Miami, known for its beaches and wealthy residents, is experiencing a mass exodus as thousands of condo owners are selling their homes due to skyrocketing HOA fees. The city has seen an increase of 57% in home listings, with nearly 2,000 homes worth over $1 million listed on Zillow.
The issue stems from statewide safety regulations requiring condo owners to undergo surveys for repairs to comply with new state laws passed after the Champlain Tower South collapse in Miami-Dade county. The cost of these repairs is estimated to be around $6.5 million per building, which translates to an extra $3,000 per home each month.
Condo owners are fighting back against the increased fees, but experts warn that 80% of condo owners in Florida may not be able to afford the repairs. In response, many owners are slashing prices by up to 40% to sell their properties.
The trend is also affecting major cities in Texas, where buyers who initially sought to buy vacation homes as a get-rich-quick scheme are now struggling with declining sales. Miami has been rated the second-best housing market in the US, but the rising HOA fees may change that, according to some analysts.
As the situation continues to unfold, condo owners and investors are bracing for potential losses on their properties. With prices rising 140.7% over the last decade, it’s clear that Miami’s luxury condo market is facing a crisis.
Source: https://www.dailymail.co.uk/real-estate/article-14526121/wealthy-east-coast-city-condo-owners-sell-hoa-hike.html