Short - Miami Banker Warns Insurance Rates, Not Reserves, Pose Biggest Risk To Florida Condo Associations In 2025

This is a clip from a recent episode of the "Special Report: Florida's 2025 Condo Association Financial Cliff" podcast series from the Miami Real Estate Investing Podcast.

Peter Zalewski of the Miami Condo Market Investing Club™ discusses the implications of the upcoming 2025 law requiring Florida condo associations to set aside reserves to prevent disasters like the Surfside condo collapse.

This is a clip of Richard Alfonso, the Director of Specialty Products at U.S. Century Bank in Miami. Alfonso said Florida condo associations are addressing the reserve requirements mandated by the Florida Legislature but are facing challenges with skyrocketing insurance rates.

A lot has changed since June 24, 2021 when the Champlain Towers South collapsed on the barrier island in Miami-Dade County. Nearly 100 people died and a $1 billion settlement was reached with the families of the victims.

Some industry watchers have compared it to an inflection point on par with the Category 5 Hurricane Andrew that devastated South Miami-Dade County in August 1992 and led to more stringent building code requirements in South Florida.

Since the 2021 collapse, older units are said to be tougher to sell, insurance prices are spiking year-over-year and association maintenance fees and special assessments are squeezing owners to the brink.

In response to the Surfside disaster, Florida is requiring associations that govern older condo projects to study the structural integrity of all buildings on their properties and begin funding the necessary repairs by January 2025, ending the practice of deferring work and costs.

People are dubbing this moment as the 2025 Condo Association Financial Cliff as it expected to result in significantly higher costs for unit owners.

Industry watchers are at odds as to the direction of the South Florida housing market through the end of 2024 and into next year.

Bullish investors are predicting housing demand will reignite once the Federal Reserve begins to cut interest rates.

Bearish investors contend that condo prices are too high from the run up in work-from-home buyers during the pandemic years and likely to collapse in the months ahead if the economy slows and these transplants leave South Florida.

To stay abreast of the volatile South Florida condo market, we would encourage you to join the newly launched Miami Condo Market Investing Club™ at PeterZalewski.substack.com

The objective of the Club is to create a community that shares realtime, actionable information on the latest real estate trends, opportunities and service providers in South Florida,

The Club is ideally suited for Do-It-Yourself (DIY) condo buyers who can rely on our latest statistics, expert opinions and access to consulting services.

Additionally, we encourage you to listen or view our podcast wherever you get podcasts. The podcast is available on Apple, Spotify and/or YouTube.

As a reminder, we are always available for consulting, expert witness work and buyside brokerage services just as we have been since 2006.

For South Florida condo resale information, please call 305.865.5859 or visit CondoVulturesRealty.com