Florida is contending with a condo crisis, and the ballooning costs of ownership are a big reason why.
Retirees Rob and Karen Dickson moved from upstate New York to Punta Gorda, Fla., in 2021. They paid $319,000 for a condo with a terrace on the third floor, overlooking a golf course inside their gated community.
After nine holes, they would have lunch at the club and then go for a swim.
“It was wildly affordable,” Rob said.
But then their ownership costs began to rise. Two years on, their insurance rates doubled after a hurricane, and the unit was hit with a $7,200 special assessment to pay for building upgrades, which they paid in four monthly installments after insurance covered $2,000 of the cost. Their HOA fees soared by 25% to nearly $800 a month. Now, these fees are up to $1,000.
The couple listed the unit for sale last summer. They competed with 43 other condos for sale in the same community and accepted an offer for $358,500, about $20,000 below their asking price. They moved back to New York to be closer to their grandchildren because they could no longer afford the travel.
“Florida is actually paradise,” Rob said. “It was superb, but things changed.”
The costs associated with owning a Florida condo have exploded. A combination of insurance increases, special assessments and limited financing options have elevated costs beyond what many are able to bear. That has sparked a wave of sales, flooding the market and straining prices.
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