Condo Engineering Studies Drive 'Unprecedented' HOA Fee Increases Across Florida Markets

Written by:

Rudi Davis

Date:

03 Dec 2025

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The ripple effects from Miami’s engineering crisis continue to reshape Florida’s real estate landscape, with condominiums now facing what one Naples broker describes as “unprecedented” cost increases that are fundamentally altering buyer behavior across the state.

According to Kathryn Zangrilli, broker-owner of Broker Brothers LLC, the regulatory measures introduced after Miami’s structural failures have reshaped the landscape for condo buyers and sellers. She notes that condominiums are facing the greatest challenges, largely due to newly mandated engineering studies for buildings over three stories and for properties situated in proximity to the water.

The New Regulatory Reality

The mandatory engineering requirements, triggered by the Surfside collapse and subsequent regulatory overhaul, have created a cascade of financial pressures that extend far beyond Miami-Dade County. Zangrilli notes that properties in Naples and other Florida markets are now subject to comprehensive structural assessments that were previously optional or non-existent.

Zangrilli notes that many owners are struggling to cover the growing expenses associated with the required engineering evaluations. With 25 years of experience across the Jacksonville and Naples markets, she adds that the financial strain extends well beyond the upfront testing costs.

She also points out that HOA fees are rising at a pace not seen before, a trend that is discouraging many prospective buyers from moving forward.

Market Segmentation Emerges

The engineering requirements have introduced a noticeable performance gap among Florida’s higher-end property segments. Zangrilli notes that single-family homes continue to show the strongest value retention, with attached villas also demonstrating comparatively stable performance.

This segmentation appears to reflect buyer risk assessment rather than fundamental market conditions. Zangrilli argues that buyers have become increasingly cautious about condo investments due to uncertainty around future assessment costs and regulatory compliance.

“Buyers are very concerned about all of the new engineering that’s needed, and a lot of the fees have gone up,” she says. “That’s problematic for the buyers of condominiums.”

The data supports this trend. While Zangrilli’s firm closed more than 50 deals in 2024 despite overall market volume declining 20%, she notes that condo transactions required significantly more buyer education and price adjustment compared to single-family properties.

Buyer Psychology Shifts

The engineering requirements have created what Zangrilli describes as a transparency problem that’s affecting buyer confidence. Unlike previous market cycles where HOA fee increases were gradual and predictable, the current regulatory environment has introduced sudden, substantial cost increases that buyers struggle to quantify.

Zangrilli cautions that a larger supply of listings doesn’t necessarily translate into the kind of quality buyers expect at a price that reflects upcoming assessment risks. She points to the difficulty of identifying condo units that are both appropriately valued and aligned with what clients are seeking.

The broker notes that even qualified buyers are hesitating when they discover the scope of potential future costs. This hesitation extends beyond the immediate purchase decision to long-term investment considerations.

Industry Adaptation Required

Zangrilli suggests that the condo market’s challenges require a fundamental shift in how properties are marketed and priced. “It’s great to have inventory, but if it’s not priced correctly, you know, you’re going to have a fight on your hands,” she says.

The broker’s approach involves extensive upfront education about regulatory requirements and potential future costs, but she acknowledges that many sellers remain resistant to pricing adjustments that reflect the new reality.

Looking ahead, Zangrilli believes the market will eventually stabilize as both buyers and sellers adjust to the new regulatory environment. However, she suggests that condo values may need to find a new equilibrium that accounts for ongoing compliance costs and buyer risk perception.

Her firm, Broker Brothers LLC, has adapted by focusing on properties where regulatory risks can be clearly quantified and communicated to buyers, allowing for more transparent pricing and smoother transactions in an increasingly complex market environment.