Florida Condo Trends Update - September 1, 2025

Market Trends & Challenges

• Softening market dynamics: Florida’s condominium sector continues to weaken. Sales and prices remain significantly below their recent peaks, with inventory swelling to over 10 months’ supply, clearly favoring buyers. In South Florida, prices in lower-tier condos (under $500K) have dropped 6–7% year-over-year, and average monthly unit sales in major areas (Miami-Dade, Broward, Palm Beach) are roughly half of their 2021 levels.

• Affordability under pressure: Rising HOA fees, costly insurance premiums, and mandatory special assessments—especially in older or low-priced units (e.g., $250K–$300K)—have put condo ownership out of reach for many buyers, particularly retirees and fixed-income residents.

• Inland vs. coastal disparity: Inland Florida condos are faring somewhat better. Lower insurance costs and fewer structural inspection burdens have helped maintain affordability and value, even as inventory grows—up 37.5% year-over-year inland compared to 27% on the Florida East Coast and 19% on the Gulf coast.

• Broader housing slowdown: The Florida housing market slowdown, driven by overdevelopment, high insurance premiums, rising HOA fees, and property taxes, is prompting migration away from Florida and signaling cracks in the post-pandemic boom.

Regulatory Updates & Relief Measures

• HB 913 (effective July 1, 2025): Introduced sweeping reforms to increase transparency, operational flexibility, and safety standards in condo and HOA governance.

  • Recordkeeping & transparency: Associations must promptly post bank statements, ledgers, video-recorded meeting minutes, and other key documents online.

  • Meeting & voting adjustments: Virtual meetings are permitted (though virtual attendees don’t count toward quorum), with 25% of member petitions enabling electronic voting. Meetings must be recorded and held within 15 miles or within the same county, with DBPR to adopt rules.

  • Financial controls: If a proposed budget exceeds 115% of the prior year’s assessments, a stripped-down substitute budget must be offered, now including “betterment” costs but exempting only SIRS-related expenses.

  • Insurance requirements: Mandatory property insurance based on full insurable value, updated at least every three years; umbrella policies must account for losses from 250-year windstorm events.

  • Reserves & inspections: Raised reserve item threshold to $25,000 (adjusted for inflation), multicondo associations may use pooled reserves, and associations can pause funding in certain situations (e.g., building uninhabitable or following a milestone inspection, pending a new reserve study—with SIRS enforcement delayed to Dec 31, 2025).

  • Milestone inspections: Applies to buildings with three or more stories, with new deadlines for enforcement, local reporting to DBPR by Oct 1, 2025, and required repair commencement within 365 days post-phase-two inspection. The Office of Program Policy Analysis and Government Accountability (OPPAGA) reports outcomes to the Florida Legislature.

• SB 328 (signed June 20, 2025): Offers temporary financial relief for associations impacted by prior mandates.

  • Reserve funding delayed: Mandatory reserve funding enforcement is now postponed until January 1, 2026, giving associations room to plan.

  • Assessment relief: The delay mitigates the need for immediate and steep special assessments.

  • Time for owner communication: Boards can use the extended period to better inform members and plan budgets strategically.

• Industry perspectives on reforms: The 2025 reforms are designed to retain safety mandates while easing financial stress—allowing reserve pauses, loans/credit lines, contract terminations for noncompliant managers, and extended study deadlines.

Sources and Additional Reading

• New York Post

• The U.S. Sun

• Business Insider