MIAMI—When it comes to condos, developers have largely targeted foreign investors with cash to buy. But the trend is a little different in the single-family home market.

So says Mike Nunziata, division president of Central Communities, a subsidiary of 13th Floor Investments. We caught up with Nunziata to discuss the advantages of attracting the end-user over investors for housing product and more in part two of this exclusive interview. You can still read part one: Miami's Hottest (Old) Real Estate Trend.

GlobeSt.com: What do you see as the advantages of attracting the end-user over investors for housing product?

Nunziata: Both end-users and investors are critical to the creation of a healthier market economy. But for single-family homes, particularly those in master-planned communities, there is an added value to attracting end users given the concept of building and establishing a sense of community. 

Central Communities specifically focuses on marketing to these end users—so far, every buyer within Central Parc has moved into their home on a full-time basis. This is because home buyers are looking for more than just long-term stability; they are looking to raise families, meet neighbors, and be a part of something bigger than themselves. 

GlobeSt.com: When it comes to financing, are single-family home buyers generally able to borrow more than condo buyers?

Nunziata: Yes, traditionally single-family home buyers have been able to borrow more than condo buyers, with a lower threshold for down payment. This is largely why we are seeing such a different buyer base for these different products. In today's cycle, some buyers can purchase a single-family home for less than 10% down, whereas condo buyers are expected to provide a down payment of 50% on average prior to the completion of their unit. 

GlobeSt.com: Geographically speaking, which South Florida submarkets are seeing the most development activity and why?

Nunziata: Most activity is taking place in South Dade or in the western stretches of Palm Beach County—true suburbs that are further away from the largest employment centers. Central Communities has taken a different approach by targeting locations near employment hubs because we understand that buyers want to be near where things are happening. 

As housing becomes more affordable than renting, young professionals are turning to home buying but don't want to sacrifice the convenience of being in a centralized location.  Developers will need to get more creative in how and where they build to accommodate this growing demand.