Prices and sales for condos in several major Florida metros fell in January as the rising cost of owning outpaces the falling cost of buying these units.
The median sale price for condos have risen 8.4% nationally, but fallen in Jacksonville (-6.5%), Orlando (-4.8%), Miami (-2.5%), and Tampa (-1%), according to a new report by Redfin comparing the condo markets in six of Florida’s most-populous metros. Median condo sale prices rose in Cape Coral (+6.5%) and North Port (+7.1%), but prices in those cities were at a low point last year in the aftermath of 2022’s Hurricane Ian.
Meanwhile, in four of these six metros, condo sales have fallen more rapidly than prices: Jacksonville (-27.4%), Miami (-8.7%), Tampa (-4.1%), and Cape Coral (-8.4%). Condo sales rose year over year in Orlando (+6.6%) while remaining flat in North Port, as well as nationally.
New condo regulations implemented following the 2021 Surfside tower collapse have caused homeowners association (HOA) fees to increase dramatically in the Sunshine State. “Condos that used to have a $400 monthly maintenance fee may now have a $700 fee. It’s causing buyers to rethink their plans,” said Juan Castro, a Redfin Premier agent in Orlando.
Skyrocketing homeowners insurance premiums – up an average of 40% across the state in 2023 alone – have also made the cost of owning condos in Florida much less attractive, pushing prices down. In some cases, the report explains, it’s becoming more difficult for borrowers to get a mortgage for a condo than for a single-family home – despite condos historically being the more affordable option.
“Condos are sitting on the market much longer than they used to, with less interest from buyers,” says Jacksonville Redfin Premier agent Heather Kruayai. “Sky-high HOA costs are pushing buyers out of their monthly budget.”
Despite falling prices, as more buyers hesitated, new condo listings surged in all six of Florida’s most-populous metros in January, increasing 28.2% across the state against a national increase of 11.1%, year over year. The largest increases in new condo listings were in North Port (+33.7%), Cape Coral (+32.6%), and Jacksonville (+32.4%).
