What’s the future for Miami condos? Experts to talk on crisis, solutions at Herald panel
There’s a condo crisis in South Florida, with owners coming face to face with rising association fees, special assessments and dwindling reserves. The perfect storm is all but crippling Miami’s once vibrant condo market, with some owners struggling to pay the new costs or even to escape them by selling.
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On Sept. 18, the Miami Herald and el Nuevo Herald are hosting a panel on the condo crisis, “Priced Out Of Paradise,” moderated by WLRN’s Senior Economics Editor and Special Correspondent Tom Hudson. Real estate analysts, academics and politicians will join Hudson on the Herald panel at the United Way to talk about the challenges and offer possible solutions.
The exclusive Herald event is sold out.
“South Florida condo owners today face unprecedented challenges, from skyrocketing costs and special assessments to the looming requirement for reserves,” said Alex Mena, executive editor of the Miami Herald and el Nuevo Herald. “These financial pressures are creating a perfect storm, leaving many struggling to keep up.
“Our goal,” Mena said “is to provide residents with the insights and strategies they need to navigate these turbulent times and to spark a broader conversation about the future of home ownership in our community.”
Four real estate experts — including political leaders and academics — will join the discussion:
▪ Miami-Dade County Mayor Daniella Levine Cava
▪ State Rep. Vicki Lopez, R-Miami
▪ Ned Murray, associate director of the Florida International University Jorge M. Perez Metropolitan Center
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▪ Peter Zalewski, founder of real estate consulting firm Condo Vultures
A new state law has forced condo owners, some on a fixed income, to dig further into their wallets and tighten other spending. In 2022, state lawmakers banned associations from waiving reserve contributions — a form of savings for routine maintenance projects — and waiving structural repairs. Now, condo associations with buildings three stories or higher owe the state a reserve study by January 2025, essentially providing a savings plan for repairs needed every 15 to 25 years.
The changes came after the collapse of Champlain Towers South in Surfside, which killed 98 people. In addition reserves, communities have to resolve any immediate structural issues. All of this is costing owners a lot of money.
The fallout?
Miami-Dade condo owners saw a 60% increase in the median monthly association fee over the past five years, to $900 from April through June up from $567 during the same period in 2019.
High-rise living is only expected to get pricier come 2025 when every condo dweller has to contribute to their community’s reserve. Those itching to sell face unfavorable conditions, with a dip in sales activity and rising inventory, leaving many owners in a tough financial situation.
“At this critical juncture,” Mena said, “the Miami Herald and el Nuevo Herald are convening a panel of experts and policymakers to shed light on these complex issues and explore viable solutions.”
This story was originally published August 28, 2024 at 10:39 AM.
