Luxury Florida Haven Sees Boom in Buyers Seeking Third Homes at More Affordable Prices
Florida’s luxury real estate market is seeing a significant shift as affluent buyers looking to add a sun-drenched home to their portfolio are looking for third homes within a waterfront community known for golfing.
Palm Beach Gardens is “a great location for third-year home buyers,” he said Johnny DelPrete of Douglas Elliman, who lives near Jupiter. “They will have shops, shopping, restaurants, and golf courses.”
Unlike nearby Palm Beach, Manalapan, West Palm Beach, and Jupiter Island, Palm Beach Gardens is not known for the jaw-dropping price tags those areas often command. “It’s a lot cheaper than Palm Beach,” agreed DelPrete.
The most expensive listing in Palm Beach Gardens is $30 million, almost a steal compared to the $50 million and up typically found in those glitzy neighborhoods, with a median price of $944,000 compared to Palm Beach’s $3.2 million.
That makes it an ideal location for those adding a third home to their portfolio. Those with means usually have a primary home, usually in the Northeast; a home in a mountainous ski area, usually in Colorado or Montana; then a third pad in a warm area near the ocean, usually in South Florida.
By the time a high-net-worth buyer lands on their third home, all but the very wealthy are unwilling to shell out tens of millions. And they don’t really want an expensive home that requires a lot of maintenance or labor to keep it running.
“I have the Ritz-Carlton [Residences]it makes it easy to get that white-glove service and not have the responsibility or maintenance,” DelPrete, who also rents out three units in the complex, including a bathroom, tells Realtor.com®.
“The new generation does not want or need that 10,000 square foot house,” he said.
The Ritz-Carlton Residences at 2200 PGA Blvd. and Ellison Wilson Road is a 106-unit project consisting of three buildings. The first ultra-luxe development in the neighborhood, it occupies the last 14 acres of waterfront land in Palm Beach Gardens. Expected to be completed before the spring 2026 deadline, 50% of the residences have already been sold, according to the company.
The Ritz-Carlton (owned by Marriott International) has 20 other properties in the state either open or under development, including North Bay Village, West Palm Beach, Sarasota Bay, Naples, Pompano Beach, Coconut Grove, and Estero Bay, making Florida the brand’s most popular state.
The Palm Beach Garden units, priced from $3.8 million to $10 million, will feature “condo-style” living spaces ranging from 3,400 to more than 6,500 square feet with three to five bedrooms, plus an office/den. There are en-suite guest bedrooms with private balconies and sweeping views of the Intracoastal Waterway. Steps from the complex is a private marina with 29 slips that can accommodate vessels up to 75 feet.
The interior of the unit boasts Italkraft cabinetry, Wolf and Sub-Zero appliances, and Italian ceramic tile work. The development’s amenities include a concierge team, pool and cabana amenities, a waterfront clubhouse lounge, event kitchen, coffee bar, game room, in-house restaurant, pet-friendly and fitness center.
DelPrete says he’s gotten interest from a few serious buyers, usually someone downsizing from a big house in the area—usually Jupiter or Palm Beach—or taking up a third residence.
“There’s the Northeast, and then there’s the snow, the sun, or the international,” DelPrete said of the three places where a high-net-worth person often shops. “New York, Aspen, Montana, Los Angeles, obviously South Florida. Those are the biggest markets and they all match.”
According to the National Association of Home Builders, the state with the largest stock of second homes was actually Florida, accounting for 15.3% of all second homes. California, New York, Texas, Michigan, North Carolina, Arizona, and Pennsylvania followed.
In 2022, the number of second homes was 6.5 million, representing 4.6% of the nation’s homes and a decrease from 2020, when there were 7.15 million second homes.
Although the group does not track third-home ownership, an open estimate would suggest that less than 2.5% of Americans own a third home. DelPrete says the typical consumer has made a fortune in technology, finance, private equity, or owns a successful business.
As a professional golfer, DelPrete is uniquely qualified to serve golfing customers in this area.
“It helps if they know you can speak their language,” he said. “Of the 10 best golfers in the world, five live locally. I’m representative enough [pro golfers] that they feel comfortable working with me.”
While DelPrete won’t mince words, pro Greg Norman lives in Palm Beach Gardens, having purchased a $12.2 million mansion in 2021, one day after selling his longtime mansion in Jupiter for $55.1 million.
Fifteen minutes north of Jupiter, a bunch of bold-faced names, like Tiger Woodshave homes. It’s not just the cool weather that attracts them, but world-class golf courses like The Bear’s Club and Medalist Golf Club. A five-minute drive from the new Ritz-Carlton Residences is the North Palm Beach County Club.
“If you’re looking for luxury living and white-glove service in this area, look no further,” DelPrete said.
