of Miami heritage and elevated lifestyle.

The broader Continuum Waterfront District will include:

• Two Continuum Club residential towers

• A Continuum-branded boutique hotel with rooftop pool and lifestyle programming

• Renovated marina and new bayfront boardwalk

• Upscale restaurants, bars, and curated retail storefronts

• Outdoor wellness and green spaces designed for connectivity and walkability

“The Continuum Waterfront District is designed to bring new life to North Bay Village and elevate the experience of waterfront living,” said Ian Bruce Eichner, Chairman and CEO of Continuum Company. “We’re grateful for the support of the Commission and are proud to collaborate on a shared vision that aligns with the NBV100 Master Plan.”

Allie Eichner, President of Continuum Florida, emphasized the development’s long-term impact: “This is more than just a real estate project—it’s a rare opportunity to create a connected, livable community that embraces Miami’s bayfront lifestyle and natural beauty.”

Building on the success of Continuum South Beach, the new district reflects Continuum’s continued commitment to thoughtful design, neighborhood revitalization, and creating destination-worthy environments that combine luxury living with civic-minded planning.