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Daily Mail
08-07-2025
- Business
- Daily Mail
What to know before buying a condo in Florida during condo crisis
Florida is currently undergoing the worst condo crisis in history. But the silver lining is that it has become a buyer's market — if you arm yourself with knowledge of what to look for first. Buyers looking for an escape or an investment property during the pandemic often went in blindly, not even viewing a building in person or investigating its history . This meant that many got stuck in undesirable neighborhoods or developments they didn't want to live in and ended up selling at a loss or not at all. And in the four years since the Surfside residential building collapse that killed 98 people, the condo industry has undergone a painful transformation. It's become a jumble of soaring insurance rates, complex inspection reports, surprise costs, and a tidal wave of inventory flooding the market. Basically, Florida homeowners have grown hopeless of ever unloading unwanted properties. Still, experts advise to buy if you can as prices plummet — but you must do your research first. Here's what experts say you need to know before you even consider buying a condo in the current housing market in Florida. Find out what your insurance access and cost will be First, check if insurance is even available. While the condos themselves may be affordable, the Florida homeowners insurance market has been in crisis, with companies leaving the state, going out of business, or choosing not to renew policies in high-risk areas. Insurance companies that have left Florida or reduced coverage in the state include Farmers, Progressive, and AAA. If insurance is available, make sure you find out the monthly and yearly cost and what exactly it covers. Also research natural disasters, hurricanes and flooding in the areas you're looking. Make sure you also double check the building's past insurance rates as they can be sky-high, especially in older or coastal buildings. 'With increased pressure on condominium board members and unit owners it is important to speak with the association and understand how the cost of a building's structural repairs will be passed down,' said South Florida based insurance attorney Gina Clausen Lozier. 'It is also prudent to speak with an insurance agent regarding your special assessment coverage.' Special assessments are extra fees your HOA board may charge you under certain conditions. The board usually levies these costs only in emergencies, such as unexpected disasters or damages due to storms. Investigate an HOA's financial health Review if the HOA has enough reserves to cover repairs. Avoid buildings with underfunded HOAs or looming special assessments. Go for a newer build if you can, but if considering an older building ask to see recent budgets. If the HOA board refuses to co-operate, walk away. 'In today's market, buyers need to prioritize newer construction or fully updated buildings with strong reserves,' Ruthie and Ethan Assouline, a team at Douglas Elliman in Florida, told the Daily Mail. Following the Surfside collapse in 2021, some HOA boards woke up to the fact that they needed serious change and took the proper steps to get up to code, said lawyer David Podein. But many others did not, explained the equity partner and chair of the real estate and transactional law group at Miami-based firm Haber Law. 'Some buildings are doing the necessary work. They're going out and doing special assessments and they're financing those special assessments with loans that allow the unit owners to repay the fund over a longer period of time,' he said. 'Others are not.' Building condition and reserves Request inspection reports and check for deferred maintenance, violations, or costly repair needs. Older can be better — but only if the building has been well maintained and has healthy reserves. 'Always ask about the building's 40-year recertification and inspection history,' the Assouline team told the Daily Mail. 'Look for location, privacy, views, and something that matches your preferred lifestyle. 'Whether it's a full move or just a pied-à-terre, you want something turnkey that holds long-term value.' Maintaining the structural integrity of buildings as they age is the reason behind Florida's newer laws requiring structural inspections and structural reserve studies, said Lozier, the insurance attorney. 'As a unit owner, this can be a worrisome process as the law requires the inspection of the building's critical components. 'Not only can the inspections themselves come with a hefty price tag, but the necessary funds required for an association's reserves can be passed to the owners through special assessments,' she said. 'In some cases, a unit owner's insurance policy will cover special assessments up to a certain amount if the special assessment is the result of a covered loss, such as a hurricane, fire or other catastrophic event.' But she warned that a claim for the reimbursement of a special assessment associated with structural integrity reserve studies would likely be challenged by an insurer. Hurricane and flood risk First, know that every property in Florida is in a flood zone. It's just a matter of whether it is in a low, moderate or high-risk flood zone, which you can find out with some quick research. Know the particular building's flood zone (this can be found on Zillow on the listing page) and past and current hurricane exposure. Flood maps are also available through FEMA's Flood Map Service Center and if you just plug in an address, it can help determine a property's specific flood risk. High natural disaster probability will drive up costs and can impact the building's safety and value. Community makeup Location is extremely important, and this is especially true if you plan to buy a condo as an investment and want to rent it out. You are likely to get better rental income if your unit is in an area with essentials like good hospitals, schools, and public transport systems. Buying a condo in an unsafe or noisy neighborhood can ruin the investment. Be nosy. Talk to residents in the development and neighborhood — they'll tell you what it's really like to live there day by day. Ask about noise levels, clean up, maintenance and what the neighbors are like. Get yourself a great broker 'Working with a broker who understands the nuances of the markets and can help you identify the most suitable location and available properties in that area is essential,' the Assouline team at Douglas Elliman advised. Ask around for the brokers who know the area best, including which HOA boards are shady and which are transparent. Multiple Miami condo associations have filed for bankruptcy, buried under tens of millions in debt due to bad HOA boards. When an HOA collapses, the impact on residents is immediate and painful. Pools, gyms, and other shared amenities are shut down, landscaping is neglected, and basic maintenance stalls, leaving condos unsellable. Find out if you can rent it You can rent out a condo you own and make extra income, but many HOA boards prevent owners from renting outside immediate family. Make sure you know the rules before you buy. A condominium lets you build wealth through home equity. You can rent out a unit you own and enjoy tax write-offs. Condos are an excellent investment because their value appreciates over time. Ask yourself if the purchase falls under the five-year-rule If the HOA fee is doable, you can land a reasonable insurance rate and you like the location, then see if you can check off the five-year-rule. Ask yourself if staying in the home for at least five years would be financially prudent to avoid a financial loss? Can you rent it out? Is the location good? Is it safe? In the end, condo buyers typically spend less on maintenance and upkeep compared to those who own single-family homes, so often it's worth it.
Forbes
08-07-2025
- Business
- Forbes
Florida Home Prices: At The Tipping Point?
Across the country, home prices surged in 2022 but nowhere more so than in Florida, where sale prices jumped 30%. The Sunshine State's spike was partly the result of delayed demand during the pandemic and partly due to Florida's desirability as a retirement destination — a place where people will buy a home even before they actually live there. As prices rose in 2022, future retirees swelled demand, and prices skyrocketed. The longer-term result of the 2022 surge and additional increases that followed is that prices in Florida today are from 20 to 40% higher than average local incomes can support. Housing cost-to-income imbalances of this magnitude are almost always followed by multi-year corrections, but in Florida — as in most other U.S. markets — this hasn't yet happened. However, we're beginning to see signs that things may be very different in the next year, and the reasons aren't difficult to understand. First, it's fairly clear that mortgage rates will remain high, which cuts the number of new buyers. Second, the very nature of being a retirement-heavy market means there's higher-than-average turnover of homes. Fewer buyers and a constant flow of properties for sale means downward pressure on prices. Florida Metro Markets Show Sharp Divergence in Home Prices and Job Growth from 2022 to 2025 Vertical IQ Our table (right) shows home price and job data for a dozen Florida markets. Jobs are traditionally our best marker for the health of a local economy. The combination of economic weakness and faltering home prices in southwest Florida — the region where prices increased the most in 2022 — strongly suggests that a long period of price adjustment is just getting started there and will eventually spread across the state. Elsewhere in Florida, places like Jacksonville, Orlando, Miami, and Tallahassee are less dependent on the retirement market, but they will not be immune to this residential real estate correction. My advice to investors is to get out now and quickly, even if you have to put an ax to your asking price. Don't wait six months to see how things shake out as the market is likely to have further deteriorated by then.
Daily Mail
26-06-2025
- Business
- Daily Mail
Florida housing market on fire again after shock election result is driving millionaires out of city
Florida 's housing market is set to receive a boost from rich New Yorkers who are fleeing the city following socialist Zohran Mamdani's shock win in the Democratic primary. Realtors say they have already been inundated by calls from wealthy clients seeking to relocate to the Sunshine State after Mamdani's surprise victory. Mamdani handily defeated former New York Governor Andrew Cuomo in Tuesday's election on a platform of taxing the super rich. Prior to the result, billionaires Bill Ackman and John Catsimatidis warned that the 33-year-old upstart's victory could lead to an exodus of the wealthy, with Catsimatidis vowing to shutter his chain of grocery stores. Now celebrity real estate broker Ryan Serhant has revealed to the New York Post that his number one job following Mamdani's win will be, 'moving people from New York to Florida. Again.' 'Based on the results, clients are going to hold off on making any kind of investment in New York City,' Serhant said. Minutes after Cuomo's concession, Serhant and other real estate agents told the Post they were flooded with calls from clients who wanted to walk away from deals to buy in the Big Apple. Florida Governor Ron DeSantis also cheekily acknowledged the potential upside for his state after a poll emerged which showed that Mamdani surging ahead. 'Just when you thought Palm Beach real estate couldn't go any higher,' wrote on X. Florida has long been a haven for the ultra rich thanks to the absence of any income tax. But now New York-based venture capitalists, founders and bankers are even reportedly looking at distant getaways like Uruguay and Milan if Mamdani wins the general mayoral election in November. Ackman, a hedge fund manager who supported President Donald Trump, has become one of the loudest voices decrying Mamdani's upset victory. Ackman, like other billionaires, say Mamdani's policies will lead to capital flight of epic proportions. 'His policies would be disastrous for NYC. Socialism has no place in the economic capital of our country,' Ackman wrote in a long post on X early Thursday morning. 'The ability for NYC to offer services for the poor and needy, let alone the average New Yorker, is entirely dependent on NYC being a business-friendly environment and a place where wealthy residents are willing to spend 183 days and assume the associated tax burden,' he added. Billionaire John Catsimatidis threatened to relocate or sell his New York City-based supermarket chain Gristedes in the event Mamdani won in response to his plans to create city-run grocery stores. Now that Mamdani's victory is nearly assured - the results won't be officially confirmed until July 1 due to the city's ranked choice voting system - Florida real estate agents are seeing a surge in interest. 'The amount of lifelong New Yorkers texting me [about a move to Florida] is close to shocking,' Nathan Zeder, a broker who works at the Jills Zeder Group, told the Post. The real estate group, based in Fort Lauderdale, has sold about $1.8 billion worth in property in Florida so far this year. 'People are frightened and over the next three to four months we're going to see a lot of people consider South Florida again - it's going to be a COVID level of interest,' Zeder said. 'These are people who can afford to move with relative ease.' Serhant doesn't believe it's a foregone conclusion that Mamdani will ascend to the mayor's office, as there is a monied coalition forming that is expected to support incumbent Mayor Eric Adams. Following his corruption charges that were later dropped by the Trump administration, Adams found it to be untenable to run as a Democrat. He dropped out of the primary race in April and chose to run for another term as an independent. 'We'll see what happens now - you're going to see the real estate and investment community back Adams,' Serhant said. 'People are frightened and over the next three to four months we're going to see a lot of people consider South Florida again - it's going to be a COVID level of interest,' Zeder said There is also the question of whether Cuomo will decide to mount an independent campaign himself, something he has not ruled out. If Mamdani were to be defeated in the general election, it could resemble what happened in 2021 to India Walton, a socialist candidate who defeated centrist Byron Brown in the Democratic primary for Buffalo mayor. Months later, Walton lost the general to Brown, who initiated a successful write-in campaign. While New York City figures out its future, Serhant pointed out that, 'there are plenty of other places to live' and that his agents in the Sun Belt have been busy since Mamdani's win.
Daily Mail
10-06-2025
- Business
- Daily Mail
EXCLUSIVE Alarm sounds on condo 'crisis' as perfect storm fuels fears of catastrophic price crash
The once-booming condo market in Florida is in crisis. Miami-Dade's market in particular is faltering, according to a recent report by the county property appraiser's Office.
Daily Mail
14-05-2025
- Business
- Daily Mail
Southern state residents 'desperate to escape' but homes won't sell as crash looms
South Florida 's pandemic property boom has officially reversed. After years of surging demand, the region now has more homes on the market than at any time in nearly a decade, according to a new report from Cotality. Prices have soared, HOA fees are sky-high, and demand is cratering. Listings across Miami-Dade, Broward, and Palm Beach counties have quadrupled since 2022. There are now more cars on sale than ever in the area. 'The last 25 years have seen home prices, homeowners' insurance, and property taxes surge in Florida,' explains Cotality chief economist Selma Hepp. 'When you add in the unflagging migration that is straining the state's public services and inflated costs across the board, the pressure on the quality of life has become so great that it is beginning to tip the balance. 'Many households are finding it increasingly difficult to stay in the state.' Florida's fragile housing market can also be blamed on aging infrastructure and environmental threats. More than 52,000 homes in those areas were listed for sale in April. That's a huge jump from just 12,825 listings during the peak of Florida's COVID and post-COVID migration boom, when thousands of buyers flocked to the state in search of sunshine and space. Residents blame skyrocketing home costs and a mortgage crisis that shows no signs of easing up any time soon. The risk of natural disasters and soaring insurance costs are also lessening Florida's appeal. According to experts, Florida is also getting hit with a combination of rising inventory and falling demand as people grow desperate to flee. Stricter building regulations following the 2021 Surfside collapse are also driving sellers to the market, because they're ending up footing the bill for long-neglected repairs. After the Champlain Towers South in Surfside collapsed, it forced lawmakers to impose strict new inspection laws and higher HOA reserves on condo buildings. Sky high maintenance fees and insurance premiums are also causing homeowners to sell, according to a new report by Cotality. New builds are also failing to draw residents. Labor shortages, rising material costs, and extra costs from tariffs are adding additional hurdles for developers who are now pausing projects. Real estate investors are also bailing on Florida as the state's property crisis worsens. Out of the top five areas where investor purchases have dropped the most, three are located in Florida, according to a report by Redfin. With its warm weather, beautiful beaches, affordable homes and no state income tax, Florida for years drew investors looking to flip homes or generate rental income. Breaking down which areas are being hit hardest, according to Cotality's Home Price Index, Tampa home sales listings increased 52 percent in the last five years. Jacksonville saw a 50 percent jump in listings. Orlando, where Disney drives jobs and homeowners, is also struggling. 'It's kind of like this perfect storm now,' said Reventure CEO Nick Gerli. 'People are being priced out, newcomers are drying up, and more homeowners are choosing to sell.' Natural disasters and rising insurance costs are also causing homeowners to want to flee Gerli adds that South Florida residents earning between $70,000 and $80,000 a year can no longer afford to buy homes, even if property taxes stay low. 'They can't even qualify for a mortgage in many cases,' he said. 'This type of family could afford to buy before the pandemic — but not anymore.' The report concludes that the housing boom in Florida has now fully 'boomeranged,' and has now gone in the complete opposite direction, threatening to crash. 'Florida has become a victim of its own success,' it reads. Meanwhile, Florida contained three of the top five metro areas that were announced last month to be at huge risk of a housing market crash in 2025. Winter Haven, Tampa, and West Palm Beach among the top five U.S. markets most likely to see home price declines this year.
