By Alia ShoaibShareNewsweek is a Trust Project memberCondo prices in Florida have dropped 9.9 percent in the last 12 months, the largest decline in a year since the housing market crash in 2009.
Nick Gerli, the CEO of the real estate data and consulting company Reventure, shared data compiled by the company on X, noting that rising costs for owners and surging inventory are driving market pressures.
Why It Matters
Florida is home to roughly a fifth of all U.S. condos, and the sector has long served as an entry point for retirees, first-time buyers, and foreign investors.
A prolonged decline would have implications for affordability and the broader real estate market.
What To Know
The data shared by Gerli shows that this decline in condo prices is the largest since the 21.8 percent drop in 2009.
Condo prices have dropped dramatically in several parts of Florida, with Punta Gorda, Cape Coral, Tampa, and parts of Sarasota recording price drops of between 12 and 18 percent year-on-year, Gerli noted.
...He said that the slide in condo prices comes as inventory has surged, now above nine months of supply, indicating the number of months it would take for the homes currently on the market to sell. Six months of supply is considered a balanced market, while a supply above 6 months tilts toward a buyer’s market.
Gerli said that many condo owners are selling due to sharply higher costs, particularly homeowner association fees and insurance premiums, which have led more people to list their units.
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The statewide median price for condo-townhouse units was $300,000 in October, down 4.8 percent from a year ago, according to Florida Realtors.
Expanded safety requirements introduced after the collapse of the Champlain Towers South complex in Surfside in 2021 have also created steep renovation costs for condo owners.
Florida Governor Ron DeSantis signed legislation in June aimed at providing financial relief to condo owners, which may help ease pressures.
What People Are Saying
Tim Weisheyer, the president of Florida Realtors, told the New York Times in August that lower prices and higher inventory are a typical part of the real estate cycle: "Just a few years ago, buyers were struggling to shop the market and find what they wanted," he said, adding that the reversal is "providing individual buyers an opportunity to access home ownership."
What Happens Next
The Florida condo market will likely remain under pressure in the near term as high inventory and elevated ownership costs continue to weigh on prices.
It remains to be seen whether financial relief measures can stabilize the market, or if prices continue to be pushed lower.
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