Condo living in Sarasota and Manatee counties has long been a favorite for people seeking a low-maintenance lifestyle under the Florida sun. But lately, many condo owners and prospective buyers have noticed some big changes—from rising association fees to shifts in property values.
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Much of this stems from new statewide regulations aimed at keeping buildings safe and financially stable. While these changes can feel challenging in the short term, they’re setting up condo communities for a stronger, more secure future.
This guide breaks down what’s changing, why it matters, and how you can navigate the new landscape with confidence—whether you own a condo, are thinking of buying one, or serve on a board.
What’s Driving the Changes?
Several factors are coming together to reshape the local condo market. Understanding them is the first step to staying ahead.
1. New Safety and Financial Rules (SB-4D & SB-154)
After the tragic Champlain Towers South collapse in 2021, Florida passed laws to make condo buildings safer.
Two key pieces of legislation—Senate Bill 4-D and Senate Bill 154—have introduced major new requirements:
Milestone Structural Inspections
Buildings three stories or taller must now have detailed inspections by licensed engineers when they turn 30 years old (25 if near the coast), and then every 10 years after. This ensures potential structural issues are identified and addressed early.
Fully Funded Reserves
Associations can no longer skip setting aside money for essential repairs. Starting December 31, 2024, condos must fund their reserve accounts annually to cover future projects like roof replacements or concrete repairs.
The result? Stronger buildings, better-managed finances, and more predictable long-term costs. But for some communities, catching up on underfunded reserves has meant noticeable increases in monthly HOA fees.
2. Rising Insurance Costs
Insurance premiums are also climbing across Florida, driven by storm-related claims and other market pressures. Higher master insurance policy costs are passed on to condo owners, adding to the monthly financial responsibilities.
3. Proactive Maintenance
Many of our region’s condos were built decades ago. Like any home, they need ongoing care. The new inspection requirements ensure maintenance happens on a regular schedule, which protects property values—even if it requires careful financial planning upfront.
Current Market Trends
These changes have caused some noticeable shifts in Sarasota and Manatee County’s condo market:
More Inventory: Rising fees have prompted some owners to sell, doubling the number of condos for sale in May 2024 compared to the previous year.
Price Adjustments: With more options available, median sale prices have dropped 12–14% in mid-2024, reflecting higher ownership costs and the market valuing financially stable buildings.
Longer Marketing Times: Condos are now staying on the market for about two months, giving buyers and sellers more time to make thoughtful decisions.
Practical Advice for the Community
For Sellers: Position Your Condo Smartly
- Be Transparent
Have your condo’s budget, reserve study, inspection reports, and recent board meeting minutes ready. Buyers appreciate transparency. - Price Strategically
Work with your agent to price your property according to current market conditions. - Highlight Strengths
Fully funded reserves, recent renovations, or excellent financial health are now major selling points. - Address Assessments Clearly
If a special assessment exists, be upfront about it—offering to pay it off at closing can help seal the deal.
For Buyers: Do Your Homework
Buying in this market is a great opportunity if you’re thorough:
- Check Financial Health
Review budgets and reserve studies to make sure the building is well-prepared for future repairs. - Read Board Minutes
The past six months can reveal upcoming projects and community dynamics. - Inspect the Building
Request the Milestone Structural Inspection report to assess structural health. - Understand Insurance
Ask about the master policy—adequate coverage is essential. - Calculate Total Costs
Don’t just consider your mortgage. Include property taxes, condo insurance, HOA fees, and any special assessments.
For Board Members: Communicate and Plan
- Keep Residents Informed
Share budgets, insurance quotes, and engineering reports regularly. - Use Expert Guidance
Work with engineers, reserve specialists, and managers to make smart decisions. - Plan Ahead
A clear long-term financial plan helps owners prepare for future expenses.
Finding Opportunity in the New Market
Yes, the condo market is adjusting. But this period of change is creating transparency and resilience. Well-maintained, financially healthy buildings are more desirable than ever—they offer security, predictability, and peace of mind.
For buyers willing to do their research, now is a strong opportunity to invest in a community built to last. And for current owners and board members, these rules help protect the value of your home and your neighbors’ investments.
Ultimately, Florida’s new condo landscape is about stronger foundations—literally and financially. With the right approach, our local communities can continue to enjoy the benefits of condo living while building toward a safer, more secure future.
