Miami condo owners rush to sell before 2025 deadline

Learn how Miami’s condo market is crashing as owners panic-sell to avoid looming bill

In a recent Newsweek article by Giulia Carbonaro, “Miami’s housing market is flooded with aging condos which owners are desperate to sell before strict new regulations come into force later this year,” the challenges facing Miami’s real estate market are brought to light. According to a report from ISG World, nearly 90 percent of active condo listings in Miami are over 30 years old. This surge in listings is driven by owners, particularly retirees, who are eager to offload their properties before new regulations, set to take effect in 2025, impose stringent inspection requirements on aging buildings.

As buyers become increasingly wary of properties that might require expensive repairs, the demand for newer but scarce units has skyrocketed. This situation has led to a significant imbalance in the market, with older properties depreciating rapidly—by as much as 19 percent since 2023—while newer condos have seen their values rise. The situation has become increasingly dire with deadlines approaching. 

Related resource: 
Miami Real Estate Podcast: Navigating Senate Bill 4D and Property Transformations

The SB 4-D Bill, introduced following the tragic Surfside condo collapse, mandates inspections for Florida condos over 30 years old and three stories tall. The bill requires that any necessary repairs be initiated within a year, with severe penalties for non-compliance. This impending deadline has sparked a “mass exodus” from older condos as owners rush to sell before the inspections reveal potentially costly structural issues.

This article also highlights the broader implications of this situation, suggesting that Florida’s handling of aging infrastructure could set a precedent for other coastal markets across the U.S. The shift in buyer preferences and the resulting market dynamics will likely have lasting effects, not just in Miami but nationwide, as the real estate landscape evolves in response to these new regulatory pressures.

Read the Newsweek article here

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