Condominium prices in Florida are falling, unlike most places in the US where home prices are on the rise. Below, we will discuss the reasons why condo prices in Florida have been dropping, and also list the places in Florida where condo prices are dropping the most. To provide this information, we analyzed the most recent metro sales data and compared it year over year to see where condominium prices are dropping the most in Florida. The condo sales data we looked at is January 2023 versus January 2024.
Reasons Why Condo Prices are Falling in Florida
Florida’s condo prices are decreasing due to the increasing cost of maintaining a condo. The high costs of HOA (Homeowners Association) fees and high homeowner’s insurance are making it difficult for buyers to afford condos. As a result, condos are taking longer to sell and receiving less interest from buyers.
High HOA
The reason why HOA fees are increasing in Florida is due to new condo regulations that were put in place after the 2021 Surfside condo collapse. These regulations require HOAs to regularly assess the safety of condo buildings and collect more money for maintenance and repairs, which is causing the fees to go up.
HOA fees typically include a condo owner’s share of insurance costs for the exterior of a building, while homeowners have a separate policy covering the interior of their condo.
High Homeowner’s Insurance
To make things worse, homeowners insurance costs are also going up in Florida due to the rising intensity of hurricanes and other natural disasters. Some insurance companies have even left the state altogether.
Homeowners’ insurance costs three times more in Florida than the national average, making it the most expensive state in the U.S. to insure a home. In 2023 alone, the average cost of homeowners insurance across Florida increased by about 40%.
Hard to Get Condo Mortgage
Another reason contributing to the slowdown in condo sales is that it’s harder to get a condo mortgage than a single-family home mortgage, even though condos are often considered a more affordable option.
Lenders require borrowers to have enough money to cover HOA dues and also consider the financial health of the condo building before approving a loan.
The rising cost of homeowner’s insurance, HOA fees, and the difficulty of getting a condo mortgage are making it harder for buyers to afford condos in Florida, resulting in lower prices.
Places in Florida Where Condo Prices are Dropping Fast
Below is a list of places in Florida where condominium prices have dropped.
1. Sebring
- Change: -23.70%
Sebring has experienced a significant decline in condominium home prices, dropping by 23.70% recently.
2. Homosassa Springs
- Change: -22.55%
Homosassa Springs is witnessing a substantial decrease in condominium home prices, down by 22.55%.
3. Lakeland
- Change: -16.67%
Lakeland is facing a decline in condominium home prices, with a decrease of 16.67%.
4. Sebastian
- Change: -15.97%
Sebastian is observing a considerable drop in condominium home prices, down by 15.97%.
5. Palm Bay
- Change: -7.99%
Palm Bay has seen a noticeable decrease in condominium home prices, with a decline of 7.99%.
6. Jacksonville
- Change: -7.38%
Jacksonville is experiencing a decline in condominium home prices, with a decrease of 7.38%.
7. Tallahassee
- Change: -6.92%
Tallahassee is undergoing a moderate decrease in condominium home prices, down by 6.92%.
8. Orlando
- Change: -4.76%
Orlando is facing a slight decline in condominium home prices, with a decrease of 4.76%.
9. Miami
- Change: -2.53%
Miami is seeing a modest drop in condominium home prices, down by 2.53%.
10. Crestview
- Change: -1.02%
Crestview has experienced a marginal decline in condominium home prices, with a decrease of 1.02%.
11. Tampa
- Change: -0.84%
Tampa has seen a minimal decrease in condominium home prices, down by 0.84%.
12. Naples
- Change: -0.29%
Naples is witnessing a very slight decline in condominium home prices, with a decrease of 0.29%.
Get Your Free Home Maintenance Tracker Printable
Sign up once and you will get access to ALL exclusive content on this website. After unlocking the printable, just save the printable image and then print it. Use it as a checklist to help you keep track of monthly home maintenance, so you don’t forget anything! I hope you like it!
You won’t believe how affordable these Florida beach towns are. Check out the 20 Most Affordable Beach Towns in Florida
10 Cheapest and Safest Places to Retire in Florida
10 Common Home Selling Mistakes to Avoid (free home selling checklists)
50+ Things to Look for When Buying a House: Free House Hunting Checklist
9 Warning Signs that It’s Time to Downsize