The Condo Market Crisis - Effects of the Post-Surfside Safety Laws
The condo and real estate market in Florida has permanently changed. Will the perfect storm of high interest rates, skyrocketing insurance costs and increasing HOA fees lead to a crash in the condo real estate market?
After the Champlain Towers South collapse in Surfside, Florida lawmakers scrambled to make sure no building would face a similar fate. This led to the passing of the Building Safety Law, or Senate Bill 4, which led to a few material changes. First, all buildings over thirty years old are now required to have a structural inspection by the end of 2024. Second, HOAs can no longer waive reserves for capital expenditures. Both of these changes will either result in material increases to monthly HOA fees, or major special assessments in the coming year.
The condo market will likely see a major change in sale prices and valuations and many owners choose to sell in order to avoid the increased fees.
Thumbnail: Photo by Dmitry Mashkin on Unsplash
[1]https://commons.wikimedia.org/w/index...
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