Condo Market Sees Historic Decline Amid Crisis Escalation
3 minute readPublished: Wednesday, July 9, 2025 at 1:11 pm
Condo Market Plummets Across the US, Florida and Texas Hit Hardest
The US condo market is experiencing a significant downturn, with prices declining sharply across the nation. A recent report indicates that the average condo sale price in the US fell by 2.2 percent year-over-year in May, reaching $354,100. This marks the second-largest decline recorded since 2012, with the steepest drop occurring in April 2023.
Several areas are facing particularly severe price drops. Florida and Texas are leading the decline, with some markets witnessing price decreases of over 30 percent. Deltona, Florida, saw the most significant drop, exceeding 32 percent. Other cities, including Crestview, Florida, Houston, Texas, Tampa, Florida, and Oakland, California, also experienced substantial price reductions. Sales are also slowing down, with markets like Dallas, Palm Bay, Port St. Lucie, and Orlando seeing condo sales plummet by over 30 percent year-over-year.
Multiple factors are contributing to this downturn. A major issue is an oversupply of condos, with significantly more sellers than buyers. Rising homeowner association (HOA) fees, soaring insurance costs, and special assessments are pushing owners to sell. Simultaneously, potential buyers are deterred by these same costs and financing challenges. The Federal Housing Administration (FHA) loan restrictions on some condo associations are further limiting sales.
The market slowdown is evident in the time it takes to sell a condo. The typical condo took 46 days to go under contract in May, the longest for any May since 2015. This is longer than the time it takes for single-family homes to sell. Consequently, condo listings are accumulating, reaching the highest level in a decade.
While many markets are struggling, some areas are showing resilience. New Brunswick, NJ, saw the largest price increase, rising 14.9 percent year-over-year. Indianapolis experienced the most significant increase in sales, posting a 27.3 percent year-over-year jump.
The situation in Florida is particularly complex. The state's housing market has slowed due to increased supply, exacerbated by rising HOA dues, insurance costs, and new building regulations following the 2021 condo building collapse. Real estate attorney David Podein is actively assisting condo associations in South Florida with legal, financial, and construction challenges. He notes that buyers are increasingly favoring newer builds over older condos, especially those occupied by retirees.
BNN's Perspective: The condo market's decline highlights the impact of rising costs and shifting buyer preferences. While the situation is challenging for many, the market's regional variations suggest that strategic investments and careful planning are crucial for both buyers and sellers. The focus on newer, well-maintained properties indicates a potential shift in the market's dynamics, favoring those who can adapt to evolving demands.
Keywords: condo market, condo prices, housing market, real estate, Florida, Texas, HOA fees, insurance costs, sales decline, oversupply, FHA loans, market downturn, property values, homeownership, building regulations, special assessments, David Podein.