The assumption that beachfront proximity automatically commands a price premium is one of the most persistent beliefs among out-of-state buyers entering South Florida’s coastal condo market. In specific corridors of Broward County, that assumption is demonstrably backward.
Heidi Cherry, a realtor with LoKation Real Estate who covers the east Broward beachfront market from Highland Beach to Fort Lauderdale, argues that supply density – not waterfront access – is the primary driver of per-square-foot pricing in several key submarkets. With elevated inventory across South Florida’s beachfront condo market and buyers gaining more negotiating power, understanding where supply compresses prices has become especially important. The result is a counterintuitive pricing map that rewards buyers who study the data and penalizes those who rely solely on location assumptions.
More Supply, Lower Prices
Cherry’s argument centers on a supply dynamic that out-of-state buyers rarely factor into their search. In Pompano Beach, a dense concentration of oceanfront high-rises means hundreds of units compete simultaneously for the same pool of buyers. “There are bargains out there where you can get oceanfront property for less than you can get in Deerfield,” Cherry says. “Why? Simply math. There are so many more apartments in Pompano right next to one another, one tall building next to another.”
Deerfield Beach, by contrast, has far fewer oceanfront apartment buildings. With less competing inventory, sellers in Deerfield can hold firmer on price. A buyer seeking oceanfront access may actually pay more per square foot in Deerfield than in Pompano – despite Pompano’s larger and more developed beachfront.
The Hillsboro Beach comparison is even more striking. Although many buyers perceive Hillsboro Beach as exclusive, a concentration of older oceanfront buildings creates enough competition among sellers to push per-square-foot prices below those in Deerfield Beach. “Per square foot, you can buy a property for less money in Hillsboro Beach than you can in Deerfield Beach,” Cherry says. “You would not believe that.” The same supply logic applies – more oceanfront buildings mean more competition among sellers, which compresses pricing even in a market with an upscale reputation.
The Buyer Misconception
Cherry says this pricing reality is almost entirely invisible to buyers arriving from other states, who tend to anchor on the idea that oceanfront equals premium. That misconception operates on two levels. First, buyers assume that any oceanfront purchase is a sound investment by virtue of location alone, without accounting for building-specific risks, HOA financial health, or assessment history. Second, they expect price appreciation to be rapid and predictable – an expectation Cherry says the data does not support.
Many out-of-state buyers arrive believing they will find a bargain and see quick returns. Cherry pushes back on that directly. “The biggest misconception is that they think they’re going to wind up buying something for very little money, and they’re going to make a fortune right away,” she says. “It takes time to make money.”
The current market makes these distinctions especially relevant. Cherry describes the broader beachfront condo market as favoring buyers, with elevated inventory and meaningful room for negotiation. Properties priced based on valuations from two or more years ago are sitting. “If you’ve got a property that’s priced correctly, it is going to sell in a hurry, because people are knowledgeable and they will recognize a deal,” she says. Overpriced properties – even oceanfront ones – are accumulating days on market at rates that would have been unusual in recent years.
What Data Reveals
The pricing divergence between Deerfield, Pompano, and Hillsboro Beach illustrates how South Florida’s beachfront market actually functions at the micro level. These communities sit within a few miles of each other, share similar climate and amenity profiles, and all offer genuine oceanfront access. Yet their per-square-foot pricing varies significantly based on factors unrelated to the beach’s quality or the view.
Within Deerfield Beach itself, the limited supply of oceanfront properties creates a specific opportunity for investors targeting older units. Because fewer buildings compete for buyers, well-renovated units in Deerfield may hold their value better than comparable renovations in higher-supply corridors like Pompano. Cherry notes that identifying and improving older units is one of the clearer paths to capital appreciation in that submarket.
Cherry’s approach to buyer education involves providing detailed comparable analysis across multiple submarkets before a client commits to a search area. Her view is that buyers who understand supply dynamics are better positioned to identify genuine value – and less likely to overpay based on the assumption that oceanfront location alone justifies any asking price. Other agents and firms across Broward County offer similar submarket analyses, but Cherry’s emphasis on supply density as the primary pricing lever runs counter to most buyers’ instincts.
As out-of-state buyer activity in South Florida’s coastal condo market holds steady, the gap between buyers who grasp these micro-market dynamics and those who do not will likely determine who captures real value – and who simply pays a location premium. The numbers don’t support.
About the Expert: Heidi Cherry is a Realtor with LoKation Real Estate specializing in beachfront and waterfront properties along the east Broward corridor in South Florida, covering communities from Highland Beach to Fort Lauderdale. Her practice spans residential sales and investment properties across oceanfront and waterfront segments.
This article is intended for informational purposes only and does not constitute legal, financial, or investment advice. The views and opinions expressed herein reflect those of the individuals quoted and do not represent an endorsement of any company, product, or service mentioned. Readers should conduct their own due diligence and consult qualified professionals before making any investment decisions.