By Daily Mail (U.S.) | Created at 2025-03-22 14:24:39 | Updated at 2025-04-04 19:49:42
1 week ago
A popular Florida city is facing a mass exodus as thousands of condo owners are ditching their homes amid skyrocketing HOA fees.
Miami is known for its beaches, beautiful weather and enclave of wealthy residents, but some of its most affluent are looking to ditch the coastal city as statewide safety regulations are raising homeowner association fees to repair buildings.
Nearly 2,000 homes worth more than $1 million have been listed in the Miami area, according to Zillow.
More than 41,000 homes are listed in the city, or roughly 1.5 percent of the Miami's housing - an increase of 57 percent year-over-year, according to Propstream.
The city has recently been named the most overvalued market in the world, with an average price of $525,000, according to the outlet.
'Even with the recent declines of the stock market - which has an impact on luxury deals - South Florida $1 million and up home sales continues exceling,' 2025 MIAMI Association of Realtors Chairman Eddie Blanco said in a statement.
'The world loves Miami.'
However, despite the staggering number of listings, Miami has been rated the second best housing market in the US in 2025, with West Palm Beach ranking first, according to Cision.
Miami is known for its beaches, beautiful weather, and enclave of wealthy residents, but some of its most affluent are looking to ditch the coastal city as statewide safety regulations are raising homeowner association fees to repair buildings
More than 41,000 homes are listed in the city, or roughly 1.5 percent of the Miami's housing - an increase of 57 percent year-over-year
Nearly 2,000 homes worth more than $1 million have been listed in the Miami area, according to Zillow
But for those wanting to break into the housing market in the Florida city might have a harder time as condo prices have risen 140.7 percent in the last decade, according to the outlet.
Single-family homes have also risen in price since last year, increasing 167.3 percent percent, according to Cision. The median price in the city is $655,000.
Last fall, a group of Palm Beach condo owners fought back after facing a potential $3,000 hike in fees each month amid the real estate crisis.
Residents of Harborage Condos in Palm Beach banded together to take on statewide regulations that could lumber them with eye-watering costs.
Under the Structural Integrity Reserves Study (SIRS), Florida is requiring condo owners to undergo surveys for repairs to comply with new state laws that were passed after the collapse of the Champlain Tower South in Miame-Dade county, which killed 98 people.
Darlene VanRiper, who is leading the Harborage Condos efforts to scrutinize the new laws, said an engineer recommended $6,480,000 worth of repairs to the buildings to meet SIRS needs - or an extra $3,000 per home each month.
'We need to do something, and we need to do it now,' Darlene VanRiper told NBC affiliate WPTV at the time. 'It is time to rally together. You'd be amazed what people can do when they're united.
'When you consider everything that people have on their plate right now, inflation, insurance and now this? It's unsustainable,' she added.
But for those wanting to break into the housing market in the Florida city might have a harder time as condo prices have risen 140.7 percent in the last decade
The condo owners' fight against rising fees comes as top investor Grant Cardone, who owns 15,000 properties, told Dailymail.com 80 percent of condo owners in Florida are at risk of losing money on their properties, in part thanks to the new laws.
Florida's condo owners have been forced to slash prices by up to 40 percent to sell their properties rather than pay huge repair costs to comply with SIRS.
An estimated 360,000 property owners in South Florida alone may not be able to afford the repairs required by the new law.
Condo sales are also declining in major cities in Texas, sparking fears the state could be following in Florida's footsteps.
Buyers were initially drawn to Galveston during the COVID pandemic, taking advantage of work from home orders to buy themselves a house near the beach that they could escape to, according to the Galveston Daily News.
For some, buying on the barrier island came with the perk of being able to convert the properties into short-term rentals in a get-rich-quick scheme flaunted on social media.
'People were saying, "Oh yeah, buy a vacation home rental in Galveston and you will be making $5,000 a week; that's $20,000 a month and you only have... $1,000 in expenses,' Claire Reiswerg, co-owner of Sand 'N Sea Properties recounted.
Single-family homes have also risen in price since last year, increasing 167.3 percent percent, according to Cision. The median price in the city is $655,000
Florida took action after the Champlain Tower South collapse, which killed 98 people, by requiring condo owners to undergo surveys for repairs to comply with state laws that were passed
'We’re sitting there reading that stuff and saying "they’re out of their minds,"' said Reiswerg, whose company manages vacation rentals.
'People were saying, "Oh yeah, buy a vacation home rental in Galveston and you will be making $5,000 a week; that's $20,000 a month and you only have... $1,000 in expenses,' Claire Reiswerg, co-owner of Sand 'N Sea Properties recounted.
'We’re sitting there reading that stuff and saying "they’re out of their minds,"' said Reiswerg, whose company manages vacation rentals.
Florida took action after the Champlain Tower South collapse, which killed 98 people, by requiring condo owners to undergo surveys for repairs to comply with state laws that were passed.
The SB 4-D Bill, which was passed in May 2022, demands all state condos that are 30 years and older to undergo an inspections.
