Miami’s Condo Market in the Midst of a Collapse

Despite Miami’s continued status as one of the most robust real estate markets in the United States, the condo market in the city has been in freefall for the past couple years, and things have continued to grow worse. While prices of single family homes continue their strong momentum, the market is flooded with available condos, and many of them simply aren’t selling. Considering that Florida is home to 20 percent of the condos in the US—and Miami is one of the hottest areas to settle in Florida—this condo crisis is concerning for a lot of people. Unfortunately, due to a number of compounding factors, it may continue to become worse.

A haven for retirees

Florida has long been one of the most popular destinations for relocating retirees, and understandably so. Offering mild weather, coastal access, a great social scene and nightlife, cultural diversity, and an ever-growing business and professional scene, it’s a favorite of those who are nearing the end of their careers and beginning to plan for their golden years. 

With an understanding the state’s status as a haven for retirees, developers have spent the past few decades putting up thousands of condos. These small, affordable, community-centered developments are a great option for people who are no longer working, need affordable, comfortable housing that doesn’t involve a lot of maintenance and overhead, and who are looking for a built-in social life.

Booming market

A few years ago, the condo market in Miami was booming. Investors were putting up new developments as fast as they could, and often filling them before they were even completed. But the collapse of the Champlain Towers condominiums in Surfside in 2021 changed everything. Not only did the disaster take the lives of 98 people, but it also brought years of neglect and deferred maintenance and upgrades to the attention of city and state planners. In order to prevent more tragedies like the Surfside condo collapse, new laws and regulations were put into place that required regular, ongoing repairs and upgrades in condos of a certain age, as well as structural integrity inspections by January 1, 2025.

In order to finance this mandatory maintenance, HOAs began to increase annual fees and levy special assessments that often reached into the tens of thousands of dollars per resident. Not only did this cause many existing condo owners to rethink their living situation, it also meant added costs for anyone considering purchasing a condo. As a result, demand and prices for condos began to fall.

At the same time, a number of new condominium developments were already in the works. Over the past few years, these units have become available, adding to the glut of condos that are now on the market. While these new units are not subject to unexpected maintenance and upgrades, they are generally much more expensive than older condos that are available for sale. The result is a condo market that is no longer financially practical for low and moderate income families, but that has also devalued the higher-end market due to the simple fact that there are more condos available than there are buyers. In recent months, the number of condos available in the Miami area has ballooned from 25,000 (already much higher than normal) to 28,000. This same situation holds true throughout Florida, where there were more than 60,000 available condo listings near the end of 2024.

Sales falling off

April 2025 saw another in a long line of double-digit percentage decreases in the pace of condo sales. As Miami Realtors Chief Economist Gay Cororaton explains, “We’re seeing a highly polarized market, with sales moving either in the lower price-tier markets that are affordable for most buyers or in the high-end markets where cash buyers make up about half or more of the sales.” The middle range—where a large number of the available listings lie—has stagnated, with sales falling off considerably. Not only does this leave thousands of potential sellers stuck with condos that they can’t get rid of (and special assessments that they can’t afford), it also puts added pressure on the single-family home market, which was already tight (a fact that had been partially offset, until recently, by the condo market).

Further complicating the situation is the fact that those potential homebuyers who are considering condos are finding it more difficult to acquire low mortgage rate financing. While this holds true for the entire national housing market due to stubbornly high interest rates, the problem is exacerbated for the entire condo market in Miami and the rest of Florida due to fallout from the Surfside collapse and the resulting market challenges.

How long the pain for condo owners will continue and whether the market will eventually recover remains to be seen. At the moment, however, there is a stark contrast between the single-family home market, which continues to grow, and the condo market, which remains in free fall.