Study: Condos Have Greatest Level of Construction Woes

Mar 10, 2017

When it comes inadequate (or worse) construction practices, the majority of deficiencies occur in new condominium developments rather than townhomes and single-family homes, according to a new study released by the Community Associations Institute (CAI).

The CAI study, “Protecting Homebuyers and Homeowners from Construction Deficiencies in Condominiums and Preserving Property Values Survey," concluded that 81 percent of respondents identified poor workmanship as the most common type of construction deficiency, resulting in plumbing leaks, electrical or mechanical problems, and cracks in foundation walls. Thirty-five percent of respondents complained that construction deficiencies created a negative impact a homeowner’s property value and hampered resale efforts.

In a press statement, the CAI said it was is promoting its study to highlight how community associations have been “under attack in state legislatures and municipalities by legislation and ordinances aimed at stripping associations’ ability to seek relief from damages due to legitimate deficiencies found in the construction of homes, units, or common areas.” CAI also insisted that supporters of these legislative efforts were arguing that “frivolous lawsuits filed by associations and the costs associated with them make building affordable condominiums too risky.”

But that is not say that community associations did not press their cases in court–44 percent of these lawsuits were resolved in out-of-court settlements.

About the author

Phil Hall

Link copied

Published

Mar 10, 2017

C-Suite Strategies

Better Says It Fired Vishal Garg After He Moves To Oust Board

Founder claims majority shareholder support; company blames him for its delayed 10-Q and raises possible securities-law concerns

Better Home & Finance Holding Company said Friday that it terminated founder Vishal Garg as CEO and accused him of delaying the company’s quarterly filing, sharply escalating a dispute over control of the mortgage lender one day after Garg demanded that five directors re...

Analysis and Data

Figure Says Partners More Than Doubled HELOC Volume On Its Platform

Consumer loan marketplace volume reached $4.3 billion as Figure Connect drove more production off the company’s balance sheet and helped lift adjusted margins to a record 55%

Figure Technology Solutions said mortgage partners using its platform generated substantially more home equity lending volume than their previous production would have predicted, adding an originator-level measure to a quarter marked by rapid marketplace growth and record pr...

Sep

San Francisco, CA

More from

Industry News

July CPI Eases Mortgage-Rate Risk, But Doesn’t Promise Relief

Consumer inflation rose just 0.1% in July, reducing pressure for a September Fed rate hike as mortgage rates remain near their highest levels of the year

Industry News

Aug 13, 2026

The Fed Held. The Mortgage Market Got A Warning.

Three policymakers favored an immediate hike, while Warsh welcomed higher bond yields and offered no clear path toward mortgage-rate relief

Industry News

Jul 30, 2026

New Study Finds UWM's 'All-In' Triggered Industrywide Pricing Spillovers

Research shows wholesale competitors responded to the 2021 Rocket ban by lowering mortgage rates,

Industry News

Jul 15, 2026

First Major Housing Reform In Decades Becomes Law Without Trump's Signature

Bipartisan ROAD to Housing Act advances supply, construction, and mortgage reforms despite White House protest