Florida Condo Prices are Falling as Cost of Insurance and HOA Fees Skyrocket, Report Says

(2/26/24)  A new report from real-estate brokerage Redfin found that prices of condominiums in major Florida metropolitan areas are dropping year over year, and sales are declining, with new condo listings soaring as condo owners try to offload their properties.

In the Jacksonville area, for example, the median condo price declined by 6.5% year over year in January, sales declined 27.4% and new listings increased by 32.4%. The story is similar in Miami, where condo prices fell 2.5%, sales dropped 8.7% and new listings rose 27%.

The Florida data differs from the U.S. as a whole, where condo prices are rising, sales are holding steady and new listings are increasing at a much slower rate, Redfin reported.

 “Condos are sitting on the market much longer than they used to, with less interest from buyers,” said Heather Kruayai, a Redfin agent in Jacksonville. “Sky-high HOA costs are pushing buyers out of their monthly budget.”

Home insurance costs are skyrocketing in Florida due to the increasing intensity of hurricanes and other natural disasters, with some insurance companies leaving the state altogether. Homeowners’ insurance costs three times more in Florida than the national average, making it the most expensive state in the U.S. to insure a home, according to Redfin. Insurance costs are passed along to condominium owners through their association assessments.

Condominium association fees are also on the rise due to new legislation in place as a result of the 2021 Surfside condo collapse that requires associations to regularly assess the safety of condo buildings and in many cases collect more money for maintenance, repairs and reserves.

All of these increasing costs are having a chilling effect on the condominium market in Florida, according to the Redfin data.

To read the full Redfin report, visit www.redfin.com/news/florida-condo-prices-dropping.