Located on a 14.5-mile-long barrier island in the eastern-central part of Palm Beach County, Palm Beach has an impressive history of being one of the best real estate investments in the United States. The town is separated from the cities of West Palm Beach and Lake Worth Beach by the Intracoastal Waterway to its west, while the Gulf Stream and the Atlantic Ocean surround its eastern shores.
This exclusive location allows Palm Beach to maintain its peaceful, Old-World charm amid the bustling activity of its neighboring cities. As one of the highest appreciating areas in the country, investing in Palm Beach luxury real estate can bring diversity to your portfolio and serve as a stable personal asset.
To navigate this competitive market, it is crucial to have a comprehensive picture of Palm Beach based on accurate data analysis, intimate knowledge of the Palm Beach community, and a nuanced understanding of its local market values from a regional and national perspective.
So, before you consult with the Frisbie Real Estate team to assist you in finding your next real estate investment, here is a comprehensive guide to buying luxury property in Palm Beach, Florida.
Table of Contents
Overview of Palm Beach market trends
Navigating the Palm Beach housing market requires understanding its real estate data within the context of social and economic developments. To help you gain a holistic perspective on the market, below is an overview of significant market trends in Palm Beach.
Housing inventory
As of September 2021, the town of Palm Beach had 91 active listings, including single-family homes, co-op residences, and condominiums. Large apartment complexes are the most common housing type in Palm Beach, constituting 68% of the town’s total housing units. This property type can be found mostly around the Mid-Town area and South End in West Palm Beach. Single-family homes are the second most prevalent housing type in Palm Beach, accounting for 26% of the total housing stock, and are predominantly located in the North End and Estate Section of Palm Beach.
Because of its coastal nature, acreage is rare and highly valuable in Palm Beach. Most of the residential properties (59%) have two or fewer bedrooms. Moreover, as a world-renowned vacation destination, a substantial percentage of Palm Beach’s housing stock is seasonally occupied.
To see an updated quarterly report on the housing inventory of Palm Beach real estate, you can access our market reports here.
Property values
According to our Q3 2021 residential market report, single-family residential properties have a median price of $9.8 million, while condominiums and co-op residences have a median price of $1 million. While median prices vary every quarter, it should be noted that Palm Beach properties have some of the highest home appreciation rates in the United States. For the last 10 years, Palm Beach real estate appreciated by 134.7%, resulting in an average annual home appreciation rate of 8.9%. This places Palm Beach among the top 10% for real estate appreciation in the country.
For a more detailed analysis of the Palm Beach residential market, you can find our quarterly reports here.
Community profile
Palm Beach, Florida is a small coastal town with a population of a little under 9,000 as of 2019. While the area is known to have a relatively high median age, there has been a dramatic shift in the Palm Beach community in the past few years, notably driven by the arrival of young, high-net-worth individuals and families, most of whom work in hedge funds and private equity.
Although the influx of luxury homeowners from Northeastern cities like New York is typical, pandemic-related factors intensified this trend. It even reached the point where Bloomberg characterized the town as the new “Hamptons South,” with young families going as far as to buy homes sight unseen.
Economic profile
Residential property buyers from Northeastern cities are not the only ones following the southern migration trend. Major corporations and businesses have chosen to relocate their headquarters to Southern Florida, particularly in Palm Beach County.
Before the pandemic, Palm Beach County was already known as “Wall Street South.” It is a highly attractive area for business, drawing in a variety of companies ranging from financial titans to successful start-ups. In 2016, the county received more than $100 million in capital investment, as well as AAA bond ratings from Fitch, Moody’s, and Standard & Poor’s.
During the pandemic, Palm Beach County ranked as the top migration location in Florida, with 10 financial industry giants opening offices in the Palm Beaches. The newest additions to the county’s roster of leading companies include financial service firms such as NewDay USA, Virtu Financial, and Elliott Management.
Major companies from industries like manufacturing, clean technology and marine industries, equestrian, and life science also made the move to Palm Beach County, making it the top county for both people and income growth across the state of Florida. Credit should be given to the availability of land and commercial properties, premier office spaces, and the area’s business-friendly environment.
Recent developments in Palm Beach
A century of developing a beautiful community
The town of Palm Beach has always been a lucrative area for investment because of its natural beauty, strategic location, and economic strength. After the construction of Henry M. Flagler’s Royal Poinciana Hotel (also known as “The Breakers”) in 1894 and the Florida East Coast Railroad in 1896, innovative developments and steadfast governance continuously worked hand in hand to elevate Palm Beach into the premier community that it is today.
Before celebrating its Centennial Year in 2011, Palm Beach spearheaded development projects including the opening of the current Royal Park Bridge and the restoration of the Palm Beach Town Hall and Worth Avenue. Both projects ensured Palm Beach’s involvement in the rapid economic growth of the rest of Palm Beach County while still retaining its small-town character and relaxed coastal lifestyle.
Stability in the face of uncertainty
The commitment of Palm Beach community leaders, trusted officials, and local professionals in preserving the town’s safety and quality of life has served as its main economic power. Even in turbulent times, where fears of recession and other economic uncertainties arose from erratic political climates on a national and global scale, the Palm Beach real estate market continues to maintain its stability and security while achieving record-breaking milestones.
At the height of the COVID-19 pandemic and its resulting housing market frenzy, Palm Beach was considered the “hottest real estate market in the world”(CNBC), with the average home price reaching more than $7 million during the third quarter of 2020. As we noted in the Frisbie Real Estate end of the year report, the performance of the Palm Beach residential real estate market surpassed the highest expectations in record prices, transactions, and dollar volume.
The highest quality of life
When the pandemic put a pause to life as we know it and ushered in an existential reckoning, quality of life became a primary concern. Many decided to migrate from dense urban cities with high tax rates to serene suburban areas and coastal communities with better tax advantages like Palm Beach.
With telecommuting and remote work becoming the norm, many individuals and families sought residential properties in areas that can accommodate a healthy work-life balance. Safety and security, vast living spaces, walkable neighborhoods, and thriving communities with accessible cultural and recreational amenities became top priorities for many luxury homebuyers, and the high demand for Palm Beach real estate can be attributed to the fact that Palm Beach provides these fundamentals and more.
When discussing the demand for Palm Beach, the numbers speak for themselves. Ending 2020 with an extraordinary 122% year-over-year increase in total transactions and 96% year-over-year increase in total dollar volume for single-family residential properties, the Palm Beach real estate market carried its momentum over to 2021. Residential sales volume for the first quarter shattered records at more than $1.2 billion. Compare that to the same quarter in 2020, which yielded $398 million. In just 12 months, sales of the Palm Beach real estate market increased by more than 300%.
Consistently high market values and investment quality
As the world reopens its borders to travelers while mitigating the effects of COVID-19, US economic prospects look promising, with South Florida and Palm Beach County expected to reap the rewards of these developments.
According to the 2021 Impact Report from the Business Development Board of Palm Beach County, the town of Palm Beach, West Palm Beach, and its surrounding areas continue to sustain demand not only in terms of real estate, but also in terms of corporate relocation and capital investment. With normalcy returning and foreign investors now free to fly to the US, the demand for better homes in locations ideal to living one’s best life will persist.
Given this context, as well as the compelling argument exemplified by its record-breaking metrics, Palm Beach will undoubtedly remain one of the most sought-after and highly valued locations in the United States for the foreseeable future.
VIEW: Palm Beach Real Estate Overview
Palm Beach Luxury Real Estate
Single-family homes
Single-family properties on Palm Beach range from meticulously preserved homes that embody the grandeur of America’s Gilded Age to bespoke modern residences designed by acclaimed architects. You can find impressive estates and elegant homes with Contemporary, Mid-century Modern, and French Contemporary influences, as well as iconic Spanish Revivals and “Old Palm Beach” Mediterranean homes.
Single-family luxury homes for sale in Palm Beach are often located on the oceanfront or the intracoastal waterfront, with direct access to a private area on the beach. Others lie close to the beach and lively central areas like Worth Avenue and the Royal Poinciana Plaza.
Detached single-family homes have a higher value than any other property type on Palm Beach and West Palm Beach. They often come with 4 to 8 bedrooms and 5 to 10 bathrooms. Some properties on the higher end of the price range are known to have features such as separate guesthouses, center courtyards, elaborate tropical gardens, expansive loggias, custom wine cellars and bars, and unobstructed views of the Atlantic Ocean.
Most have a private entry gate, driveway, detached garage, outdoor kitchen and living area, and a pool with a screened loggia or poolside cabana.
Condominiums and Co-op residences
Luxury condominiums and co-op residences are often located at the heart of Palm Beach, with easy access to shopping plazas and boutiques, gourmet restaurants, and cultural centers. But beyond its optimal location, the main highlight of these properties are their waterfront views and access to top-of-the-line community amenities.
Condominium units and co-op housing in Palm Beach usually have 1 to 4 bedrooms and 1 to 5 bathrooms. Typical features include floor-to-ceiling windows, covered balconies facing the waterfront, walk-in closets, and round-the-clock security within the building or compound. Most condo buildings or housing cooperatives in Palm Beach also provide state-of-the-art common areas, laundry facilities, lawn care, exterior maintenance, exclusive parking, and pool and property management services.
Expect these luxury properties to have equally stunning interiors, which often maximize the property’s commanding view of the ocean or the Intracoastal Waterway.
GO ON A VIRTUAL TOUR: Luxury homes for sale in Palm Beach
Palm Beach communities
Palm Beach consists of three distinct areas – North End, Mid-town, and the Estate Section. While all Palm Beach residents enjoy the quality of life that distinguishes this town from other real estate markets in the country, each community has unique benefits. Whether you prefer the serene suburban streets of North End, the dynamic energy of Mid-town, or the opulence and grandeur of the Estate Section, Palm Beach has a community that can match your ideal coastal lifestyle.
North End
North End is an exclusively suburban area in Palm Beach, valued for its family-oriented neighborhoods, private beaches, and quiet streets lined with old Florida trees. Strict zoning restrictions prevent the construction of condos and commercial structures within the community. Thus, North End residents experience considerably less traffic than in any other neighborhood in Palm Beach.
Oceanfront estates and single-family homes dominate this area of Palm Beach. If you like the outdoors, there are plenty of recreational options close by. Cycle down the Palm Beach Bike Trail along the Intracoastal Waterway, drop by the Donald Ross-designed Palm Beach Country Club, check out the exclusive sailing and boating services at the Sailfish Club, and explore the full range of activities at The Beach Club.
Mid-town
Mid-town is known as the “town center” of Palm Beach. It’s home to high-end boutiques, elegant cafés, and art galleries of Worth Avenue and the Royal Poinciana Plaza. Here, historical and artistic sites continue to link past to present, thanks to the work of the Palm Beach Preservation Foundation and The Society of the Four Arts. This area also houses beloved Palm Beach restaurants like Buccan, Café Boulud, Renato’s, and BrickTop’s, as well as prestigious resorts like The Breakers, the Brazilian Court Hotel, and the Colony Hotel.
Owning a property in Mid-town ensures that you are always a stroll away from the livelier side of Palm Beach, with the variety of shopping, dining, and cultural activities available in the area. Moreover, Mid-town has direct access to Flagler Memorial Bridge and Royal Park Bridge, both of which are convenient gateways to all the exciting attractions in Downtown West Palm Beach.
Estate Section
Covering an expanse between Lake Worth and the Atlantic Ocean, the Estate Section is home to palatial oceanfront properties and winter estates of high-profile residents. This highly prestigious location also hosts some of America’s most exclusive resorts and social clubs such as the Mar-a-Lago Club, the Bath & Tennis Club, Phipps Ocean Park, the Palm Beach Par-3 Golf Course, and the Everglades Club.
Let me help you find your Palm Beach luxury property investment
Palm Beach is the pinnacle of coastal living. But navigating its highly exclusive real estate market in search of the right luxury property to invest in can be overwhelming. By getting in touch with my team and I at Frisbie Palm Beach, you can gain access to the expertise and resources you need to find the perfect oceanfront or intracoastal waterfront home in Palm Beach, Florida.
I am Suzanne Frisbie, a licensed broker-associate specializing in Palm Beach real estate since 1989. Having been a longtime resident and professional in Palm Beach, I have intimate knowledge of its geography, architecture, market trends, and property values. Paired with my team of high-end Palm Beach Florida Realtors and extensive network of real estate professionals and resources, I provide my clients great advantages in both acquiring and selling Palm Beach luxury properties.
My analytical and quantitative approach, as well as my nuanced understanding of the real estate landscape and local market value, has helped a long list of high-profile clients in achieving both value-creation and quality-of-life objectives with their properties. These are reflected in my titles:
- #1 agent at Premier Estate Properties’ Palm Beach Office
- #1 Realtor in Palm Beach County
- #1 Realtor in Florida
- #15 Realtor in the USA by Sales Volume in the Wall Street Journal’s 2020 REAL Trends Ranking
READ: Suzanne Frisbie Named Top Agent in Palm Beach and State of Florida
Let me and my team at Frisbie Palm Beach help you find your perfect Palm Beach home today. If you have any questions, feel free to send me a message here, and I would be happy to answer them! You also can call me at 561.373.0941 or send me an email at suzanne(at)frisbiepalmbeach(dotted)com.
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