Condos and HOAs

Pricey insurance, expensive maintenance, and struggles with financing are all weighing down the condo market, with Florida and Texas feeling it the most.

Rising insurance costs and stricter rules threaten condo affordability, but balanced reforms can preserve access, according to a member of the Community Home Lenders of America.

New legislation takes into account costs to residents while emphasizing accountability and safety from complex owners, Florida governor Ron DeSantis said.

Transparency has improved for mortgages but associations still lack access and insurance is a challenge in efforts to balance access to housing with safety.

Regulatory changes after the Surfside collapse are making more condos nonwarrantable, which presents some opportunities while also complicating mortgage access.

While overall investor purchase activity is returning to pre-pandemic norms, interest in condo units dropped to a 10-year low, as insurance and fees surged.

Rising insurance costs are leading providers and condo associations to consider changes to policies that would make some loans ineligible for GSE sale.