The once-booming condo market in Florida is in crisis.
Miami-Dade’s market in particular is faltering, according to a recent report by the county property appraiser’s Office.
Even as overall values of existing homes and commercial property grew slightly in Miami-Dade at the beginning of 2025, for existing condominiums, values dropped from the start of 2024.
The values of existing buildings and new construction grew by 8.5 percent — still a noticeable drop from 10.7 percent growth last year.
The report then zeroed in on existing condos only, and found the overall value dropped about 1 percent from the start of 2024.
In some areas, values had dropped by as much as 6.6 percent since last year.
‘The condos are the next great crisis, because of a perfect storm,’ property appraiser Tomás Regalado said at a press conference.
A combination of stricter state regulations, rising maintenance costs, and expensive insurance premiums are driving down buyer demand in the condo market, he added.
The once-booming condo market in Florida is in crisis as values plummet
Property appraiser Tomás Regalado said Florida condos are the ‘next great crisis’
The report reviewed more than 900,000 properties across the county and were able to calculate their taxable values, which is the figure used to determine property tax bills.
It marks the first time since 2021 that the county has seen single-digit gains.
‘In a nutshell, the real estate market — after years of sometimes wild growth — appears to have stabilized,’ Regalado said.
When zeroing in on existing condos, values were down less than 1 percent compared to the start of 2024.
While the value of existing condos fell by around 1 percent compared to the start of 2024, the situation is far worse in some local markets.
Miami Shores saw condo values plunge 6.6 percent. In Coral Gables, condo values dropped 5 percent.
In Aventura and North Bay Village, both dropped 4 percent. Condo values in North Miami, meanwhile fell 3.4 percent.
South Miami saw condo values drop 1.9 percent over the time period.
The overall value of condos in the county have dropped about 1 percent from the start of 2024. Condo values in North Miami fell 3.4 percent, making it among the worst hit areas
Regalado did not provide breakdowns for the county’s 34 municipalities, but said these areas were among the weakest.
But not all areas are suffering.
Condo values soared 18 percent in West Miami, despite it having only 83 condominium units at the beginning of 2024.
Values grew in Opa-locka, where values went up 12 percent. Hialeah Gardens rose 4 percent, according to Regalado’s data.
The figures only reflect existing condos as of January 2024.
New construction was excluded from the analysis.
The news is likely to discourage current condo owners hoping to sell, but could be a good opportunity for buyers as prices go down.
In the area’s broader real estate market, sales also fell.
Champlain Towers was in the midst of its 40-year structural review when it collapsed without warning in the early morning hours of June 24, 2021, killing 98 people
In April, sales of condos and townhomes in Miami-Dade fell 21 percent.
The median sales price in the Sunshine State was up just $1,000 year-over-year to $445,000.
Sales of single-family homes dropped 11 percent, although prices rose 4 percent to $680,000, according to a recent report of the Miami Association of Realtors.
Florida’s housing market is suffering after years of surging demand due to the pandemic real estate boom.
The state is flooded with listings as desperate homeowners rush to sell amid soaring costs and vanishing buyers.
According to a report from Cotality, the number of homes for sale across Miami-Dade, Broward, and Palm Beach counties in May had quadrupled since 2022 — hitting the highest level in nearly a decade.
Florida’s fragile housing market can also be blamed on aging infrastructure and environmental threats.
This article was originally published by a www.dailymail.co.uk . Read the Original article here. .