Condominium sales and prices in Miami, Jacksonville and Tampa and other parts of Florida have dropped over the past year, largely due to the soaring cost of property insurance and association fees, according to Redfin, a U.S. real estate and tracking service.
“The average cost of homeowners insurance across Florida increased by about 40% in 2023 alone, according to reports, and homeowners association (HOA) fees are multiplying for many condo buildings,” the Redfin report said. “In addition to slowing demand, the rising cost of insurance and fees are pushing prices down.”
The report is not surprising to insurance brokers and agents, who have seen some condominium associations’ property and liability insurance premiums quadruple, while policy limits have been slashed in Florida’s still-distressed market.
Legislation that would help to some degree, by allowing surplus lines to cover more condo associations, is still pending in the Florida Legislature. Senate Bill 1716 and SB 1503 were approved by second Senate committees in February. An effort to allow the state-backed Citizens Property Insurance Corp. to insure condo buildings with rental units has faced opposition from Citizens and has been left out of bills.
Another bill, creating a pilot program to provide wind-mitigation grants for condominiums, appears to be headed for passage this year, but it would apply only to buildings that are three stories or less.
Redfin’s data show that Florida condo prices and sales have fallen while prices have risen by 8.4%, on average, for the United States overall, from January 2023 to January 2024.
In Jacksonville, Florida, the recent median sale price for a condo was $254,000, a 6.5% drop from the previous year. Condo sales in Jacksonville showed the biggest drop for major Florida metro areas, falling more than 27% from the previous year, Redfin noted.
In Miami, the median price dropped 2.5% and sales fell 8.7%. The Orlando area saw prices drop 4.8% but sales rose by more than 6%. In Tampa, the median price declined by just 1% but sales slipped by 4.4%, the report noted.
Topics
Florida
Pricing Trends
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Alice J. Roden started working for Trending Insurance News at the end of 2021. Alice grew up in Salt Lake City, UT. A writer with a vast insurance industry background Alice has help with several of the biggest insurance companies. Before joining Trending Insurance News, Alice briefly worked as a freelance journalist for several radio stations. She covers home, renters and other property insurance stories.