ORMOND BEACH, Fla. – The allure of Florida’s coastline is undeniable.
For many, owning a beachside condo represents the American dream — mornings filled with the sounds of the ocean, picturesque views of palm trees and pristine sands, and the serene beauty of moonlit waves.
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However, for a growing number of Floridians, this dream is turning into a financial nightmare.
Two years ago, Aairon Blake was captivated by the stunning view from his two-bedroom condo in Ocean Watch in Ormond Beach.
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“I love it. At night when you get the view of the moon, it’s awesome. But now it’s tainted. It hurts sometimes,” he shared.
Blake, like many others, didn’t foresee the financial storm brewing on the horizon.
Since his purchase, Blake’s Homeowners Association (HOA) dues have surged by 190%, now exceeding $900 per month. Additionally, he has been hit with special assessments totaling nearly $20,000, and his insurance costs have climbed by more than $1,000 annually.
Tony Galarza, a seasoned real estate agent with 18 years of experience in Florida, confirms that Blake’s situation is not unique.
“Florida has had a condo crisis for a while now,” he asserts.
Galarza says the statistics support his claim: median condo prices have plummeted by 17% over the past year, while active condo listings in Central and South Florida have surged from 8,000 to 20,000 in central and south Florida.
The impact of structural concerns
The tragic collapse of the Champlain Towers South condo complex in Surfside three years ago, which claimed 98 lives, has also played a significant role in this crisis. In response, lawmakers mandated stringent structural inspections and increased financial reserves for repairs, escalating costs for condo owners.
“So, all that cost is now on the condo owners. We have to eat that. It’s huge. I don’t think they thought through how hard it would hit us. It’s tough,” said Blake.
Blake’s condo, purchased for $302,000 in 2022, is now for sale at $199,000.
“Really, it’s gonna be a short sale situation. Best case, take the hit, and there’s really no other option at this point. I can’t continue personally to handle the cost,” he admitted.
For those considering snapping up a bargain, Galarza says you need to review the HOA minutes to see what’s happening in the meetings, verify the milestone inspections have been done, and be prepared for future costs like assessments and repairs.
With more than 900,000 condos in Florida older than 30 years, the Dec. 31 deadline for mandatory inspections looms large. Failure to comply will result in fines, and with lawmakers on break until next year, hopes for an extension appear slim.
As Floridians navigate this turbulent market, the once-idyllic dream of beachside living is proving to be more complex and costly than ever imagined.
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