Countless retirees — and plenty of other folks — dream of owning a condo in Florida. But a cloud is darkening these visions of endless days of sun and fun.
A combination of skyrocketing insurance costs and surging homeowners association fees is making Florida condos less attractive in 2024. As a result, condo prices in the Sunshine State are now falling, according to a report from Redfin.
As both prices and sales decline, condo owners are rushing their units to market in hopes of offloading them quickly.
The trend is evident in multiple major Florida metros, including:
- Jacksonville: The median condo price in the city fell about 7% year over year in January 2024 and sales plunged 27%. On the other hand, new listings surged 32%.
- Orlando: The median condo price fell about 5% year over year and sales fell by 7%. New listings jumped 23%.
- Miami: The median condo price slipped about 3% year over year and sales fell by 9%. New listings jumped 27%.
Last year, homeowners insurance costs in Florida shot up by about 40%, on average. Now the Sunshine State is the most expensive U.S. state in which to insure a home.
Homeowners association (HOA) fees are also rising rapidly in Florida. In a summary of Redfin’s findings, Juan Castro, a Redfin Premier agent in Orlando, says:
“Condo costs are shocking. Condos that used to have a $400 monthly maintenance fee may now have a $700 fee. It’s causing buyers to rethink their plans.”
Redfin notes that HOA fees are climbing due to new condo regulations that went into effect this year. HOAs now must monitor the safety of condo buildings and perform any needed maintenance and repairs. That often means collecting more cash from condo owners.
The new rules were a response to the well-publicized 2021 collapse of a 12-story condominium building in the town of Surfside, Florida, which killed 98 people.
As HOA dues have climbed, it has become more difficult to secure a mortgage for condos in Florida, Redfin says. Lenders want to make sure borrowers can afford the higher HOA fees.
In addition, lenders are now even more careful to make sure a condo community is in strong financial health before approving a loan.
Although the condo market is struggling in Florida, single-family homes continue to attract buyers.
In Miami, the median sales price of single-family homes was up by double digits year over year in January, Redfin says. Sales were also 9% higher.
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