The Truth About Miami’s “Sinking” Condos: Should You Be Concerned?
Miami’s high-rise condo market was shaken recently by a University of Miami study suggesting that some coastal buildings are sinking. But how serious is the issue? Katherine Kallergis, residential bureau chief at The Real Deal, breaks down the findings on the latest Better Decisions Podcast—separating fact from fear.
What the Study Really Says
The study analyzed satellite imagery from 2016 to 2023 to track subtle shifts in Miami-Dade buildings, including post-2014 constructions. It found minor subsidence—between 2 to 8 millimeters per year—in areas like Bal Harbour, Surfside, and Sunny Isles, known for luxury condo developments. But is this unusual?
Experts say no. Miami’s limestone foundation, combined with sand layers, naturally shifts during and after construction. Engineers account for this by reinforcing foundations, often overcompensating by 30% to ensure long-term stability. While the study’s biggest surprise was the continued movement over years, no evidence suggests immediate danger. The key question now is whether this trend will persist and what it could mean for the future.
Why Sensational Headlines Can Mislead
Despite the attention-grabbing headline, the study itself does not suggest an imminent crisis. Ethical journalism is key when covering real estate concerns, as misinformation can create unnecessary panic. Some have drawn comparisons to the Champlain Towers collapse, but that tragedy stemmed from structural neglect, not minor subsidence.
A positive outcome of these discussions? Buyers are becoming more informed. Working with an expert who understands Miami’s best and worst developers ensures you make smart, confident decisions.
Bigger Issues in Miami’s Condo Market
Beyond subsidence, Miami condos face other challenges:
- Financing & Interest Rates – Rising rates impact affordability and investment potential.
- Condo Buyouts & Reserve Requirements – Stricter financial reserves are forcing some owners—especially retirees—to sell, leading to potential developer buyouts.
- Multifamily Conversions – Struggling rental properties are being turned into condos, worsening the affordability crisis as older, lower-cost units disappear.
- Migration Trends – Service workers are being priced out, while wealthier buyers continue to move in, shifting the city’s economic landscape.
The Future of Real Estate Journalism
With social media dominating news consumption, fewer people read full articles, often forming opinions based on headlines alone. This makes honest, well-researched journalism more crucial than ever. The Real Deal and our podcast remain committed to delivering in-depth, transparent reporting on Miami’s evolving real estate market.
Want to Learn More?
For an unbiased, expert perspective on Miami condos, including the latest developments and investment opportunities, reach out to David Siddons at (305) 508.0899, email [email protected], or book a Zoom call via Calendly.