Florida's condo market has become a nightmare for many residents trying to sell. The Sunshine State's retirees who flocked there for affordable condos now find themselves stuck with old properties worth virtually nothing that they are desperate to escape . Pending mandatory repairs and rising HOA fees on aging towers have driven owners to list in a flooded market.

In Boynton Beach for example, a two-bedroom, two-bathroom condo at Hunters Run Country Club with access to a resort-style pool and high-end amenities is selling for just $10,000. The owner paid $60,000 for it in 2001. It's now worth $3 per square-foot. On Marco Island, a one-bedroom, two-bathroom condo complete with water access at Sunrise Bay Resort is listed for $9,000. In contrast, a newer build nearby on Marco Island with an oceanfront entrance is selling for $629,000. But the rock bottom prices still won't move inventory. Buyers aren't biting. Instead, most are opting for newer builds, which come with modern storm protections, amenities and HOA fees that won't skyrocket any time soon. The dramatic shift comes after a new Florida law — passed in response to the deadly 2021 Surfside collapse that killed 98 people — imposed strict inspection and funding requirements for aging buildings.

 

Condo associations must now conduct structural safety assessments and collect hefty reserve funds for future repairs. 'I think we are going to see a growing divide,' attorney Alessandra Stivelman of Eisinger Law tells DailyMail.com 'New condos built to modern codes and with fully compliant reserves will thrive — while older buildings may struggle to survive and face termination, bulk sales, or redevelopment.'

Now, owners are trying to dump their condos. The problem is, no one wants them. The State of Florida Property Management Association (SFPMA) reports that at Miami's Cricket Club, a 50-year-old tower, each of the 217 owners were hit with an extra $134,000 in assessments. Summit Towers in Hollywood, Florida, faced a $56 million assessment, or $99,000 for each of the 567 condos, which completely tanked the value of the building.

Condos built over 30 years ago have seen a staggering 22 percent drop in value over the past four years, reports SFPMA. Meanwhile, new units have climbed in value 12 percent in just two years. Mortgage insurer Fannie Mae has now blacklisted more than 1,400 Florida condos due to deferred repairs or insurance lapses, which halts any attempt at a sale. Hard-hit condo dwellers on fixed incomes and retirees see no way out. 'That's the million-dollar question – what will happen next and when,' Stivelman says.

'While this cycle of new and replacement buildings may help improve the safety and durability of Florida's condo inventory, it also raises concerns about displacement, affordability, and access for long-time residents. 'Many may not be able to absorb escalating costs or compete in a market shifting toward luxury redevelopment.' Despite the crisis, Governor DeSantis has acknowledged the 'serious problem' in the condo market, but offers no immediate bailout.

DeSantis did sign a new law that kicks in July 1, that will rein in homeowners associations (HOAs) long accused of slapping residents with surprise fees and fines for petty infractions. DeSantis signed HB 1203 into law earlier this month, ushering in sweeping reforms aimed at making HOA boards more transparent and less intrusive. Under the new rules, any HOA with more than 100 homes or condos must post key documents — including budgets, covenants, and bylaws — on a publicly accessible website by January 1. Board members and property managers will also have to complete 4 to 8 hours of state-approved education each year.

And homeowners must now get at least 14 days' notice, along with an agenda, before any board meeting. The changes are being welcomed by property owners who say they've been blindsided with arbitrary violations and ballooning fees with little warning or recourse. And this could be just the beginning of nitpicky HOAs. Lawmakers have signaled more limits may be on the way, in Florida and other states. But it's not enough for many retirees. As the crisis continues in Florida, the state may lose them as they didn't anticipate repair bills, high insurance rates and sagging condo values that are squeezing seniors out.

More frequent natural disasters such as hurricanes and flooding have also led to more repairs and mitigation needs. As a result, the number of condos on the market has soared, and a 'mass exodus' is expected. There were 20,293 condo listings in the Palm Beach, Broward and Miami-Dade counties in the second quarter of 2024, ISG World reports. The figure is an 143 percent leap from the 8,353 in the same period 2023. Almost 90 percent of those for sale are in buildings more than 30 years old.