ARE HOA FEES KILLING CONDO SALES?

HOA fees in Florida have increased by 67–68% in the last five years—a staggering statistic, especially in condo-heavy coastal areas like Sarasota and Manatee counties. Where fees used to be around $250–$400 a month, they’re now hitting $800, $1,200, and even $2,000 in some luxury buildings.

This has made many long-time owners—especially retirees on fixed incomes—think twice about staying. Units that once came with modest monthly fees now come with hefty costs, prompting many to list their properties for sale.

The result?

• Condo sales are down 31% since 2022

• Average sale prices have dropped 15% in the past year

And it's not just condos. Single-family communities with HOAs are feeling the pressure too. Though not legally required to hold reserves, many are doing so voluntarily to avoid special assessments in the future.

Special Assessments: A Financial Surprise No One Wants

Imagine buying a condo and getting hit with a surprise $40,000 special assessment. It’s more common than you’d think. While some assessments are as low as $2,000, others have left owners scrambling to cover huge repair bills.

The good news? Some communities now report they are fully funded and don’t anticipate additional fee hikes or special assessments through 2027. But it’s still important to do your homework before buying.

What’s the State Doing About It?

There’s proposed legislation in Florida aimed at tackling the issue head-on:

• The HOA Fee Reform Act: Designed to prevent sudden, significant increases.

• The Preserve Fund Transparency Act: Aims to improve clarity on where HOA dollars are going.

• Potential Subsidies: The state is also considering ways to help HOAs manage rising costs.

While nothing has passed yet, these steps could bring much-needed relief.

What Buyers and Owners Can Do

Knowledge is power—especially when you’re dealing with HOA-governed communities. Here are a few things every homeowner should know:

• Read your HOA documents. Restrictions, covenants, and budgets are your blueprint.

• Challenge large increases. If fees go over 115% of the previous year’s total (excluding insurance and reserve funding), Florida law allows owners to petition for a special meeting.

• Get involved. Join your HOA board or attend meetings. It’s not glamorous, but it gives you a voice in decisions that directly affect your wallet.

A Word of Caution for New Developments

Buying into a brand-new community? Keep in mind that HOA fees are often kept low by builders to attract buyers. But once residents take over the HOA, costs tend to go up. Budget for future increases and be proactive in reviewing those governing documents.

Final Thoughts

Yes, HOA fees are having a major impact on condo sales—and real estate as a whole—in Florida. But with growing awareness, potential legislation, and smarter community planning, there’s hope that we’ll see more stability in the years ahead.

If you have questions about HOA fees, condo ownership, or navigating Florida real estate in today’s market, feel free to reach out. My team and I at Sarasota Neighborhood Experts are here to help you make confident, informed decisions.