Redfin Reports Condo HOA Fees Surge in Florida Amid Insurance Crisis

HOA dues are up more than 15% from a year ago in Tampa, Orlando and Fort Lauderdale, compared with a median gain of 6% across the 43 metros Redfin analyzed

SEATTLE--(BUSINESS WIRE)-- (NASDAQ: RDFN) — In Tampa, FL, the median monthly homeowners association (HOA) fee jumped 17.2% year over year during the three months ending July 31, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. That’s the steepest increase among the 43 U.S. metropolitan areas Redfin analyzed, and compares with a median increase of 5.7% across those metros. Next came two other Florida metros: Orlando (16.7%) and Fort Lauderdale (16.2%). HOA fees also rose in West Palm Beach (12.8%), Jacksonville (7.6%) and Miami (5.7%).

Redfin analyzed condo/co-op HOA dues and sale prices on MLS listings in 43 of the most populous metropolitan areas. HOA dues are maintenance fees required by shared housing developments that go toward building repairs, operation costs, staff, amenities like pools and fitness centers, landscaping and more.

It’s common for HOA fees to increase over time as property prices increase, but that’s not what’s happening in Florida. Condo prices are actually falling in many parts of the Sunshine State, in part because HOA fees have surged so much. There are two primary reasons HOA dues are on the rise:

1. The Surfside condo collapse: On June 24, 2021, a 12-story condo building in Surfside, FL (part of the Miami metro area) partially collapsed, killing nearly 100 people. As a result, Florida on May 26, 2022 signed into law Senate Bill 4-D, which requires structural inspections for condos and additional money to be set aside for repairs. Many homeowners associations are hiking fees in order to comply with the new safety regulations, and also doling out hefty special assessments.
2. Skyrocketing insurance costs: Florida is the epicenter of the housing insurance crisis. Premiums have soared as natural disasters have intensified and insurers have stopped doing business in the state. Some homeowners associations are raising dues to help cover the increase in insurance costs. Nearly three-quarters of Florida homeowners say they’ve seen a rise in insurance costs or changes in coverage, according to a recent Redfin-commissioned survey.

Inflation, which has been growing quickly in Florida, is another reason HOA dues are climbing, as it means the cost of maintenance and repairs is rising.

“Many buildings—even those without amenities—now have HOA dues north of $1,000 a month,” said Rafael Corrales, a Redfin Premier agent in Miami. “And with special assessments getting tacked on, a lot of condo owners who are retired and/or on a fixed income are being forced to sell and relocate because they can’t keep up with the payments.”

Florida condo market summary

U.S. metro area	YoY change in median monthly HOA dues: 3 months ending July 31, 2024	Median monthly HOA dues: 3 months ending July 31, 2024	YoY change in median condo sale price: July 2024	Median condo sale price: July 2024
Tampa, FL	17.2%	$614	-4.9%	$237,750
Orlando, FL	16.7%	$467	-0.5%	$219,000
Fort Lauderdale, FL	16.2%	$611	-4.2%	$230,000
West Palm Beach, FL	12.8%	$652	1.9%	$265,000
Jacksonville, FL	7.6%	$470	-6.6%	$270,000
Miami, FL	5.7%	$835	-2.2%	$406,000

HOA fees in Miami likely posted the smallest increase among major Florida metros because they’re already so expensive. At $835, the median monthly HOA due in Miami is higher than any other metro Redfin analyzed. That’s in part because Miami HOA dues surged during the pandemic, rising as much as 66% during the three months ending May 31, 2021—just before the Surfside condo collapse.

Condo prices are falling across Florida

In Jacksonville, condo sale prices fell 6.6% year over year in July—the biggest decline among the metros Redfin analyzed. It was followed by Tampa, which saw a 4.9% drop. There were also declines in Fort Lauderdale (-4.2%), Miami (-2.2%) and Orlando (-0.5%). By comparison, condo prices posted a median gain of 1.9% across the 43 metros Redfin analyzed.

“Condos are really taking a hit. Prices are hurting,” said Eric Auciello, a Redfin sales manager in Tampa. “Condo fees are skyrocketing due to increased insurance costs. These additional fees have adversely affected the value of many units.”

Tampa has one of the lowest median condo sale prices among the metros Redfin analyzed ($237,750), but some of the highest median monthly HOA dues ($614).

The condo crisis isn’t just impacting Florida. Redfin agents from Seattle to Denver have reported jumps in HOA costs. Some said condo owners are having trouble selling as fees continue to rise.

“When a buyer falls in love with a condo, I make sure they do their homework by researching whether their lender will approve of the HOA,” said Julie Zubiate, a Redfin Premier agent in the Bay Area. “Lenders look to see whether a condo’s HOA is on the Fannie Mae approved list, and also look into whether the HOA is sufficiently insured and has any special litigation.”

To view the full report, including charts and additional metro-level data, please visit: https://www.redfin.com/news/hoa-fees-surge-florida-2024

About Redfin

Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, rentals, lending, title insurance, and renovations services. We run the country's #1 real estate brokerage site. Our customers can save thousands in fees while working with a top agent. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Customers selling a home can have our renovations crew fix it up to sell for top dollar. Our rentals business empowers millions nationwide to find apartments and houses for rent. Since launching in 2006, we've saved customers more than $1.6 billion in commissions. We serve more than 100 markets across the U.S. and Canada and employ over 4,000 people.

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Source: Redfin