South Florida New-Construction Market Report: Q3 2026

If you're thinking about buying a new home in South Florida, the third quarter of 2026 had one headline: mortgage rates climbed, and sales softened with them. Prices mostly held, sales were flat to slightly lower, and builders reported leaning harder on discounts and incentives.

This report puts the numbers behind that, county by county, in plain English. It covers the third quarter (July to September 2026), plus the latest readings available through October 23.

The quarter in numbers

Mortgage rates: the story of the quarter

Rates moved the wrong way for buyers. Freddie Mac's weekly survey put the 30-year fixed rate at 6.71% on September 3, which was already above the 6.50% of a year earlier. By late September it was past 7%, and in October it reached 7.40%.

Florida Realtors' chief economist said rising rates are the biggest story for the housing market: "Higher mortgage rates are weighing on sales, particularly in the single-family market."

Why this matters for new construction. A new home can take a year or more to finish, so your rate matters twice: the rate you lock and the rate on the day you close. Ask the builder how long a lock lasts, what an extension costs, and whether a rate buydown is offered. Our guide to builder incentives vs. outside lenders shows how to compare offers.

Prices and sales by county

Single-family prices rose in most of South Florida compared with a year earlier. St. Lucie County was the exception, slipping slightly.

Sales were close to flat over the quarter. Adding up the three monthly reports, single-family closings were within about 4% of last year in every county.

Statewide, Florida Realtors reported 65,904 single-family closings in Q3, up 0.2% from a year earlier, at a median price of $420,000 (up 2.4%). Condo and townhome closings rose 3.1% to 22,664, with a median price of $295,000, unchanged from last year.

County by county: single-family homes, September 2026

County by county: townhomes and condos, September 2026

How much is for sale

A common rule of thumb treats about six months of supply as a balanced market: fewer months favors sellers, more favors buyers. Single-family supply is below that mark in all five counties, while condo supply is above it in all but Martin. Supply fell from a year ago in every county.

Single-family homes also went under contract faster than a year ago in Miami-Dade (41 days vs. 50), Broward (39 vs. 48), Palm Beach (43 vs. 51) and Martin (39 vs. 62). St. Lucie went the other way (52 days vs. 44).

Builders: confidence, discounts and incentives

The National Association of Home Builders surveys builders every month. Its index runs from 0 to 100, and a reading under 50 means more builders see conditions as poor than good. It was already low in June and kept falling through the quarter. The index covers the whole country; the South region read 30 in October, down from 31 in September.

Builders are responding with discounts and incentives rather than only headline price cuts:

Source: NAHB/Wells Fargo Housing Market Index. National figures; we did not find the September reading in a source we could check.

What this means for you. Incentives such as closing-cost credits, rate buydowns and upgrade packages are common right now, so ask about them, and read the conditions. Many require a particular lender or closing date. Our contract checklist explains what to look for in the fine print.

What's being built

Builders are starting more homes in the South than a year ago, but finishing fewer. That matters if you're buying a home that's already built, because the supply of ready homes may be thinner than the supply of homes in the pipeline.

Florida's own permit counts for September show where building is happening. These are all new residential permits in the state.

In our counties, HBW counted 237 permits in St. Lucie and 104 in Palm Beach for the month. We did not find September figures for Miami-Dade, Broward or Martin in a source we could check.

Insurance: some relief

Home insurance is part of your monthly cost, and in Florida it can decide whether a payment works. This year brought some relief:

• On September 22, the state insurance regulator announced approved rate cuts at four insurers: 10.4% (Vyrd and One Alliance), 4.1% (Safe Harbor) and 3.2% (Unique), covering about 62,700 policies. Cuts apply at renewal.
• The average homeowners premium among admitted private insurers is $3,736 a year, including wind coverage. Citizens and surplus-lines insurers are not included in that figure.
• Kin Insurance reported average homeowners rate cuts above 20% in Broward, Miami-Dade and Palm Beach counties. That is the insurer's own report, and your quote can be higher or lower.

Newer homes are often built to current codes, which can matter to insurers. But your quote depends on the address, the construction details and the insurer, so ask for a quote before you sign a contract, not after.

What this means if you're buying new construction

1. 1Plan around the rate, not only the price. Run your budget at today's rate and at a rate half a point higher, and ask how long the builder's rate lock lasts.
2. 2Ask for incentives, and compare them. With builders reporting discounts and incentives at high levels, it's reasonable to ask what's available on your home and your closing date.
3. 3Check the conditions. A credit that requires the builder's lender or a fixed closing date can cost more than it saves.
4. 4Think about move-in-ready homes. Completions are down, so ready homes may be less plentiful. If you need one soon, ask each community what's finished or nearly finished.
5. 5Be careful with condos. Supply is high and prices are uneven. Read the HOA budget and any special assessments before you buy.
6. 6Get insurance quotes early. The rate cuts are encouraging, but they don't apply to every insurer or every address.
7. 7Have the contract reviewed. Rates and delays shape how risky a long build is. See our contract checklist.

Where this data comes from, and its limits

• County sales, prices and supply: Miami Realtors South Florida Market Stats for July, August and September 2026, with year-over-year changes as published. These cover all home sales, not only new construction. The page does not define "days to contract."
• Quarterly closings: The sum of the three monthly closed-sales figures, added together by Casera Haus. Medians are not averaged, so we show September medians rather than a quarterly one.
• Statewide: Florida Realtors, release of October 16, 2026.
• Mortgage rates: Freddie Mac Primary Mortgage Market Survey (September 3 and September 24 releases); October readings as reported by Trading Economics.
• Builder confidence: NAHB/Wells Fargo Housing Market Index (July, August and October 2026 releases).
• Construction: U.S. Census Bureau, New Residential Construction, September 2026; HBW residential permits, September 2026.
• Insurance: Florida Realtors, September 24, 2026, reporting the Florida Office of Insurance Regulation and Citizens Property Insurance Corporation.

Numbers are rounded and can be revised. We have not tried to predict where rates or prices go next, and nothing here is legal, tax, lending or insurance advice.

Frequently asked questions

Is it a good time to buy new construction in South Florida?

That depends on your budget, your timeline and your rate, not on one quarter's numbers. What the Q3 data does show is that sales are roughly flat, rates are higher, and builders report using more discounts and incentives, which gives buyers something to negotiate with.

Are builders really cutting prices?

Nationally, 43% of builders reported cutting prices in October, with an average cut of 6%, and 65% reported using incentives. That is a national survey, not Florida alone, and results differ by builder and community.

Why are mortgage rates so important for a new home?

Because the gap between signing and closing can be long. If your rate isn't locked for the whole build, or your lock runs out, you could close at a higher rate than you planned for. Ask the builder and your lender how locks and extensions work.

Are home prices falling in South Florida?

Not broadly. In September, single-family medians were higher than a year earlier in four of five counties we cover. Condos were mixed, with large swings in Broward and St. Lucie, and a single month can mislead.

Does this report include new-construction-only prices?

No. The county sales figures cover all homes sold. We use builder, permit and construction data to describe the new-construction side, and we'll say so whenever a number is not specific to new homes.

Your next steps

1. 1Decide your budget at today's rates, with a cushion.
2. 2Ask each builder about incentives, their conditions and rate locks, in writing.
3. 3Get a home insurance quote for the address before you sign.
4. 4Read the contract checklist and our complete guide to buying new construction.
5. 5Book a free 20-minute consultation and we'll help you compare communities across the five counties.