South Florida is facing a worsening apartment crisis, with a new state law requiring condo associations to set aside funds for repairs and maintenance reportedly contributing to a surge in the number of units being built amid soaring association fees.
The total number of condo listings across Miami-Dade, Broward and Palm Beach counties has nearly tripled in a year as condo owners chafe under the burden of maintenance fees that have risen nearly 60 percent in the past five years.
In Miami-Dade County, the median monthly condo association fee rose from $567 in 2019 to $900 this year, according to Redfin data. Quoted by the Miami Herald.
Broward County condo owners also saw their HOA fees, which cover necessities like utilities, water, cable TV, landscaping and shared amenities, increase by 56% over the same period, from $392 in 2019 to $613 this year.
“If prices continue to go up, I don’t know how I can continue to live here,” Plantation condo owner Ingrid Vassel told the Herald.
Rising HOA fees are compounded by costly assessments needed to repair aging buildings and rising insurance costs exacerbated by powerful hurricanes and windstorms.
The Florida Legislature passed a bill in 2022 that will require condominium associations to set aside sufficient reserves to cover major repairs and to conduct reserve audits every 10 years.
The bill, signed into law by Gov. Ron DeSantis, requires condominium associations to provide inspection reports to owners and, if structural repairs are needed, must begin work within one year of the report.
The legislation was prompted by the 2021 collapse of the Champlain Towers South apartment complex in Surfside, killing 98 people.
An engineering report on the building completed in 2018 found significant structural issues, including deteriorating support beams and cracked columns.
Disagreements among condo board members over who should pay for millions of dollars’ worth of needed repairs have reportedly delayed resolving the issue.
Rising prices are leading an increasing number of apartment owners to put their properties up for sale.
In the second quarter of this year, there were 20,293 active listings of condos for sale in South Florida’s three largest counties. According to data from ISG World.
By comparison, there were just 8,497 active listings in the first quarter of last year.
Filippo Incorbaia, a Miami-based real estate broker, told The Post that condo owners in South Florida are paying to have older buildings renovated to bring them into compliance.
“Relocation from old buildings is a reality and the costs are prohibitive for many,” Incorvaia told the Post.
“A building’s infrastructure determines its market value for decades, creating untenable conditions for many people.”
The bright spot for apartment owners is that more new buildings will be built, reducing the need for maintenance.
“Finances will be more orderly and rules will be more strictly followed, resulting in fewer surprises and a safer end product,” Incorvaia said, adding, “Ultimately, I believe this is a must for our community.”
