Florida Condos Hit Hardest Since the Great Recession as Prices Tumble

Yes, you read that right! Florida condo prices are experiencing a significant downturn, with values declining by 9.9% in the last 12 months. This represents the steepest annual drop since the housing market crash of 2009, signaling potential shifts in the Florida real estate market.

Florida Condos Hit Hardest Since the Great Recession as Prices Tumble

What's Causing This Condo Plunge?

According to data shared by Nick Gerli, CEO of Reventure Consulting, on X (formerly Twitter), several factors are contributing to this decline:

• Rising Costs for Owners: Homeowner association (HOA) fees and insurance premiums have skyrocketed, making condo ownership less affordable.
• Surging Inventory: The supply of condos on the market has increased dramatically, now exceeding nine months' worth of inventory. This indicates a buyer's market and puts downward pressure on prices.

Florida condo values are down -9.9% in the last 12 months.

That's the biggest one-year decline since 2009.

Condo inventory is now above 9 months of supply, indicating more declines next year are likely, as HOA and insurance costs are still causing owners to sell.

So far in… pic.twitter.com/wO33XVQ5r2

— Nick Gerli (@nickgerli1) November 18, 2025

Key Data Points to Consider

Let's delve into some key data points that highlight the severity and scope of this decline:

• Statewide Decline: Florida condo values are down an average of 9.9% year-over-year.
• Inventory Surge: With over nine months of condo supply, a buyer's market is firmly in place.
• Impact So Far: Condo values are currently down 13% from their peak during this cycle. While significant, it's important to remember the 55% plunge experienced during the Great Financial Crisis (GFC).

Where Are the Biggest Declines Happening?

The data reveals that certain Florida markets are experiencing more substantial drops than others:

The markets with the biggest YoY condo value decline in Florida are:
* Punta Gorda: -18.6%
* Cape Coral: -14.2%
* Tampa: -12.3%
* North Port/Sarasota: -12.2%
* Sebastian: -11.9%
South Florida condo declines:
* Broward (-11.9%)
* Palm Beach (-11.4%)
* Miami-Dade (-7.2%)

What Does This Mean for Buyers and Sellers?

For buyers, this could present an opportunity to enter the Florida condo market at more attractive prices. Some condos are starting to look genuinely affordable again.

However, for sellers, it's a different story. Increased competition and downward price pressure create a challenging environment. Many homeowners may be listing their properties due to the burden of rising HOA and insurance costs, leading to a saturated market.

Why is Florida so Important?

Florida holds significant importance in the U.S. housing market:

• High Condo Concentration: The state is home to roughly one-fifth of all condos in the country.
• Entry Point: Condos have traditionally been a popular entry point for retirees, first-time buyers, and foreign investors.

A decline in Florida's condo market can have wider implications for affordability and the broader real estate sector.

Beyond the Numbers: Personal Thoughts and Observations

From my experience, real estate cycles are inevitable, with ups and downs influenced by economic factors, demographics, and unforeseen events. The recent surge in HOA fees and insurance premiums in Florida has undeniably created a perfect storm for the condo market. The stricter safety regulations introduced after the Surfside condo collapse in 2021, while necessary, have also created financial burdens on owners, as buildings now face expensive renovation requirements.

I remember talking to a friend a few months back who sold her property to move back into her parents' Florida residence because the condo fees had increased so much. It's not just snowbirds anymore in Florida who face these issues but full-time residents also.

Government Intervention: Can it Help?

Florida Governor Ron DeSantis signed legislation in June aimed at providing financial relief to condo owners. The effectiveness of these measures remains to be seen. It's a balancing act – addressing the immediate financial pressures while ensuring the long-term structural integrity and safety of condo buildings.

The Expert Viewpoint

Tim Weisheyer, president of Florida Realtors, offered a more optimistic view, suggesting that the current market conditions are a normal part of the real estate cycle. He sees the shift as an opportunity for individual buyers to access homeownership more easily.

Looking Ahead: What's Next?

The pressure on the Florida condo market will likely continue in the short term. High inventory and elevated ownership costs will continue to weigh on prices. Whether financial relief measures can stabilize the market is uncertain.

I think it completely depends on the macroeconomic situations in the US overall because people move in and out of places depending on employment availability.

In Conclusion

The Florida condo market is currently navigating a challenging period. While declining prices present opportunities for some, they also pose concerns for others. Keeping a close eye on market dynamics, economic indicators, and legislative actions will be crucial for understanding what the future holds for Florida condos.