South Florida Condo Market Faces Unprecedented Maintenance Fee Increases, Agent Warns

Written by:

Rudi Davis

Date:

29 Oct 2025

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The South Florida condominium market is experiencing a major crisis as maintenance fees soar, reshaping buyer behavior and property values. According to Arkadiy Abdurakhmanov of United Realty Group, the sharp rise in homeowners association (HOA) fees is making condos increasingly difficult to sell.

Market Overview

“When I came to the United States, the most expensive maintenance was $225. It was an affordable price. Now, most associations are $1,000,” said Abdurakhmanov, who has worked in South Florida real estate for over 20 years. He currently has two properties on the market with maintenance fees of $1,387 per month, reflecting the severity of the issue.

The financial strain for condo owners extends beyond HOA fees. Abdurakhmanov outlines the overall costs: “If we account for $1,000 just for the association fee plus $4,000, $5,000, or $6,000 for your property tax, plus $4,000 for your insurance, you already lose $20,000, $25,000 just to have this property.”

Root Causes of the Crisis

Abdurakhmanov traces the current crisis back to poor financial management during the Great Recession. With experience in property management accounting, he saw decisions that have led to today’s problems.

“I also worked in the accounting department, on property management. And I saw in 2008, 2012, 2013, they decided not to put money in reserve. And now we see this is a big, big challenge, because if you don’t have money in reserve, you cannot fix the building. But everything older we have to fix,” he said.

After the Surfside condominium collapse, regulations have become stricter, requiring mandatory structural assessments and repairs that had often been deferred. Associations are now forced to implement large special assessments or significantly increase monthly fees to fund necessary repairs.

Governance Problems

Abdurakhmanov identifies poor board governance as a significant factor worsening the crisis. “The problem, like I told HOA membership association, sometimes they choose board members who either do not recognize how work. They just want to work manage, but it is like you going to hospital and somebody barber come to fix your body,” he said, highlighting the mismatch between board member qualifications and the complexity of managing multimillion-dollar properties.

This lack of experience often results in decisions that further burden residents with assessments and fee increases without delivering improvements or better services.

Market Impact

The maintenance fee crisis is changing buyer preferences and market dynamics. Abdurakhmanov observes that buyers prefer new construction to avoid high maintenance fees and special assessments, but are often drawn to older buildings because “the problem new construction too small. The problem why people buy an old building? Because it is much, much bigger.”

Buyers are left deciding between smaller, newer units with lower fees or larger, older units with much higher monthly costs. As a result, condos are taking longer to sell, as buyers confront ownership costs that can exceed $2,000 per month before mortgage payments.

Future Implications

Abdurakhmanov believes government action may be needed to address the situation. “I think government supposed to prepare something,” he said, suggesting regulatory reform around HOA governance and reserve fund management could help stabilize the market.

The rise in maintenance fees is not just a pricing issue—it is changing who can afford to own a home in South Florida’s condo market. For many, the dream of Florida living is becoming unattainable, not because of purchase prices alone, but due to the ongoing costs of maintaining aging buildings in a hurricane-prone area.

As these challenges persist, serious questions remain about the long-term viability and affordability of South Florida’s condo market for the average buyer.