The Florida Condo Market in Transition: Insights from a Southeast Florida Real Estate Expert

Written by:

Steve Marcinuk

Date:

26 May 2025

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The shadow of the 2021 Champlain Towers South collapse in Surfside continues to reshape Florida’s condo market, creating both challenges and opportunities for savvy investors. Loodmy Jacques, a 17-year veteran of Southeast Florida real estate with a team on track to handle approximately 100 transactions this year, offers valuable insights into this market in transition.

“Many investors are avoiding the condo market because of its unpredictability with assessments,” explains Jacques, Sales Team Lead at KW Reserve Palm Beach/The Jacques Team. “But if you have the patience for long-term investment, you might secure exceptional deals.”

The Condo Assessment Challenge

Following the tragic Surfside collapse, Florida implemented strict new regulations requiring structural recertifications and adequate reserves for all condominiums. This regulatory shift has created significant financial pressure on condo associations and owners.

“Every condo must undergo recertification to ensure concrete work is sound, fire structures are adequate, and reserves are sufficient,” Jacques explains. “Many condos have neglected these repairs for years. Now they’re imposing additional assessments on current owners to replenish reserves and meet recertification requirements.”

While associations can now obtain loans for necessary repairs, the financial burden ultimately falls on unit owners. This has created a market disruption that’s particularly affecting retirees and those on fixed incomes.

“Many owners lack additional funds to pay HOA fees plus assessments,” Jacques says. “Their only option is to put their condos up for sale.”

A Market Flooded with Sellers

The current assessment situation has triggered a surge in condo listings, driven by several distinct groups. Retirees on fixed incomes are struggling to absorb the increased fees, prompting them to sell. Owners of secondary homes are finding that the economics of holding onto these properties no longer make sense. Meanwhile, investors are reassessing their portfolios, as rising costs have disrupted the financial calculations that once made these condos viable assets.

“Many people listing their condos owned them as secondary homes, where the additional maintenance and HOA fees no longer make financial sense,” Jacques explains. “Some investors who purchased previously find the numbers aren’t viable anymore, so they’re cutting their losses.”

The result? Extended listing times, with many condos sitting on the market for more than 200 days, leading to significant price reductions.

Who’s Buying in This Uncertain Market?

Despite the challenges, Jacques sees a specific buyer profile emerging in this disrupted market.

“The buyers now are people thinking, ‘In the next 5-10 years, I’m going to retire to Florida. I want to have a pied-à-terre,'” Jacques says. “They’re finding condos that were $300,000 two or three years ago now available for $200,000 or even $150,000 – that’s a 50% discount.”

An important consideration for buyers: in many cases, assessments must be paid at closing. “The seller may be done, and the new buyer just gets a condo at a discounted rate with the assessment already paid for,” Jacques notes.

The Insurance Factor

Compounding the condo market challenges are Florida’s skyrocketing insurance costs.

“The insurance market is challenging right now because rates have increased significantly,” Jacques explains. “Many older condos are with Citizens [Insurance], and the costs sometimes have doubled.”

This insurance burden is pushing more owners to exit the market entirely. “Their monthly payment has increased so substantially that they can no longer afford it,” Jacques says.

Opportunity in Port St. Lucie

While the condo market faces challenges, Jacques identifies Port St. Lucie as an area of opportunity for investors looking beyond condos.

“Currently, there’s significant opportunity in Port St. Lucie,” he says. “Many homes there are newer construction, so insurance costs are somewhat lower. As an investor, you can acquire properties at substantial discounts.”

The area offers newer construction with fewer maintenance concerns, and the numbers work well for long-term rentals. “You can acquire a three-bedroom, two-and-a-half bath, two-car garage, 2,000 square foot property for under $400,000,” Jacques notes. “Rent can easily be $2,500.”

Port St. Lucie primarily serves the long-term rental market. “It’s mostly long-term because it’s predominantly single-family houses. Many buyers are families looking to stay for at least a year or two,” Jacques explains.

Strategic Advice for Investors

For investors looking to capitalize on current market conditions, Jacques offers practical advice: be aggressive with offers, but also be persistent.

“Many sellers have implemented price reductions, but although they’re willing to accept lower offers, they’re reluctant to further reduce their listing price,” he explains. “Don’t hesitate to make an aggressive offer. Monitor that property and check back within two or three weeks.”

Timing can be everything in this market. “You may have made an offer that was previously rejected, but as another week or two passes, that same offer might become acceptable,” Jacques advises. “Many sellers change their perspective, especially for cash offers with quick closings.”

A Relationship-Focused Approach

Despite handling high transaction volumes, Jacques and his team maintain a relationship-focused approach that has earned them over 300 five-star reviews.

“We treat every client as family,” Jacques emphasizes. “Often when teams grow larger, personal connection diminishes. We take the opposite approach. We ensure that although we serve numerous clients, everyone feels like our only client.”

This approach extends to their investor services, which include property management. “We serve many investors who have purchased homes, and we help manage their rental properties,” Jacques notes. “We have numerous recurring clients who return whenever they’re considering additional property purchases.”

For investors navigating Florida’s complex and evolving real estate market, local expertise and relationship-based service can make all the difference, especially in a market where timing, negotiation skills, and long-term vision are increasingly critical to success.