A Florida law enacted after the Surfside condo tower collapse is causing turmoil in the condominium market.
The law, which requires buildings to meet certain structural safety standards, is forcing condo associations to assess hefty fees to make repairs on older properties. In some cases, the cost per unit runs into six figures, according to the Wall Street Journal.
As a result, some owners who cannot afford the assessments are putting their homes up for sale. Prices have plummeted, with some owners having to settle for over 40% less than what they paid for their units.
The inventory of condo units for sale in South Florida has more than doubled since the first quarter of last year. A jump in Florida home insurance costs is another factor driving some to sell, but most of the impact seems to be from the new structural standards law.
Units built less than 30 years ago are selling for about 38% more today than in 2020, but units 30 years or older now fetch almost 12% less than they did that year. The new law requires buildings to pass structural inspections no later than 30 years after they are built.
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