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ew safety guidelines for condominiums in Florida are causing significant disruptions in the real estate market, particularly after the Surfside collapse that claimed 98 lives. In response to this tragedy, lawmakers passed legislation aimed at enhancing safety standards for condos in 2022. However, the impact of these regulations is being felt now as nearly a million Florida condominiums face a year-end deadline for inspections and cost studies.

    The number of condos listed for sale surged by 118% year-over-year in October across Northeast Florida, with many owners seeking to avoid costly maintenance fees. At Summerhouse condominiums in St. Augustine Beach, condo association president Malcolm Fabre is preparing for the Dec. 31 deadline to assess the condition of the complex and estimate repair costs.

    The financial concerns stem from SB-4D, a law requiring condos three stories or higher to undergo regular inspections and determine future repair costs by December 2024. Bill Hughes, research director at the University of Florida's Kelley A. Bergstrom Real Estate Center, explained that many condo owners have been paying less than the annual cost of living due to unrecognized asset deterioration.

    Rory Dubin, President of the Northeast Florida Association of Realtors, believes the new regulations have prompted more condo owners to sell, but maintains that the market remains healthy. Despite the increase in listings, condos are still selling, and Dubin expects prices to stabilize by this summer.

    However, Fabre expressed frustration with the state's lack of response to situations like roof damage from recent storms, which could necessitate a second, more invasive inspection. He argues that three-story complexes should not be held to the same standards as high-rises and questions the exclusion of hotels and apartment complexes from the regulations.

    The Surfside collapse served as a wake-up call to hold complexes accountable and reveal the true costs of condo living in Florida. Dubin and Hughes told News4JAX that the condo market is adjusting to the regulations, with sales down and condos sitting on the market longer. However, they expect condo prices to stabilize by this summer and having up-to-date maintenance and reserves could actually strengthen the condo market going forward.