Miami’s Condo Safety Rules Are Worsening the Affordability Gap

Written by:

Steve Marcinuk

Date:

18 Dec 2025

Share

Share via Facebook

Share via Linkedin

Share via X

Copy to clipboard

Since the Surfside condo collapse, Miami’s condominium market has divided sharply between older buildings and new construction. According to Nayla Benitez, associate broker with Berkshire Hathaway HomeServices EWM Realty, new mandatory safety regulations have not reassured buyers as intended. Instead, she says, they have deepened skepticism toward older properties and accelerated a local affordability crisis.

Benitez, who has worked in Miami real estate for more than 20 years, describes a changed landscape in which buyers are more hesitant than ever to purchase older condos. “People are a little hesitant now in buying into the older condos, because after the Surfside collapse, these rules and regulations came into place,” Benitez explains. “Every single building needs to have a structural report in place by the end of this year that says what’s wrong with it and what needs to be fixed.”

The Transparency Paradox

The new regulations require every building to complete a structural report, making repair needs and timelines public. This was meant to provide buyers with clear, reliable information about a building’s condition, removing the risk of hidden problems or sudden assessments. But Benitez says that, in practice, this transparency has not restored confidence. “Even though everything is kind of laid out, people are still wary about getting into an older building where maybe they’re going to fix what’s wrong with it right now, but then in five years or seven years from now, other things may come up,” she says.

Benitez points out that unpredictable assessments are now unlikely, since all necessary repairs must be disclosed in advance. “There’s really no hidden agenda where you come in and you’re going to be hit with $100,000 assessment in the next two months,” she says. Yet, despite this clarity, buyers remain reluctant, worried about future problems and the long-term cost of ownership.

This persistent caution has fueled a rapid shift toward new construction, creating a stark price gap. “Brand new comes at a price. Sometimes we’re talking about twice the amount of money, or double the amount of money of what a resale in an older building costs,” Benitez observes.

The Local Affordability Crisis

The widening gap between new and older condos has made homeownership even less attainable for Miami residents. Benitez says most new projects are out of reach for locals. “Most of those brand new projects that are selling, they’re not selling to locals. For the most part, locals can’t afford those numbers,” she says. “A handful of them are selling to investors.”

Maintenance fees in older buildings have also spiked, further limiting options for local buyers. “The fact that those maintenance fees have gone up has made it unaffordable for a lot of people,” Benitez notes. As buildings complete mandated repairs, monthly costs rise, erasing the lower purchase prices that once made older condos appealing.

This leaves local buyers facing a difficult choice: older buildings with lower prices but higher fees and lingering uncertainty, or new construction at prices well above what most residents can afford. The result, Benitez says, is a market where Miamians are largely shut out, and even those who could once afford a condo now find few viable options.

The Investment Return Problem

For investors, the premium on new construction presents another challenge. Benitez says the high cost of entry and elevated maintenance fees make it difficult to achieve attractive returns from renting out units. “If you look at it, am I going to be able to rent this out once it’s ready and get a return on that investment? Not all buildings are going to provide a good return on your investment because you’re buying high,” she explains. “The price per square foot is high, and the maintenance fees that come attached to it are also not cheap.”

As a result, the buyer profile for new luxury condos is shifting away from traditional investors seeking rental income. “We’re finding that a lot of the buyers are people that are getting second homes, third homes, vacation homes, where it’s not necessarily an investment call where they’re going to rent it right away,” Benitez says.

This marks a significant change for Miami, where new condos increasingly serve as lifestyle purchases for wealthy out-of-state buyers rather than as income-producing properties for locals or international investors.

Emerging Market Solutions

Benitez suggests that the market is slowly adapting to these new realities. Sellers of older units, she says, need to accept current market conditions and price their homes competitively. “If you need to sell, price it competitively, because you don’t want it to sit on the market,” she advises.

She also notes that buyers willing to accept some uncertainty may find value in older buildings. “I think you can still find really good deals if you’re looking at resales,” she says, pointing out that discounted prices and transparent repair plans could appeal to buyers who are comfortable with some risk.

Whether this two-tier market becomes permanent depends on how quickly buyers adapt to the new regulatory landscape and whether older buildings can demonstrate that required repairs offer lasting safety and value. For now, Miami’s condo market remains divided, with transparency offering information but not reassurance, and locals are increasingly priced out of both options.