C
ondo sales have plummeted across South Florida, with single-family homes emerging as the preferred choice for buyers. According to third-quarter reports, demand for condos has weakened significantly, driven by new state laws that increase costs for condo living. This trend is expected to continue as condo buildings are forced to comply with these regulations.

    In Miami Beach and other barrier islands, condo sales declined 26% year-over-year to 583 units, the lowest number in five quarters. Listings increased by 35%, indicating more owners are trying to sell their condos at a time when closings have fallen by over a quarter. On the mainland in Miami-Dade, condo sales dropped 20%, marking the slowest third quarter since 2017.

    Jonathan Miller, an appraiser and housing market analyst, notes that inventory levels remain below pre-pandemic numbers, while pricing continues to rise as buyers opt for newer or better-maintained condos. In Palm Beach, where few condos exist and the median price is $1.35 million, sales actually increased.

    The condo market reflects broader socioeconomic trends, including the disappearance of the middle class. Wealthier buyers are gravitating towards higher-end properties, leaving lower-income buyers with fewer affordable options. Condo living can come with significant costs, including insurance premiums, special assessments, and increased monthly dues.

    Ana Bozovic, a broker, attributes the disparity to "wealth and talent migration," where segments of the market catering to high-end buyers are outperforming others. She predicts this trend will accelerate over the next five years, exacerbating wealth polarization.