Florida Condominium Market Facing Challenge with Rise in HOA Fees

Florida condominium facing challenge with rise HOA Fees

Florida and Texas are experience a rush in condominium supply , lead to monetary_value drop and increase inventory in major metropolitan area . In Tampa , the number of condominium for sale jump around 57 % in July compare to the previous year , while Houston proverb a stopping_point to 36 % addition in condominium list during the Lapp time_period . As a consequence , monetary_value in both city have decrease , with the median sale monetary_value fall almost 5 % in Tampa to 37,750 and 6.5 % in Houston to 59,000.

This tendency is not express to Tampa and Houston , as other city in Florida and Texas , such as Austin , Dallas , Fort Worth , San Antonio , Fort Lauderdale , Jacksonville , Miami , and Orlando , are also experience similar addition in condominium inventory . However , this situation is not brooding of the national condominium market , where inventory is rise , pending gross_sales are fall , and monetary_value are still on the rise , albeit not as dramatically as in Florida and Texas.

One of the main reason behind the addition in condominium list is the rise cost of homeowner association ( HOA ) fee in Florida . following the Surfside condominium collapse in a Miami suburb in the summer of 2021 , HOA fee have increase by More than 15 % in Tampa , Orlando , and Fort Lauderdale compare to the previous year . These fee hike are impute to extra care requirement and rise insurance costs in the aftermath of the tragic event.

The rush in HOA fee is not alone to Florida , as Redfin 's analysis found a 6 % median addition in fee nationwide . However , Florida metro , include Tampa , Orlando , Fort Lauderdale , West Palm Beach , and Jacksonville , experience significantly higher addition in HOA fee compare to other city across the state . These rise costs , unite with inflation and glide insurance premium , have push HOA due to record - high degree , departure condominium owner refer about their ability to afford their home . As a consequence , property values in condominium building are worsen in major metro area , devising it challenge for owner to sell their unit_of_measurement or afford the increase fee , coerce them to brand street_fighter decision about their housing situation.