Living in a Florida condo might sound like a dream, but for many retirees, that dream becomes a nightmare. Homeowner’s association (HOA) fees across the state are skyrocketing and people with fixed incomes feel pressure to relocate.
A recent Redfin analysis found that HOA fees in several Florida metro areas have increased dramatically, surpassing the rate of hikes in other U.S. cities. This has left condo owners with tough choices: sell at a loss or stay in a home where monthly costs keep climbing.Don't Miss:
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"Many buildings – even those without amenities – now have HOA dues north of $1,000 a month," said Rafael Corrales, a Redfin Premier agent in Miami. "Special assessments are being tacked on and a lot of condo owners, especially retirees, are being forced to sell because they just can't keep up."
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According to Redfin's data, HOA fees rose 6% on average nationwide during the three months ending July 31. But Florida's numbers are much higher. Tampa saw the biggest spike, with dues up 17.2% year over year. Orlando followed close behind, with fees climbing 16.7%. Fort Lauderdale wasn't far off either, experiencing a 16.2% increase.
Other Florida cities, like West Palm Beach and Jacksonville, also saw significant rises, with 12.8% and 7.6% respectively. On the surface, Miami seems to have escaped this trend with a smaller jump of 5.7%. However, that's because Miami's dues were already among the highest in the country, averaging $835 a month.
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One of the main reasons why the costs are rising fast is the passage of Senate Bill 4-D, introduced after the tragic collapse of the Surfside Condo in 2021, which killed over 100 people. The new law requires stricter inspections and mandates higher reserve funds for repairs. To comply, HOAs are raising dues significantly.
Insurance is another major factor. As cited by Redfin survey, three-quarters of Florida homeowners reported sharp increases in property insurance premiums. These, combined with rising inflation, have increased the cost of living for condo owners across the state.
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As HOA fees climb, property values are taking a hit. Condo sale prices in Jacksonville fell 6.6% year-over-year, the sharpest drop of any metro area. Tampa wasn't far behind, with a 4.9% decline, while Fort Lauderdale saw prices fall by 4.2%. Even Miami and Orlando, usually more resilient markets, saw declines of 2.2% and 0.5%, respectively.
Property owners now face a tough dilemma: either hold on as rising dues become unaffordable or sell their condo at a reduced value. Mortgage rates remain high and other Florida condos are hit with similar fee hikes, making affordable housing even harder to find.
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This article Exorbitant HOA Fees Are Driving Florida Retirees To Relocate – Here's Why Costs Are Spiraling So High In The Sunshine State originally appeared on Benzinga.com
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