MIAMI—Luxury condo developments—including star-powered projects with never-before-seen amenities and the prices that go along with them—have dominated South Florida real estate headlines this cycle. At the same time, concerns over affordability in the region loom large and condo sales figures plateau, which is sparking a rising demand for single-family homes.

The Miami market alone saw a 10% year-over-year spike in single family home sales last month, according to the Miami Association of Realtors. That actually outpaces condo sales, which grew at 4.2%

Given South Florida's tight land constraints—bounded by the ocean on the east and the Everglades on the west—developers are challenged to find empty land that's ripe for large-scale home development and are instead turning to infill sites to meet mounting demand. Mike Nunziata, division president of Central Communities, a subsidiary of 13th Floor Investments, is seeing developers race to snap up infill sites in Miami-Dade and Broward.

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