Homeowner Ditches Condo: Rising Fees Push Many to Rent Instead

Jennings, Florida, USA - In recent times, it seems that the tide has turned for many homeowners in Florida, particularly within the realm of condominiums. Take Eli, for instance, a South Florida resident who made a big decision to sell his condo amid rising costs associated with homeownership. After observing his neighbor loading a moving truck and learning of their interest in buying a home, Eli struck an all-cash handshake deal to sell his unit—a move he had been contemplating for months. With the ever-increasing burden of mortgage payments, insurance premiums, and skyrocketing HOA fees, Eli decided it was better to rent.

He moved just two blocks away into a rental apartment boasting more amenities and costing $200 less per month than his previous mortgage payment. It appears Eli is not alone in this assessment. According to South Florida Reporter, Bankrate’s 2025 Rent vs. Buy Study suggests that renting has become more affordable across all 50 of the largest U.S. metros. Eli’s experience, particularly with his HOA fee having risen from $350 to $800 per month over just seven years—a staggering increase of over 128%—illustrates the financial pressures many condo owners are facing.

The Impact of Rising Fees

As condo owners grapple with rising fees, the situation has not improved for many throughout Florida. The Palm Beach Post recently reported that overall condo and townhouse sales saw a decrease of 10.5% in 2024, the lowest decline in 15 years. It is largely due to surging special assessments and monthly fees, driven by new statewide safety legislation following tragedies like the Surfside condo collapse.

Across the state, handyman services land high on the priority list, as older condo buildings face increased inspection regulations that ultimately lead to inflated HOA dues. The effects of this can be seen coast to coast; for example, Tampa condo owners experienced a staggering 17% spike in HOA fees year-over-year in 2024, paralleling increases in Fort Lauderdale and Orlando, where condo owners faced median increases exceeding 16%. Meanwhile, condo sales are shifting inland, where insurance costs are lower, leading to more manageable fees and overall affordability, as highlighted by Redfin’s recent reports.

Changing Dynamics in the Market

At the same time, the broader Florida housing market has been responding to shifts in demand. TD Economics notes that the condo sector has seen a significant drop in both sales and prices as it moves from the peaks of the post-pandemic boom. Sales have plummeted over 25% compared to 2018-19 levels, with yet another 13% decline noted year-on-year in the last quarter, primarily due to elevated mortgage rates near 7% and slowing domestic migration inflows.

As Floridians continue to sort through the implications of skyrocketing fees and changing market dynamics, more condo owners are feeling the financial strain. With the current condo inventory sitting around 80,000 units—up 35% from the previous year—prospective buyers seem hesitant to dive into a market inundated with challenges. All eyes are on the legislative response, as several bills are in the pipeline, potentially easing the pressures on condo associations while aiming to protect owners from burdensome special assessments.

The road ahead may lead to new rental opportunities for many seeking a pocket of affordability amid rising costs. As Eli’s story illustrates, sometimes it’s better to rent than to own, especially when the expenses of homeownership keep climbing higher and higher. Only time will tell how the Florida condominium market stabilizes, but for now, many residents are adapting to the new reality.