Condo Sales Plunge Amid Rising Costs and New Legislation

Florida CondosPhoto byTim EngleonUnsplash

Aging buildings, soaring HOA (Homeowners Association) fees, and insurance costs driven by a warming climate are making owning a condo less and less desirable. Spurred by the collapse of an aging condominium, Champlain Towers South, in 2021, new legislation "requires condominium boards to set aside sufficient reserve funds to pay for major repairs and conduct a study of the reserves every decade."

The legislation now also requires construction to begin within a year if structural repairs are needed.

Homeowners Association Fees covers necessities like utilities, water, cable television, landscaping and shared amenities. These costs are in addition to property taxes and insurance.

Thousands more condominiums are listed for sale than just a year or two ago. As aging buildings are replaced, costs may stabilize somewhat as maintenance costs drop.

There are lots of advantages to living in a condo, no yard work, the ability to lock the door and leave, and relative safety from storms and flooding. It remains to be seen whether buyers will still think so.