Florida’s Condo Market in Crisis: A Perfect Storm of Disaster, Reform, and Economic Pressures
The once-booming Florida condominium market faces unprecedented challenges as three major events converge to create a perfect storm of uncertainty and financial strain. The Surfside disaster, well-intentioned but problematic condo reforms, skyrocketing mortgage rates, and soaring insurance costs have left the market reeling. The three major events reshaping the landscape of Florida’s condo market now are:
- The Surfside Disaster
- The well-intentioned condo reform
- The high mortgage rates, coupled with high insurance costs
Florida’s condo market used to offer affordable and stable housing for just about anyone who wanted to live in the state. From affordable to ultra-lux, Florida had it all; now, “affordable” is a word that no longer seems to be used in the same sentence as Florida condo.
The Surfside Disaster: A Wake-Up Call
The first event that sent shockwaves through the Florida condo market was the tragic Surfside Disaster. The collapse of the Champlain Towers South in 2021 served as a wake-up call for the condo community statewide. The tragedy led to the implementation of new legislation requiring milestone inspections for condo and co-op buildings, structural integrity reserve studies (SIRS) every decade, and the full funding of financial reserves.