Miami condo owners selling due to soaring HOA fees

Many condo owners in a wealthy Florida city are trying to sell their homes due to rising homeowner association (HOA) fees. Miami, known for its beaches and luxury living, is facing a large number of listings as owners react to increased costs associated with building repairs. Currently, nearly 2,000 homes priced over $1 million are for sale in the Miami area. Overall, about 41,000 homes are listed in the city, which represents a 57% increase compared to last year. Real estate data shows that Miami has become one of the most overvalued housing markets globally, with an average home price of around $525,000. The rising fees are largely due to new safety regulations following the tragic collapse of the Champlain Towers South, which led to significant changes in state law. Condo owners must now conduct inspections and make necessary repairs, driving up costs dramatically. Some homeowners from the Harborage Condos in Palm Beach have protested against potential monthly fee increases of $3,000 per unit. As property values in Miami continue to rise, first-time buyers may find it more challenging to enter the market. Condo prices have soared by over 140% in the last decade, while single-family home prices have increased by 167%. This trend reflects a broader concern about affordability in South Florida's real estate market. In addition to the issues in Miami, condo sales are declining in other major cities, indicating a possible trend affecting housing markets in different states. Investors warn that many condo owners could end up losing money on their properties due to high repair costs, leading them to reduce prices to sell quickly.