Florida condo listings have skyrocketed as desperate homeowners try to circumvent a costly new law requiring tighter security controls.
The legislation was passed following the 2021 collapse of the Champlain Tower South in Surfside, which killed 98 people.
It later emerged that the condo association had postponed crucial repairs to avoid increasing costs, prompting lawmakers to introduce new regulations that will take effect at the end of the year.
As a result, the number of condos on the market has skyrocketed, especially in South Florida, prompting warnings of a “mass exodus.”
As of the second quarter of 2024, there were 20,293 condo listings in Palm Beach, Broward and Miami-Dade counties, ISG World reports.
Florida condo listings have skyrocketed as desperate homeowners try to get around a costly new law requiring tighter security checks.
This figure represents an increase of 143 percent compared to the 8,353 for the same period last year. Nearly 90 percent of the homes for sale are properties that are more than 30 years old.
Under the new guidelines, condos older than 30 years or larger than three stories will require stricter inspections starting Dec. 31.
The cost of insurance and Homeowners Association dues to cover special assessment requirements has also increased.
“Condo costs are alarming,” said Juan Castro, a Redfin Premier agent in Orlando. “Condos that used to have a $400 monthly maintenance fee can now have a $700 fee. This is causing buyers to rethink their plans.”
Arkadiy Kats, 71, already pays $340 a month for a special assessment and $897 a month for monthly condominium association fees.
It is expected to add an additional $731 million to the reserves starting next year.
He has made the decision to return to work as a real estate agent to help cover costs.
“I can’t retire because I don’t have money for food, car insurance, gas,” Kats said. The Miami Herald‘All of these payments (homeowners association, reserves, special assessments) come from my Social Security.’
Arkadiy Kats, 71, is among the condo owners hoping to sell before the new regulations.
Tighter security controls are driving up homeowners association fees, prompting many to sell
Craig Studnicky, CEO and broker at ISG World, said he is “very concerned” about the state of the condo market right now, describing the situation as Newsweek Magazine as “a mass exodus driven by fear, with retirees caught in the crossfire.”
“A lot of the people living in these buildings are older, most are retired and on fixed incomes,” Studnicky said. NBC.
“They don’t want to sign those special contribution checks. They hope someone will come along and buy them, but there’s no one willing to take that risk right now.”
‘Condo owners in older buildings are rushing to sell before physical examinations begin that could reveal structural defects, but they are already late to the party.
“We’re seeing a flood of 30-plus-year-old units on the market, and buyers are staying away.”
Condo prices are starting to fall as buyers look to get rid of them. In June, a typical Florida condo was priced at $316,700 according to Redfin, down 1.5 percent from a year earlier.
Listings on Zillow show condos with discounts of up to $15,000.
Meanwhile, the number of units sold has plummeted by more than a quarter over the past year.
In the second quarter of 2024, there were 20,293 condos for sale in Palm Beach, Broward and Miami-Dade counties, ISG World reports. Pictured is a Palm Beach condo for sale with a $10,000 discount.
Under the new guidelines, condos older than 30 years or larger than three stories will require enhanced inspections starting Dec. 31.
Former Republican Sen. Jeff Brandes, who heads the Florida Policy Project, urged Gov. Ron DeSantis to act.
‘The Florida Legislature has created a catastrophic situation and must urgently hold a special session, as recommended by Governor Ron DeSantis, to address this man-made crisis.
‘Real estate experts are warning of an unprecedented surge in condo listings in Florida due to crippling special assessments, forcing desperate homeowners to sell.
Lawmakers must take immediate action to alleviate this crushing financial burden, which will bankrupt Floridians, especially our seniors, to protect condo owners from this state-sanctioned and state-induced disaster. This is not a drill!