Stormy Weather for Condo Sales

The one-two punch of increasingly intense natural disasters and the aftershocks of the 2021 Surfside condo collapse have punched major Florida metropolitan areas right in the housing market, with condo prices and sales dropping and insurance and HOA fees increasing astronomically.

So says a new report from real estate brokerage firm Redfin, which notes that Florida’s sellers are the mirror opposite of the national picture, where condo prices are rising, new listings are slowly increasing, and sales have stayed steady.

In Miami, for example, condo prices dropped 3%, sales fell 9%, and new listings increased 27%. Compare that to the Magic City’s single-family home market, where median sale prices rose over 10% from last January, with sales up 9% and new listings up 13%. The cautionary tale, though, is Jacksonville, where the condo market experienced a 7% price drop year-over-year in January, compounded with a 27% drop in sales and a 32% jump in new listings.

HOA issues

As if this wasn’t enough, even just owning a condo is getting more expensive. The average cost of homeowners’ insurance in Florida rose by around 40% in 2023 alone, with HOA fees increasing in price and number. Add in slow demand, and it’s no wonder prices are depressed.

“Condo costs are shocking,” said Juan Castro, a Redfin Premier Agent from Orlando in a report. “Condos that used to have a $400 monthly maintenance fee may now have a $700 fee. It’s causing buyers to rethink their plans.”

There is some good news: condo prices are still higher than pre-pandemic. For now.

Market still reeling from Surfside tragedy

That said, the aftershocks of the 2021 Surfside condo collapse continue to rock the Florida market. New condo regulations require HOAs to regularly assess building safety, but this good deed ends up costing condo owners in both higher maintenance fees (HOAs may be required to charge for maintenance and repairs) and each owners’ percentage of the HOA’s exterior-building  insurance costs.

Worse yet, just getting into a condo is becoming more difficult. Lenders are now determining not just a buyer’s ability to pay not just the condo’s mortgage, but also the constantly rising HOA fees. Plus, lenders are now judging the health of condo buildings themselves.

Once the sale is made, buyers have to purchase homeowner’s insurance in the most expensive state in the union. Florida’s policies cost three times the national average. And it doesn’t look to get any better soon: the growing intensity of hurricanes and other natural disasters already have driven some insurance companies out of the state.

Share this post :

Picture of Den Shewman

Den Shewman

Den Shewman is the former editor in chief of and Creative Screenwriting Magazine. A journalist and corporate writer for the past twenty years, he’s interviewed hundreds of writers and directors and written everything from the first article on the Academy Museum to government proposals for a prison phone company. He resides in Los Angeles with his two cats, who refuse to use the Oxford comma. He may be reached by email
Latest News

Unleash the Power of Knowledge

Stay in the know with our suite of email blasts
Receive the latest news

Gain Access to Exclusive Mortgage Knowledge!

Stay at the forefront of industry developments! By subscribing to MortgagePoint, you’re aligning yourself with the latest insights, updates and exclusive promotions in the mortgage industry. As an industry professional, it’s critical to stay informed and up-to-date. Don’t miss out – subscribe now!