South Florida Faces Condo Crisis Due to Rising Fees

A significant condo crisis is unfolding in South Florida, driven by a new state law mandating condominium boards to allocate reserves for repairs and maintenance. This legislation has coincided with a dramatic increase in active condo listings across Miami-Dade, Broward, and Palm Beach counties, where the number of listings has nearly tripled in just one year. Homeowners are grappling with soaring homeowners association (HOA) fees, which have surged by nearly 60% over the past five years. In Miami-Dade, the median monthly fee has escalated from $567 in 2019 to $900 in 2023, while Broward County has seen a similar rise from $392 to $613. The law, enacted in 2022 following the tragic collapse of the Champlain Towers South building in Surfside, requires condo boards to maintain adequate reserve funds and conduct regular inspections. This legislation aims to prevent delays in necessary repairs, which were exacerbated by disputes among board members over funding. The increased financial burden has led many condo owners to list their properties for sale, with 20,293 active listings reported in the second quarter of this year. Real estate experts suggest that the rising costs are a consequence of older buildings needing to meet updated safety codes. Filippo Incorvaia, a Miami-based broker, noted that the infrastructure of a building significantly impacts its market value, leaving many owners in difficult situations. However, the construction of new buildings may provide some relief, potentially reducing the maintenance demands on existing properties.