Homeowner opted for rental: Insights into the decision behind selling a Florida property
Swapping out his trash for moving boxes one fateful night, Eli caught his neighbor leaving his neighborhood, no longer bound by a lease but moving under duress. Eli's neighbor, contemplating his options, tossed out a proposition: if he knew someone looking to sell, he'd be interested in buying. Eli, ever the opportunist, seized the moment.
In no time flat, Eli had the goods on a cash-in-hand deal to sell his condo. This wasn't a spur-of-the-moment decision; rather, it was a long-awaited move prompted by life's alterations. Seven years had passed since Eli purchased his condo in sunny Florida, and many factors conspired to make homeownership a weighty, costly burden.
The most substantial shift? Eli's mortgage payment. With a secured mortgage rate and purchase price, the increased expenses in the form of insurance premiums, property taxes, and condo association fees left him agitated. Adding salt to the wound, frequent assessments and clashes with fellow condo owners only added to his worries.
In light of all these expenses and the stress they brought, Eli concluded that his peace of mind mattered more than staying tethered to the world of homeownership. Now, he resides in a swanky, new apartment just two blocks away, boasting a community pool, private beach, gym, sauna, and double the square footage for a monthly rent $200 less than his condo's cost! He's far from alone; our website's 2025 Rent vs. Buy Study indicates that opting for renting rather than a mortgage is more wallet-friendly across the 50 largest U.S. metropolises.
Florida's Condo conundrum
When Eli first unlocked his one-bedroom, ground-floor condo in 2018, his monthly Homeowners Association (HOA) payment was a mere $350. Over the years, this figure ballooned to a staggering $800 per month, equating to a whopping annual cost of $9,600 and a startling 128% increase within just seven years! The national average monthly payment for HOA fees in 2023 was a smidgen under $243, according to data from the 2023 American Housing Survey conducted by the U.S. Census Bureau.
Condo owners in Florida have endured sharp spikes in HOA fees. In 2024 alone, Tampa saw an over 17% year-over-year increase in HOA fees, while Fort Lauderdale and Orlando witnessed median yearly increases surpassing 16%.
The monthly payment wasn't the only unexpected expense Eli encountered. Often, his condo association would levy special assessments, which were a one-time charge for unforeseen, costly repairs and improvements. As an older condo building, combined with tougher Florida regulations, these assessments proved hard to ignore. Their charges covered everything from fixing the pool to resurfacing the parking lot to a hefty sum to reconstruct a deteriorating seawall.
Not only did residents in Eli's building feel the pinch of these assessments, but following the 2021 Surfside Miami condo collapse, Florida state legislators passed Senate Bill 4-D. This legislation required condo associations to maintain funds in reserve for building repairs and inspections. Prior to this bill, condo owners could vote to shrink or even eliminate reserve requirements.
What exactly is a special assessment?
As a condo owner, you're required to pay monthly HOA dues. However, if your building requires more funds than the allocated budget provides, your HOA can levy a special assessment. In the Land of Sunshine, there's no limit to the amount of special assessments a condo board can impose. Some insurance providers offer loss assessment endorsements, which can help cover unforeseen, hefty special assessment bills. However, these policy add-ons come at an additional cost.
How does insurance work with condos?
Insurance policies function in distinct ways for condominiums versus single-family homes. With a house, you own almost everything, from the roof to the foundation to the surrounding land. Your homeowners insurance policy typically covers everything. On the other hand, condo insurance is shared between the condo association and the condo owner.
Andrew Lester, president of FirstService Financial - a financial services company dedicated to community management– explains, "The condo association is responsible for purchasing adequate coverage to cover any damages to the common areas of the building, such as roofs, structural components, and interior and exterior walls, ceilings, and floors. The condo owner should purchase a personal policy to cover everything within their unit, including fixtures, appliances, wall coverings, cabinetry, and contents."
Part of a condo's HOA fee covers the cost of the building's insurance policy, among other shared expenses like landscaping, garbage, and building utilities. When the building's insurance policy increases, condo owners often shoulder part of the increased costs in their HOA fees.
Florida's Current Condo Quandary
During the pandemic, Florida's housing market flourished, as eager buyers flocked to the sun-soaked state. Lately, however, Florida's condo market has faced stormy waters. In March 2025, the state registered a 4.5% year-over-year decline in the median sales price for townhouses and condos, marking the 9th consecutive month of year-over-year price decreases. The median time to contract and the median time to sell - 62 days and 99 days, respectively – have also risen.
Rising HOA fees play a significant role in this dilemma. Increased insurance premiums, reserve requirements, and special assessments often make owning a condo a more expensive headache.
"The reserve requirements, while well-intentioned...are putting a large strain on our people, our working men and women, and their families, who are now in a position where...they're being forced to sell their condos, and yet the market is not absorbing these condos, leading to financial losses for these individuals who have invested so much in their properties," Miami-Dade County Commissioner René Garcia stated during a press conference on April 10.
Addressing the condo conundrum
At the state level, legislators in the House have proposed legislation to bolster transparency and grant more financial flexibility to condo associations. House Bill 913 permits condo associations to fund reserves utilizing lines of credit and loans, in addition to special and regular assessments. This change enables the associations to explore alternative funding options, such as loans, rather than focusing on condo owners for reserve requirements outlined in Senate Bill 4-D.
Governor Ron DeSantis has yet to give the legislature a stamp of approval, but the majority of experts anticipate that he will sign House Bill 913, effectively making it law on July 1, 2025. Besides offering condo associations alternative reserve funding avenues, the law would also:
- Enable condo associations to invest their reserve funds
- Authorize associations to secure loans to fund repairs without approval from association members
- Prohibit associations from employing or being owned by anyone whose community association manager license has been revoked
- Grant associations the power to hold board meetings either in person or through video
Florida Realtors and the National Association of Realtors (NAR) are also advocating for policy adjustments at the national level in regards to financing. Currently, several prerequisites must be fulfilled by the condo association for a buyer to qualify for a low-down payment conventional loan. These conditions involve being on Fannie Mae's approved list, maintaining 10% of income in reserves, and having less than 10% of the units within the condominium.
If the condo fails to meet these criteria, a buyer may be required to put up as much as 25% down.
More information: Should I buy a house now, or should I wait?
Floridians head to neighboring states
Transformations in Florida's housing market unfold gradually, yet not quickly enough for everyone. A Cotality (formerly CoreLogic) report revealed that applications for mortgages from both in-state and out-of-state buyers are dwindling. Instead, Floridians are turning to neighboring states – Georgia, North Carolina, Texas, Tennessee, and South Carolina – for home loans.
"The substantial appreciation in Florida’s mortgage prices, coupled with soaring home insurance rates and the threat of hurricanes, has led many Floridians to explore other nearby states," explains Selma Hepp, chief economist for Cotality. "As people depart, they are finding refuge in states offering relative affordability, as well as access to employment centers – they are seeking the same ingredients that originally made Florida attractive."
For condo owners residing in Florida, particularly those stationed along the coast, escalating costs and risks are quickly overshadowing the benefits. "There's only so much worth in a beautiful view," muses Eli. The extent to which Florida's policymakers can respond and alleviate the problem remains to be seen. For now, many fellow Floridians, like Eli, are opting to sell their condos and relocate to greener pastures.
In the light of escalating costs and burdensome expenses, Eli decided to sell his condo, preferring the financial stability offered by renting a larger apartment for $200 less than his condo's rent. Due to the continuous increase in HOA fees, steep special assessments, and insurance premiums, the condo market in Florida has exhibited a decline in median sales prices and longer selling times.
Arising from these challenges, legislation such as House Bill 913 is being proposed, hoping to enhance transparency, provide financial flexibility to condo associations, and endorse alternative reserve funding options. Meanwhile, Florida residents are increasingly seeking mortgage opportunities in neighboring states, seeking affordable housing and employment centers previously associated with the Sunshine State.
