And this is having a negative impact on the condo market and owners are now forced to choose between selling for less or staying in a home where their costs have gone up dramatically.
“Many buildings — even those without amenities — now have HOA dues north of $1,000 a month,” said Rafael Corrales, a Redfin Premier agent in Miami. “And with special assessments getting tacked on, a lot of condo owners who are retired and/or on a fixed income are being forced to sell and relocate because they can’t keep up with the payments.”
Florida condos are seeing a staggering surge in HOA
Redfin analyzed HOA fees during the three months ending July 31 for condominiums in 43 metro areas across the United States. While the data showed a 6% median gain among all the cities analyzed, dues went up far more in the Sunshine State.
In fact, Tampa saw the sharpest cost increases in the nation, with dues jumping a whopping 17.2% year over year. Orlando was a close second, with median HOA fees rising 16.7%, and Fort Lauderdale had the third-highest increase, at 16.2%.
Other Florida metros, including West Palm Beach and Jacksonville, also saw above-average HOA fee increases, at 12.8% and 7.6% respectively. Miami, at first glance, appears to have been spared with just a 5.7% increase, but that's largely because dues were already so high there. With an average median cost of $835 monthly, Miami condo fees are higher than any other area in Redfin’s review.
While these price increases are astronomical, there are ample reasons why Florida condo owners are being hit so hard.
One of the biggest justifications for rising costs is the passage of Senate Bill 4-D in Florida, which was passed in the wake of the Surfside Condo collapse. The 12-story condo fell in June 2021, killing more than 100. Aimed at preventing further tragedies, Senate Bill 4-D set new inspection requirements and new reserve requirements to ensure there are funds for repairs. HOAs are collecting additional dues to comply with these new requirements.
Insurance costs have also skyrocketed throughout Florida for condos and single-family homes, with a Redfin survey revealing three-quarters of all Florida property owners indicated premiums were up.
