Photo-illustration by Newsweek/Getty/Florida Condo Prices Falling
By Giulia Carbonaro
Senior Reporter
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Condo prices continue to plummet in Florida, despite a recently introduced reform aimed at offering relief to owners and associations struggling with rising fees.
In May, according to the latest data released by Florida Realtors, the median sale price of a townhouse or condo in the state was $310,000, down 6.1 percent year-over-year. The drop is nearly double the one reported in the single-family market in the same month, where prices were down 2.7 percent from a year earlier.
At this point, condo prices across Florida have been continuously falling since July 2024, according to Florida Realtors—nearly a whole year.
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Why Are Condo Prices Falling?
New safety regulations introduced in Florida in the wake of the tragic Surfside collapse of June 2021, which killed 98 people, are widely considered responsible for the unfolding condo market crisis in the state.
The new guidelines require condo associations to conduct regular inspections on aging buildings and set aside the necessary funds to pay for crucial repairs and maintenance work, measures that naturally increase homeowners association (HOA) fees.
"These reforms, including structural inspections and reserve funding requirements, are critical steps to ensure long-term safety and financial stability. But they've also added complexity, especially for older buildings and associations still working to meet the new standards," 2025 Florida Realtors President Tim Weisheyer told Newsweek.
By December 31, 2024, condo associations were required to conduct their first inspection and develop a plan to save for routine maintenance. However, in the months leading up to this crucial deadline, condo owners fearing rising fees began trying to sell their properties en masse.
The result was an explosion in inventory in the Florida condo market at the same time that buying a condo was becoming a somewhat risky investment for buyers, which meant that many listings sat idle on the market for months without garnering much interest. Essentially, the market took a nosedive last year and has yet to recover, despite lawmakers intervening to help condo owners.
More frequent and severe natural disasters are also increasing home insurance premiums in the state, with significant consequences for waterfront condos in Southwest Florida. The average annual cost of condo insurance in Florida is $1,130, according to an analysis by NerdWallet.
All these factors combined are making condos somewhat less desirable for many buyers in the state.
In May, a total of 8,345 townhouse and condo sales were closed in the state, representing nearly 20 percent fewer than in the same month a year earlier. Between January and May, 37,759 townhouse and condo sales were closed in the state, down 13.1 percent from the same time frame a year earlier.
Where Are They Falling The Most?
A total of 19 out of 22 metropolitan statistical areas (MSAs) in Florida reported year-over-year drops in the sale price of a townhouse/condo in May.
Crestview-Fort Walton Beach-Destin experienced the largest decline, with the median sale price of a townhouse/condo at $475,000, falling 32.0 percent compared to the same time last year.
It was followed by Sebastian-Vero Beach (-29.6 percent at $220,000), Homosassa Springs (-22.4 percent at $177,500), Ocala (-19.6 percent at $181,000) and Deltona-Daytona Beach-Ormond Beach (-15.2 percent at $278,000).
The only three markets that reported price increases were Gainesville (+22.9 percent at $215,000), Orlando-Kissimmee-Bradenton (+2.2 percent at $322,000) and Tallahassee (+8.1 percent at $277,500).
"Generally, sharper price declines tend to occur in markets with more active new construction, rising inventory, or affordability pressures," Weisheyer said. "Sometimes it's also about the mix of homes selling, which can skew median prices. Each market has its own story, and it's important to look beyond the headline numbers."
Despite the widespread price drops, statewide median prices for condo and townhouse units in Florida are "still 54 percent higher than in 2020—the same difference observed for the single-family side of the market," Florida Realtors Chief Economist Dr. Brad O'Connor said in a recent report.
Will the Reform Stop Florida's Condo Market Downturn?
Last month, Governor Ron DeSantis signed a reform to the safety legislation, which is expected to deliver much-needed relief to condo owners across the state. However, it will hardly be able to fix the current situation on its own.
The reform maintains safety requirements while providing associations with more time to secure the necessary funds, allowing them to explore alternative funding options, including loans or lines of credit.
"Associations facing urgent structural repairs as a result of milestone inspections may, with unit owner approval, suspend reserve contributions for up to 24 months to allocate funds toward remediation," Carolina Sznajderman Sheir, Esq., a partner/shareholder at Florida-based law firm Eisinger Law, told Newsweek. "This provision offers short-term relief, though it may necessitate increased funding efforts in the future."
The bill, HB 913, also expressly authorizes associations, for the very first time, to meet their reserve obligations through the establishment of a line of credit, "provided the funds are immediately accessible to the board and sufficient to cover all SIRS-identified components," Sznajderman Sheir said.
"This option provides associations with an important planning tool—it allows them to 'fund' reserves without the immediate cash requirement of a lump-sum contribution, thereby reducing pressure on owners while maintaining compliance with statutory mandates."
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Sznajderman Sheir does not believe that HB 913 will alleviate the current surge in condominium listings.
"Associations that have historically been underfunded or poorly maintained will continue to face significant challenges—many for several years to come," she said. "For communities unable or unwilling to comply with the more stringent structural and financial standards, the reforms may actually accelerate the sale of units or result in terminations."
While the bill aims to restore confidence in the market over time, "any stabilizing effect is likely to be gradual rather than immediate," Sznajderman Sheir said. But even then, the bill falls short in two critical respects, for the Hollywood-based attorney: affordability and enforceability.
"First, the Legislature did not sufficiently address the funding barriers facing many associations. There is no provision for broader state financial assistance, nor does the bill ease the thresholds required to approve special assessments or secure institutional financing. These constraints remain significant hurdles for older or under-reserved communities," Sznajderman Sheir said.
"Second, while the bill significantly expands penalties for noncompliance—including criminal liability and mandatory board removal—I question the capacity of state regulators to uniformly and consistently enforce these provisions," she added. "Without increased funding or staffing for enforcement agencies, the practical effect of these enhanced penalties may be limited."
Overall, Sznajderman Sheir worries that the cumulative effect of these statutory demands "may inadvertently discourage owner participation in association governance," she said.
"The risk of personal liability, coupled with complex statutory mandates and the possibility of criminal exposure, may deter otherwise qualified individuals from volunteering for board service—particularly in smaller communities where professional management is cost-prohibitive."
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