Introduction to Florida’s Condo Market
The COVID-19 pandemic sent condo prices skyrocketing in Florida, but now the market is experiencing a significant shift. New building regulations and the absence of foreign buyers are contributing to a surge in condo supply, creating a buyer’s market. The tragic collapse of the Champlain Towers South complex in Surfside in 2021 led to the Florida Legislature mandating inspections for condo buildings 30 years old and older, resulting in hefty renovation bills for owners. Many are now putting their units up for sale, flooding the market.
The Impact of New Building Regulations
After the Surfside tragedy, the Florida Legislature mandated inspections for condo buildings 30 years old and older. As a result, owners are facing significant renovation bills, forcing many to put their units up for sale. This influx of new listings has led to a market saddled with 10 months’ worth of supply, the most since 2011. In Q2 2025, the number of available listings statewide was nearly 25% higher than a year before.
Decline of Foreign Buyers
Foreign buyers, primarily from Latin America, have long been a driving force in Florida’s condo market. However, their presence has significantly declined, with sales to foreigners falling to the lowest level since at least 2015. The Trump administration’s immigration crackdown is likely to persist, contributing to this trend, according to Peter Zalewski, an independent condo analyst.
Current Market Conditions
The median sale price of condos and townhouses has dropped more than 6% over the past year, to $310,000, according to a report from the Florida Realtors trade association. This report compiled data from the Multiple Listing Service, a database used by brokers. The market has shifted significantly, with lower prices and higher inventory becoming a reality. "We’re in a completely different world from when people were queuing up to see open houses and multiple offers were coming in above asking price," Zalewski said.
Benefits of the Current Market
While the current market conditions may seem gloomy, there are benefits to the shift. Lower prices and higher inventory are part of a typical real estate cycle, said Tim Weisheyer, the president of Florida Realtors. The new building regulations, although expensive, will improve transparency and make homes safer. "Just a few years ago, buyers were struggling to shop the market and find what they wanted," Weisheyer added. The reversal is "providing individual buyers an opportunity to access home ownership."
Conclusion
The surge in condo supply in Florida has created a buyer’s market, with lower prices and higher inventory. While the decline of foreign buyers and the impact of new building regulations have contributed to this shift, there are benefits to the current market conditions. As the market continues to evolve, it’s essential for buyers and sellers to understand the current conditions and how they can take advantage of the opportunities available.
FAQs
Q: What is causing the surge in condo supply in Florida?
A: The surge in condo supply is due to the impact of new building regulations and the decline of foreign buyers.
Q: How have new building regulations affected the market?
A: New building regulations have resulted in hefty renovation bills for owners, forcing many to put their units up for sale and flooding the market.
Q: What is the current median sale price of condos and townhouses in Florida?
A: The median sale price of condos and townhouses has dropped more than 6% over the past year, to $310,000.
Q: Is the current market conditions a cause for concern?
A: While the current market conditions may seem gloomy, they are part of a typical real estate cycle, and there are benefits to the shift, including lower prices and higher inventory.
