New Construction in North Bay Village: What Buyers Should Know

North Bay Village is a small municipality on three islands in Biscayne Bay, connected by the 79th Street Causeway between Miami and Miami Beach. Buying new construction there means weighing island-specific factors such as flood risk and causeway access, along with the usual new-home questions about deposits, inspections and warranties. This is general information, not legal advice, and a Florida real estate attorney should review any builder contract before you sign.

The three islands

According to Wikipedia, North Bay Village consists of Harbor Island, North Bay Island and Treasure Island, and it was incorporated on August 1, 1945. North Bay Island developed as a neighborhood of single-family residences, Harbor Island is predominantly multi-family buildings, and Treasure Island is mixed, with single-family homes on its western end and multi-family dwellings on its eastern end. Construction since 2000 has also included high-rise condominium buildings.

That mix matters if you are shopping for a new home, because a new single-family house, a townhome and a condo carry different costs and rules. Identify the property type and what governs it before you compare prices. For the wider picture, see the North Bay Village area guide.

The 79th Street Causeway

The islands connect to the mainland by SR 934/NE 79th Street, also called the John F. Kennedy Causeway, and the Florida Department of Transportation says the road provides connections to North Bay Island, Harbor Island and Treasure Island and serves as part of the emergency evacuation route network for the beaches.

FDOT has also studied replacing four existing bridges, in two pairs, along the route because of structural deficiencies, and it describes plans for improved shoulders, bicycle lanes and sidewalks. FDOT's project page says the study began in August 2022 and held a public hearing on May 13, 2024. Project timing can change, so check FDOT's current information if road work could affect your commute.

Flood risk and insurance

The Village describes itself as three low-lying islands and says that, according to FEMA, it is in an area with moderate to high flooding risk from heavy rainfall, annual king tides and stronger storms. It points residents to FEMA's map portal to learn which flood zone a property is in, and it provides a public flood website with property-level data.

Practical steps for a buyer:

• Look up the property's FEMA flood zone, and ask the seller or builder for an elevation certificate if one exists.
• Get flood and wind insurance quotes before you finalize your contract, not after.
• Remember that FEMA's FloodSmart says a new flood policy generally takes effect 30 days after purchase, with exceptions such as a purchase tied to a mortgage.
• Ask the Village Building Department what it can explain about flooding and flood protection levels.

Buying new construction: the builder contract

Builder contracts are written by the builder and are often negotiable, so have an attorney review yours before you sign. Points to look for:

• Deposits. Florida Statutes 501.1375 requires a builder's contract for a one- or two-family dwelling to state that the buyer has the right to have deposit funds, up to 10 percent of the purchase price, held in escrow, and that this right may be waived in writing. Withdrawals from the escrow account require signatures from both the builder and the buyer or the buyer's agent. Think carefully before waiving the right.
• Price and finishes. What is included, what is an allowance and what is an upgrade, and how change orders are priced.
• Timeline. The estimated completion date, what counts as completion and what happens if it slips.
• Financing and appraisal. Whether the contract protects you if financing or the appraisal falls short.
• Walk-through and punch list. How and when defects are listed and corrected before closing.

Costs beyond the price

Plan for costs that sit outside the contract price: insurance for a newly built home, property taxes, closing costs, and any furnishing, landscaping or window treatments. Ask the property appraiser or a CPA how the finished home will be assessed, because the lot's prior assessment may not reflect the completed house. If the home is part of a condominium or an association, request the budget and documents too, since dues and assessments are a recurring cost.

Inspections and permits

New doesn't mean defect-free, so hire an independent licensed home inspector, ideally before closing and with time left to have items corrected. Then confirm the paperwork. The Village Building and Zoning Department says it ensures work meets the Village code and the Florida Building Code, and it provides a Certificate of Occupancy checklist and application package. Ask your attorney or title agent to confirm that the permits are closed and a certificate of occupancy has been issued.

Warranties and time limits

Ask the builder for the written warranty before you sign: what it covers, for how long, how to submit a claim and who responds. Separately, Florida limits how long a claim over a construction defect can be brought. Under Florida Statutes 95.11, an action over the design, planning or construction of an improvement generally must be brought within 7 years after the earliest of a temporary certificate of occupancy, a certificate of occupancy, a certificate of completion or abandonment of construction. Chapter 558 also requires a written notice of claim at least 60 days before filing an action over a construction defect in most cases. An attorney can explain how these rules apply, and you should keep your inspection reports, photos and correspondence.

New construction in the village

Jessica's listings with The Bograd Team include 7516 Bounty Ave, new luxury construction on the islands, and 7509 Buccaneer Ave, a waterfront new-construction home listed as coming soon. Availability and prices change, so contact Jessica for current information. If you are comparing a new home with a condo, read our condo versus single-family cost guide.

Talk to Jessica

Jessica Sonino is a Florida Realtor with The Bograd Team, based in South Florida. If you are considering new construction on the islands, contact Jessica to talk through a property and the questions to ask the builder, and see how she works with buyers on the buy page.