On June 24, 2021, the Champlain Towers South condominium in Surfside crumbled in the early hours of the morning, killing 98 people in seconds.
State legislators sprang into action following the tragedy, unanimously passing a series of reforms aimed at tightening safety measures for older condominiums across the state.
Now, condo associations must routinely inspect these buildings and set aside more money to make sure buildings are being properly maintained. Those new costs, along with rising insurance prices, have made condo living a lot more expensive.
The market has responded accordingly.
More condo owners are selling their units as they try to avoid pending special assessments and increased maintenance fees in their buildings. Demand has slowed. Statewide condo and townhome sales have dropped about 48% since May 2021, the month preceding the Surfside collapse.
Still, experts say we’ve managed to avoid the worst case scenario. Foreclosures and short sales remain relatively low.
“By and large a lot of these homeowners, especially ones who have owned for a long time, are still sitting on significant equity,” said Hannah Jones, senior economist at Realtor.com.
Read my story for a closer look at how the rules have changed in the years since Surfside and how condo owners are grappling with the effects.
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