Several popular retirement spots in Florida have been hit by increases in the cost of Homeowners Association (HOA) fees on condominiums.
Tampa, Orlando and Fort Lauderdale have seen homeowners association increases of more than 15 percent in the past year, According to new data from Redfin.
Homeowners association dues (paid by residents for general neighborhood upkeep or for condos in a shared building) are on the rise in the Sunshine State due to skyrocketing insurance costs.
The most frequent natural disasters, such as hurricanes and floods, have causedHomeowners associations will increase fees in anticipation of repair and mitigation needs.
Additionally, following the Surfside condo collapse in June 2021, new laws now require structural inspections of condos and additional money to be set aside for repairs, resulting in an increase in required payments.
Condo prices are falling rapidly across Florida amid rising homeowners association fees and insurance costs
In Tampa, the average monthly homeowners association fee rose 17.2 percent over the year through July 31, according to Redfin.
In Orlando, rates rose an average of 16.7 percent, and in Fort Lauderdale they rose 16.2 percent, it found.
That compares with an average increase of 6 percent in the 43 most populous metropolitan areas Redfin analyzed.
Homeowners association fees also increased in West Palm Beach by 12.8 percent, in Jacksonville by 7.6 percent and in Miami by 5.7 percent.
“Many buildings, even those without amenities, now have homeowners association dues exceeding $1,000 a month,” said Redfin’s Rafael Corrales.
“And with the addition of special assessments, many condo owners who are retired and/or on a fixed income are forced to sell and move because they can’t afford the payments,” he explained.
Inflation has also contributed to rising homeowners association dues, as repair, maintenance and labor costs have increased in recent years.
Along with rising rates, condo prices in Florida are now falling.
The combination of rising insurance costs, homeowners associations, repairs and safety fears are causing condo owners to leave in droves, driving down prices.
In Jacksonville, condo sales prices fell 6.6 percent over the past year, but metro-area homeowners association fees rose an average of 7.6 percent.
“Condos are taking a hit. Prices are going down,” Redfin sales manager Eric Auciello said.
‘Condo fees are skyrocketing due to rising insurance costs. These additional fees have negatively impacted the value of many units.’
Many sellers are cutting prices by as much as 40 percent and some units are losing nearly half a million dollars off their asking price, in what real estate agents have described as the worst housing crisis in decades.
Popular retirement locations such as Fort Lauderdale (pictured) have been hit hardest by increases in the cost of Homeowners Association (HOA) fees on condos.
The Surfside condominium collapse in June 2021 killed 98 people
Increase in weather-related natural disasters is driving up home insurance prices in Florida
This two-bedroom, two-bathroom Tampa condo has seen its price reduced from $515,000 to $449,900 since May, a 12 percent cut.
Earlier this year, a three-bedroom, two-bathroom condo in St. Petersburg was listed for sale for about $1.2 million.
But still with no buyer, the owner reduced the asking price first to $898,000 and last week to $715,000.
Hundreds of thousands of condo owners are now having to shell out large sums of money for maintenance repairs that had previously been neglected following the Surfside building collapse.
Under the new guidelines, condos older than 30 years or larger than three stories will require stricter inspections starting Dec. 31.
Many could face charges greater than their mortgage payments, sparking a wave of distressed sales in the Sunshine State.
Karen Shipman, who bought a second-story condo in Venice, Florida, with her husband for retirement in 2021, said she was no longer sure she could afford to keep her home.
“I feel like it’s a lost paradise now,” she told ABC Action News.
DailyMail.com previously revealed that an estimated 360,000 property owners in South Florida alone – the birthplace of the condo boom – may not be able to afford the repairs required by the new law.
