Something unexpected is happening in Sarasota’s luxury real estate market. While much of Florida grapples with inventory challenges and buyer hesitation, Vlado Konatar of Kona Realty is seeing a demographic shift that signals a fundamental change in who’s buying high-end properties and why.

“We’re seeing a lot of younger buyers, in their early 30s to early 40s, coming from California and New York,” Konatar explains. “They’re paying all cash for properties in the $2 to $5 million range. This wasn’t the typical Sarasota buyer profile even a year ago.”

The trend is pronounced enough that Konatar is currently working with a California celebrity looking to relocate, with a budget stretching to $5 million. These aren’t retirees or snowbirds. They’re young families seeking a specific lifestyle that Sarasota offers and other Florida markets don’t.

“Sarasota is its own little world within Florida,” Konatar notes. “If you look at the last 100 years, the families that built this city were incredibly wealthy. Those families have maintained that wealth for generations and will likely continue for the next century. New buyers aren’t just purchasing property, they’re buying into a lifestyle centered on culture, beaches, and a refined downtown experience.”

This distinction matters. While markets built primarily on recent development cycles struggle to differentiate themselves, Sarasota’s established cultural infrastructure, from its century-old opera house to its arts scene, creates a different value proposition. Buyers who move here tend to stay and bring their networks with them.

The shift has created an interesting supply problem. Konatar sold out his entire inventory in November and December, ahead of the traditional spring market. “We worked hard all year to build substantial inventory for the season. By November, everything was gone. Now I’m back to square one, trying to source 10 to 20 properties monthly just to keep up with demand.”

The demand isn’t evenly distributed across property types. While single-family new construction flies off the market, often selling before hitting MLS, the condo sector faces significant headwinds. Insurance rate increases, sometimes tripling or quintupling year over year, combined with uncertainty following structural issues in Miami, have created hesitation among condo buyers.

“I’ve had multiple calls from condo owners asking what to do,” Konatar says. “The conversation is always the same: price it well, make necessary repairs, market aggressively, and wait for the right buyer. When buyers see the HOA breakdown and predictions for next year, they get scared. I don’t blame them.”

This dynamic has pushed buyers toward single-family homes with amenities that traditionally existed only in luxury condo buildings. Konatar’s projects now routinely include saunas, cold plunges, putting greens, basketball courts, and pickleball facilities.

“Buyers coming from the condo world expect a certain level of amenities,” he explains. “We’re filling that need in single-family format. When they see what we’re offering, the question becomes: why would I deal with HOA issues when I can have all of this to myself?”

The psychology around interest rates also plays a role, though not in the way most people assume. “Last year, buyers were earning 5% interest just keeping cash in the bank,” Konatar points out. “Once rates drop, that return disappears. Suddenly, real estate starts looking more attractive as a place to deploy capital. About 95% of our deals last year were cash transactions, so the rate itself didn’t matter. But the psychology around rates definitely influenced timing decisions.”

Looking ahead to 2026, Konatar expects the market to build on last year’s 5% increase. He’s particularly optimistic about entry-level single-family homes in the second and third quarters of the year. But the luxury new construction segment, especially properties offering something unique and custom, will likely continue setting the pace.

“We still don’t have the inventory of truly beautiful custom homes that you’d find in California or Miami,” Konatar says. “But we’re getting there. In the next five years, I think we’ll be able to compete at that ultra-high-end level. For now, anything that’s truly custom and different sells in days or weeks instead of months.”

The combination of demographic shifts, lifestyle-focused buyers with substantial capital, and limited inventory of the right product suggests Sarasota’s luxury market is writing a different story than the broader Florida narrative. For agents and developers paying attention, the opportunity is clear: young, wealthy buyers want properties that can’t be replicated, and they’re willing to pay cash to secure them.

Vlado Konatar is the founder of Kona Realty Group, a Sarasota-based firm specializing in luxury new construction and high-end residential real estate. With over 11 years of experience in the Florida market, Konatar works closely with developers on projects throughout the Sarasota area. Learn more at konarealtygroup.com.

Disclosure: Individuals or companies mentioned may have a commercial relationship with KeyCrew.

This contant was orignally distributed by Keycrew.co. Blockchain Registration, Verification & Enhancement provided by NewsRamp™. The source URL for this press release is Vlado Konatar: Why Sarasota’s 30-Something’s Are Paying Cash for $2M-$5M Homes.