“Condo costs are shocking,” said Juan Castro, a Redfin Premier agent in Orlando. “Condos that used to have a $400 monthly maintenance fee may now have a $700 fee. It’s causing buyers to rethink their plans.”
Average homeowners’ insurance costs in Florida shot up roughly 40% in 2023 alone, and new regulations in the wake of the 2021 Surfside condo collapse are hiking HOA fees across Florida.
The new regulations compel HOAs to conduct regular safety assessments of condo buildings, often requiring hefty fees for maintenance and repairs. That’s why getting a condo mortgage can be more challenging than getting approved for a single-family home loan.
Limited mortgage options for condos further complicate the issue. Lenders often require borrowers to prove financial reserves and may be less likely to approve loans for condos in buildings with questionable financial health.
All these factors, combined with Florida’s notoriously high insurance rates due to natural disasters, are creating a challenging environment for condo buyers.
