{"id":16261,"date":"2025-06-12T23:14:53","date_gmt":"2025-06-13T03:14:53","guid":{"rendered":"https:\/\/citystuff.com\/miami\/?p=16261"},"modified":"2025-06-12T23:14:53","modified_gmt":"2025-06-13T03:14:53","slug":"condo-buying-hits-10-year-low","status":"publish","type":"post","link":"https:\/\/citystuff.com\/miami\/2025\/06\/12\/condo-buying-hits-10-year-low\/","title":{"rendered":"Condo Buying Hits 10-Year Low"},"content":{"rendered":"

Investors’ Condo Buying Hits One of the Lowest Levels in 10 Years<\/h1>\n

The analysis, conducted by real estate brokerage firm Redfin, examined county-level home purchase records across 39 of the most populous U.S. metropolitan areas dating to 2000. Investors bought about 8,500 condos in the first quarter this year, down 3% year over year to the lowest level in 10 years. That is, with the exception of the second quarter of 2020, when \u201cthe start of the pandemic nearly ground the housing market to a halt,\u201d Redfin said.<\/p>\n

Contributing Factors<\/h2>\n

Contributing to the decrease has been Florida\u2019s surging association fees and rising insurance costs \u201camid the increase in climate-driven natural disasters,\u201d according to Redfin. \u201cAdditionally, many of Florida\u2019s condo buildings are oceanfront, making them particularly vulnerable to climate disasters.\u201d <\/p>\n

Shift in Investment Preferences<\/h2>\n

A Safer Bet for Investors<\/h3>\n

While condo purchases have dropped 3%, other purchases have been holding steady: Investors\u2019 purchases of U.S. homes increased 2% year over year in the first quarter. Greg Eisinger, a partner at the Eisinger Law firm, which focuses on real estate law, said that\u2019s no surprise: \u201cIf I was an investor, I probably would look for single-family housing over condominiums,\u201d Eisinger said. \u201cI think that\u2019s the safer bet for investors these days.\u201d<\/p>\n

Reasons for the Decline<\/h3>\n

Eisinger said one reason why condo purchases are down is because people are concerned about an increase in the number of hurricanes weathered by Florida, where there are many beachfront condos. John Cadden, managing principal at Condominium Advisory Group, said the decline in the condo purchases also has been caused by interest rates on condos doubling in the past few years. Cadden\u2019s advisory group consults condo associations from around the state that are facing issues. \u201cWhen interest rates started going up, that had more effect than the pandemic itself,\u201d he said.<\/p>\n

Boosting Safety<\/h2>\n

New safety guidelines were enacted after the 2021 collapse of the Champlain Towers South condo building in Surfside that killed 98 people. Condo associations also have raised fees to cover inspections of older buildings and reserve a set amount of funding for maintenance and future repairs, as required by the Florida Legislature. The changes were enacted to improve safety, but contributed to the rising costs. \u201cMost associations try to keep the dues current while not increasing their expenses,\u201d Eisinger said. \u201cBut now kind of everything has come to a head, and they have no choice.\u201d<\/p>\n

Legislative Response<\/h2>\n

In April, the Florida Legislature passed a bill that would give associations more time and flexibility while they gather funding to meet the reserve requirements. Gov. Ron DeSantis is expected to approve it. Florida condos\u2019 dwindling popularity may ultimately benefit some buyers who\u2019d face less competition \u2014 but only to a certain degree. \u201cFlorida bounces back,\u201d said Cadden, from the advisory group. \u201cIt\u2019s still a place for people to move to. It\u2019s still a growing state.\u201d<\/p>\n

Conclusion<\/h2>\n

The decline in investor condo buying is a significant shift in the market, driven by a combination of factors including rising costs, safety concerns, and changes in investment preferences. While this may present opportunities for some buyers, it also highlights the need for ongoing efforts to improve safety and affordability in the condo market.<\/p>\n

FAQs<\/h2>\n