R
onni Drimmer, 72, lives in the Kalmia Condominiums in Clearwater, a 55-plus community where she moved after her mother passed away. The complex has a swimming pool and a clubhouse, but it's not fancy. Maintenance fees are low, which is what drew many seniors to condos like this one. However, skyrocketing insurance rates and new regulations have changed the game.
After the Surfside building collapse in 2021, Florida lawmakers passed strict safety guidelines to prevent another tragedy. While well-intentioned, these reforms have had a devastating financial impact on condo owners, especially seniors living on fixed incomes. Drimmer's monthly maintenance fees could increase by over a third next year, and she'll also face a $500,000 special assessment for a new roof.
Condo and townhome listings are up 65% year-over-year, while sales have dropped 20%, according to Florida Realtors data. The median sales price has decreased more than 3%. In areas like Tampa Bay and Miami, where older condos dominate the landscape, the outlook is bleaker.
Attorney Joe Hernandez says many buildings are "dead man walking." Owners will face higher costs, sometimes to the point of being unaffordable. Seniors stand to lose the most, as they're already struggling to make ends meet on fixed incomes.
Before the Surfside-inspired reforms, only two counties required regular inspections for condos. Now, all condo buildings 30 years and older must be inspected every 10 years to determine if they're structurally sound. A mandatory reserve study dictates how much condo boards must save each year to cover routine maintenance.
Drimmer's board has been responsible, saving money each year for repairs like the roof and elevators. However, they'll still need to set aside funds for everything from electrical to plumbing, leading to higher maintenance fees. Drimmer's monthly bill will increase from $475 to $675, but costs will vary per unit.
The insurance market is also facing unprecedented challenges, with premiums increasing more than 70% on average since 2022. Older condos will be impacted the most. If owners can't afford to pay, they may be forced to sell – if they can find a buyer.
Drimmer's disappointed by the lack of urgency from lawmakers who rushed to regulate condos without considering the consequences. She encouraged Governor Ron DeSantis to call a special session to tackle the crisis, but he didn't commit to a specific timeline. Senate President Kathleen Passidomo rejected calls for a special session over the summer.
For some condo owners, the damage has been done. In the Tampa metro area, monthly fees have increased more than 17% year-over-year. Investors are buying out whole condo communities in South Florida, and Hernandez expects this trend to accelerate as owners become desperate for a way out.
