Florida’s once-thriving condo market is facing significant headwinds, particularly in the Tampa Bay area, where a surge in listings and a slowdown in buyers signal a broader market cooldown.

While overall real estate activity appears to be softening, experts say condos are feeling the brunt of the downturn.

“Florida is known for its condo lifestyle,” Jane McCroary of RE/MAX Metro explained to Bay News 9. “But right now, condo living isn’t as appealing to buyers as it used to be.”

Roughly 2 million Floridians live in condominiums, according to the Florida Department of Business and Professional Regulation. Many are drawn by the coastal views, low-maintenance lifestyle, and resort-like amenities. But condo ownership comes with complexity and cost.

“Managing and financing a condo, and even understanding the responsibilities—it’s a lot,” McCroary said.

She pointed to one of her listings, a two-bedroom unit at the Yacht and Tennis Club of St. Pete Beach. Initially priced at $469,000, it’s now listed at $399,000 due to declining market conditions and increasing competition.

“There’s just not much demand right now,” she said. “A lot of condo purchases are second homes, and it’s easy to postpone that kind of decision when the market is uncertain.”

The market has also lost a key group of buyers: Canadians. “We’re missing our Canadian buyers due to the current exchange rate,” McCroary explained. “The strength of the U.S. dollar compared to the Canadian dollar has made buying here less attractive for them. I’ve lost deals because of it.”

Adding further pressure are the legal and financial changes triggered by the Surfside condominium collapse in 2021. Under new state regulations, condos three stories and higher must undergo structural inspections by engineers. Condo associations are also now legally required to maintain financial reserves to fund future repairs.

“If a roof replacement is going to cost $1.8 million, those funds need to be saved in advance,” McCroary said.

To meet these new requirements—along with spiking insurance premiums—many condo associations have raised their monthly homeowner fees significantly.

“I’ve seen fees rise to $800 a month on condos priced around $250,000 to $300,000,” she said. “For buyers in that price range, it’s a major financial hurdle.”

Despite the challenges, McCroary believes buyers may soon find opportunity. “If you’re a buyer, we may be close to the bottom,” she said. “There are good deals out there if you’re ready to act.”

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