Florida Condo Owners in Crisis as Prices Plummet While Insurance Rates Skyrocket

The Florida condominium market is experiencing significant upheaval. Owners are facing a two-pronged attack on their investment’s viability: while prices continue to plummet, insurance prices have risen significantly, deterring potential buyers and unsettling current owners.

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Rising Listings and Falling Prices

Recent reports indicate a surge in new properties becoming available for purchase, while prices have fallen across all major Florida cities, such as Miami and Jacksonville.

Fall in Prices in Stark Contrast to National Trend

The price fall is a reversal of the national trend, where condominium prices have risen in recent years.

Reasons Behind the Trend

Key reasons cited for this trend include the change in climatic conditions, especially the possibility of flooding in these regions. Other factors include rising property taxes and high mortgage rates.

Escalating Insurance Costs: A Deepening Crisis

On the other hand, a deepening insurance crisis is driven by worsening weather conditions, including floods and hurricanes. Major insurers have either scaled back or completely withdrawn from the state, further exacerbating the problem.

Surfside Tragedy’s Legacy: Renovations and Rising Fees

Credit: DepositPhotos – Surfside, FL, USA – June 24, 2021: Scene at the collapse of the Champlain Towers Surfside Miami Beach — Photo by felixtm

The 2021 condo collapse in Surfside catalyzed initiatives to ensure building strength across Florida’s condo market.

Additional Costs

Condo owners are burdened with several additional costs due to these problems, including assessing the risk to the actual renovation costs, which has further increased the burden on the cost of ownership.

Buyer Disinterest and Investor Concerns

Prospective condo buyers face deterrents such as exorbitant insurance bills, which discourage investment in Florida properties. Several of them are forgoing opportunities.