Florida Condo Prices See Sharpest Drop in 15 Years—as Insurance and HOA Costs Surge

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Rising homeowners association fees and insurance premiums are putting the squeeze on Florida's condo owners.

As a result, condo prices are sinking. In August 2025, the median sale price for a Florida condo was $285,000, down 8.1% from a year earlier and 14% below the July 2023 peak, according to Realtor.com® research.

This marks the largest August year-over-year decline since 2010, according to a Realtor.com analysis of deed records

Between August 2009 and August 2010, condo prices fell 18.4%.

"Florida’s condo market appears to be softening due to several factors, including rising home insurance costs, elevated HOA fees, and increasing climate-related risks," says Hannah Jones, senior economic research analyst at Realtor.com.

The aftermath of the Surfside collapse

One reason HOA fees for Florida condos skyrocketed was because of the deadly Surfside collapse.

The Champlain Towers South condo in Surfside, FL, partly collapsed on June 24, 2021, killing 98 people and injuring 11 others.

The condo building was constructed in 1981, and investigators later found that several design and construction features were not up to code.

Investigators discovered deteriorated concrete in the basement parking garage due to water damage, and deficiencies in the pool deck's alignment and reinforcement as well.

A new building safety law mandates that condo buildings over 30 years old pass a structural integrity inspection. Then it requires homeowners and condo associations to finance the needed maintenance and repair work.

This has led to a significant jump in HOA fees and assessments, and even in buildings without increases yet, many owners are anxious that they're imminent.

"I’ve definitely seen a shift in buyer confidence when it comes to Florida condos since the Surfside tragedy," says real estate agent and investor Ron Myers of Ron Buys Florida Homes. "A lot of buyers are more much cautious now."

Insurance prices on the rise

The Realtor.com 2025 Climate Risk Report highlights Florida as one of the most vulnerable states for climate-related insurance pressures. 

In a Florida condo, owners must carry their own insurance on top of the HOA’s master policy, and the cost of both is climbing.

Miami homeowners carry the heaviest insurance burden among the top 100 U.S. metros, with premiums averaging $22,718 a year.

In high-risk markets like Florida, flood coverage must be purchased separately, and hurricane deductibles can reach 2% to 5% of the dwelling coverage.

"Insurance costs have risen and continue to rise in Florida," Cara Ameer, a real estate agent with Coldwell Banker in Florida, tells Realtor.com. "Premiums have been going up over the last several years, as numerous carriers stopped writing policies in the state after recent climate disasters."

More price declines likely, warns one expert

The CEO of the real estate data and consulting company Reventure, Nick Gerli, recently posted on X about Florida's sinking condo values, saying more declines next year are likely.

"Condo owners are unloading units left and right—and they’re doing it at big discounts," he wrote on Instagram. "Some buildings are now charging $2,000 a month or more in HOA fees—and owners simply can’t handle it."

Gerli said demand for condos is sitting near one of the lowest levels on record, leaving sellers with no choice but to slash prices.

"The higher carrying costs associated with owning a condo are definitely triggering people to unload their units," says Ameer. "Older inventory is really taking a hit as many people are trying to jump ship."

Myers says he's getting more calls from condo owners looking to sell.

"Many of them are retired or on fixed incomes, and the extra costs are just getting out of hand," he says.

Condo prices still above pre-pandemic levels

Despite the recent cool down, Florida condo prices still remain roughly 54% above pre-pandemic levels, according to Realtor.com research.

"This means buyers are still contending with historically high costs, making today’s insurance and HOA burdens even more difficult to absorb," says Jones. "As a result, demand for condos in Florida has softened, and prices have cooled."

But Jeff Lichtenstein, CEO and broker at Echo Fine Properties in Palm Beach, tells Realtor.com he doesn't see this slump lasting long. "I don't see demand for Florida condos waning long term," he says. "People love the views and condo living."

Originally posted at Realtor by by Julie Taylor