Over 7,000 Unsold Condos Still on Market from South Florida's Boom Years
According to a new report from South-Florida based Condo Vultures, nearly 7,400 condominium units - some 15 percent of the total new inventory - created near the coast in the tricounty South Florida region during the real estate boom are still not sold as of Dec. 31, 2010.
Developers created nearly 250 projects with 49,000 units since 2003 in the seven largest condo markets east of Interstate 95 in Miami-Dade, Broward, and Palm Beach counties during the boom that began in 2003.
In the four decades prior to the boom, developers created nearly 700 condominium projects with more than 76,500 units in the same seven coastal markets of Greater Downtown Miami, South Beach, Sunny Isles Beach, Downtown Fort Lauderdale and the Beach, Hollywood / Hallandale Beach, Downtown West Palm Beach and Palm Beach Island, and Boca Raton / Deerfield Beach., reports Condo Vultures.
"Developers increased the total number of condos near the coast in South Florida by 64 percent to more than 125,000 units since 2003," said Peter Zalewski, a principal with Condo Vultures LLC. "Developers created the new South Florida condo inventory at a pace of more than 6,100 units annually during the boom. The reason lenders apparently permitted this widespread condo construction to occur is that buyers have been purchasing an average of 5,150 new South Florida coastal units annually since 2003."
During the South Florida real estate boom, developers with bank financing created 148 projects with more than 34,000 units in three Miami-Dade County markets. An additional 68 projects with more than 10,000 units were created in two Broward County markets. In two Palm Beach County markets, developers created 28 projects with nearly 4,500 units, according to Condo Vultures.
On a market-by-market basis, Greater Downtown Miami has the distinction of being the single neighborhood with the greatest number of new condos created during the boom with nearly 22,250 units.
Sunny Isles Beach ranks second with nearly 6,400 new units created during the boom, and the internationally popular South Beach neighborhood of Miami Beach ranks third with nearly 5,600 new units created since 2003.
Downtown Fort Lauderdale and the Beach narrowly claimed the No. 4 spot with nearly 5,100 new units added during the boom. The Hollywood / Hallandale Beach market ranks fifth with nearly 5,000 new units created since 2003.
Downtown West Palm Beach and Palm Beach Island ranks sixth in South Florida based on 4,500 new units created during the boom.
At the bottom of the list with the fewest number of new units created is the Boca Raton / Deerfield Beach market, where less than 1,050 condos were added during the boom.
Condo Vultures relies on public records and private research to complete this study over the course of the last three years.