In a recent study, troubling news has emerged from Florida’s thriving condominium sector. Owners are facing crippling financial demands and struggling to sell their condos in a wavering market. The study, conducted by a nonpartisan research-focused organization spearheaded by former Senator Jeff Brandes, found that condo listings among properties that are 30 years old or older are surging. The buyer market is also weak, with individuals facing difficulties in securing financing for units that do not meet current codes.
The New Condo Law and its Consequences
The study points to new requirements passed by the Legislature in 2022, following the tragic Surfside condo collapse. These include increased assessment demands and reserve funding. While these laws were introduced with the intention of ensuring safety, they have inadvertently created new problems. Condo associations are now required to set aside more money for condo maintenance and repairs. As a result, owners are facing steep, often unsustainable assessments on their properties. To illustrate, a Redfin analysis found a 15% increase in homeowners association fees in Tampa and Fort Lauderdale from 2023 to 2024.
Some condo owners have been hit with six-figure assessments. An example is a 79-year-old owner who was faced with a $224,000 special assessment, on top of monthly maintenance fees that had already doubled from $1,500 to $3,000 per month.
A Pause by Investors and Legal Concerns
Adding to the problem, investors who could potentially alleviate the issue are hesitant to invest in aging condo buildings due to legal concerns. For instance, Two Roads Development acquired all but eight of the 192 units at Biscayne 21, a 13-story residential condo tower in Miami. However, the owners who refused to sell sued the developer, leading to other large developers holding off on taking any risks.
The report found that listings for condos built over 30 years ago have surged 56% year-over-year. Florida is home to about 1.1 million condo units, with 58% of them located in just eight counties. In Miami-Dade, nearly 65% of the condos are in the older category, and most of these are located along the waterfront.
Impact on Affordable Housing
Before the 2022 legislation, condos were considered a viable affordable housing option in some cases. In Miami-Dade, half of all condo units sold in 2024 were priced below $300,000, highlighting one of the few options for buyers in this price segment. However, the new law and the hefty assessments that often come with it have changed this. The report states that the existing older condominiums, especially those that need massive repairs and remediation, no longer present a viable solution for affordable housing.
The report’s release is timely. It came out just days before Governor Ron DeSantis announced that he would call a Special Session to address post-Surfside condo safety costs. The Special Session will convene on Jan. 27 to address, in part, condo cost issues. The report could offer some insight into the problem, beyond just impacts to owners. The affordable housing issue, for example, could be a topic worth considering, especially as Florida continues to face an affordability crisis.
“We are looking at a combination of deferred maintenance, skyrocketing repair costs, and regulatory hurdles that could push many condo owners toward financial ruin,” Brandes wrote of the report. “If we don’t take action now, we risk destabilizing entire communities.”
The second part of the report, due out next month, will offer actionable solutions. “From expanding the pool of qualified inspectors to rethinking repair funding and insurance mechanisms, we are committed to finding practical solutions that will protect condo owners and residents,” Brandes noted, urging state leaders to act urgently.
