Florida’s condo market is facing a crisis that could have far-reaching consequences across the U.S., with 80% of condo owners in the state at risk of losing money on their properties, according to top real estate investor Grant Cardone. The combination of skyrocketing insurance premiums, inflation, and rising interest rates has created a “perfect storm,” Cardone told the Daily Mail, predicting that this situation could fuel a broader national property crisis.
The crisis is being driven by new state laws passed after the tragic 2021 collapse of the Champlain Towers South in Miami-Dade County, which killed 98 people. These laws require extensive repairs on aging condominiums, and many property owners simply cannot afford the upgrades. As a result, some condo owners have had to slash prices by as much as 40% just to sell their properties.
Cardone, who owns 15,000 properties, warned that the financial burden placed on condo owners and associations could spread beyond Florida, putting homeowners’ associations (HOAs) across the country at risk of bankruptcy if the federal government doesn’t intervene. “There is no time left to solve this problem,” he cautioned, calling it a bigger issue than global warming.