While Florida’s coastal condo markets are seeing price declines, inland Florida’s median condo sale price rose 5.4% year over year in January, according to a new report from Redfin. This contrasts with a 4.8% price drop on the Gulf Coast and a 3% decline on the Atlantic Coast. The inland market is holding up even better than its single-family home segment, which saw a 3.7% price increase in the same period.
Why Are Inland Florida Condos Holding Their Value?
One of the biggest factors keeping prices steady inland is affordability. Insurance costs are significantly lower compared to coastal areas, leading to more manageable HOA fees and monthly payments for condo owners. Inland condos also tend to be newer, meaning they have not yet had to comply with strict new state regulations that have driven up maintenance costs for older buildings.
“Insurance is much cheaper inland than on the coast, which leads to lower HOA fees and more affordable monthly payments for condo owners,” said Christopher Maggart, a Redfin Sales Manager in Orlando.
After the 2021 Surfside condo collapse, Florida enacted a law requiring inspections for buildings three stories or taller once they reach 30 years old. Many coastal buildings have been hit with major assessments to meet these safety regulations, causing HOA fees to surge. Inland Florida’s condo stock is generally lower-rise or newer, avoiding these steep costs for the time being.
HOA Fees Rising, But Still More Affordable Inland
Despite their relative affordability, HOA fees in inland Florida have been increasing. Tallahassee, for example, has the lowest median HOA fee among the 23 Florida metros analyzed at $250, but that represents a 25% year-over-year increase. Other inland cities like Ocala ($300) and Gainesville ($346) also have relatively low fees.
For comparison, Miami’s median HOA fee is a staggering $965 per month. Coastal areas also face ongoing hurricane repair costs, which further drive up HOA fees. Only 4.8% of inland condos face high flood risk, compared to 59.4% on the Gulf Coast and 45.7% on the Atlantic Coast.
“A lot of homeowners associations on the coast are still paying for hurricane damage from years ago,” said Juan Castro, a Redfin Premier Agent in Orlando.
Inland Florida Leads in Condo Inventory Gains
With rising HOA fees and looming inspections, some inland condo owners are opting to sell. Condo inventory in inland Florida surged 37.5% year over year in January, compared to 27% on the Atlantic Coast and 19.2% on the Gulf Coast.
Despite the increase in listings, sales are slowing. Condo sales in inland Florida dropped 15.9% year over year, compared to a 7.8% decline on the Gulf Coast and 6.9% on the Atlantic Coast.
Buyers Have Options, But Many Are Hesitant
With inventory rising and sales lagging, many inland condos are sitting on the market for months.
“Buyers have so many options that they’re overwhelmed,” said Castro. “A lot of condos just aren’t selling. They’ll sit on the market for 200 days, go off the market, and come back on later for a lower price.”
However, the best properties are still attracting buyers, often with multiple offers. The market is slow, but the properties that do sell are holding their value better than their coastal counterparts.
Looking forward, as more inland condo buildings approach their 30-year inspection deadlines, the market could see further shifts. At least for now, lower insurance costs, fewer regulatory burdens, and newer construction are keeping prices afloat in Florida’s inland condo market.
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