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Could South Beach Condo Correction Reverse Greater Downtown Miami's Boom?

In this episode of Miami Condo Mondays™, the hosts discuss how a looming price reset could divert the mainland’s momentum and return the spotlight to the former hotspot.

Miami Condo Mondays™ is a live podcast hosted by Peter Zalewski of the Miami Condo Investing Club™ and veteran broker Jenny Huertas of CVRRealty.com providing an in-depth look at the latest residential real estate trends in South Florida.

Recorded weekly in Greater Downtown Miami, the podcast offers a one-hour discussion on various real estate topics, including preconstruction condos, market trends and investment strategies.

The hosts share their expertise, with Zalewski focusing on macro perspectives and Huertas offering micro insights from her on-the-ground experience.

Tune in every Monday at 4 PM (EST) on the social media accounts of Peter Zalewski and Jenny Huertas for insights on the latest trends in the South Florida condo market.

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Episode Overview

In this episode of Miami Condo Mondays™ podcast on Jan. 26, 2026, co-hosts Jenny Huertas‚ the broker-owner of CVR Realty, and Peter Zalewski of the Miami Condo Investing Club™ discuss a new report that spurred a discussion about how the current South Beach condo supply glut and abysmal cap rates could finally break the mainland’s recent dominance.

The report was based on research conducted for the planned South Beach Condo Correction Walking Tour™ scheduled for 10 am Saturday, Jan. 31, 2026.

The data reveals that the barrier island is currently choked by 15.3 months of inventory while producing a basic cap rate of just 0.4% for investors based on current South Beach metrics.

This statistical reality suggests that while a pivot has not yet materialized, the underlying conditions are being formed to refocus investor attention back to South Beach as the pricing pendulum prepares to swing across the Gen. Douglas MacArthur Causeway.

While Greater Downtown Miami has successfully poached the "pretty people" with high-density towers and urban amenities for the last two decades, a meaningful price capitulation on South Beach could divert that momentum and return the market’s spotlight to the former hotspot.

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This potential market reset may not be that far fetched given South Florida’s tendency to drop the old for something new.

Greater Downtown Miami has spent years as the shiny newcomer but the barrier island at lower prices could soon be positioned to reclaim its status as the “next big thing” if valuations finally buckle under the burden of the current carrying costs.

As the Florida Condo Association Financial Cliff forces long-deferred repair costs into the light, any kind of resulting price correction—funded by cash-strapped unit owners heading for the exits—could offer a lower-density alternative to the speculative highrises currently defining the Greater Downtown Miami skyline.

During the 67-minute episode, the discussion highlights that for the first time in years, the “shiny object” of Greater Downtown Miami is facing a legitimate threat from a South Beach market that is finally being forced to recalibrate its valuations, Zalewski said.

The hosts—who both lived in South Beach during its heyday—wrapped up the episode exploring whether Greater Downtown Miami’s “winner-take-all” boom could be challenged by the same affordability crisis that once hollowed out the beach’s local population.

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Episode’s Top 10 Takeaways

  1. South Beach condo inventory has swelled to a 15.3 month supply as of January 2026.

  2. Annual cap rates for South Beach condo investors average about 0.4%.

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