Report: Tampa leads nation in HOA fee increases

Tampa has scored the No. 1 ranking in a housing category city and regional leaders aren’t likely to brag about: the biggest increase nationwide in homeowners association fees. 

In Tampa, the increase is 17.2% in the three months ending July 31. That’s more than double the rate in Jacksonville and triple the increase in Miami. The data comes from a new report from real estate tech firm Redfin, which analyzed 43 high-population metro areas across the country. HOA fees, of course, which go toward building repairs, operation costs, staff and amenities in a community, will often increase over time as property prices increase. 

But the situation in Florida, the report found, is different. 

“Condo prices are actually falling in many parts of the Sunshine State, in part because HOA fees have surged so much,” the report states.

Tampa, for one, has one of the lowest median condo sale prices among the metros Redfin analyzed, at $237,750, but some of the highest median monthly HOA dues, at $614. 

“Condos are really taking a hit. Prices are hurting,” Tampa Redfin sales manager Eric Auciello says in a statement. “Condo fees are skyrocketing due to increased insurance costs. These additional fees have adversely affected the value of many units.”

The report offers three reasons for the increase in HOA fees, which is also happening in other major Florida markets. 

One reason dates back to the Surfside condo collapse of June 24, 2021, that killed nearly 100 people. A 2022 bill in response to that requires structural inspections for condos and additional money to be set aside for repairs. “Many homeowners associations are hiking fees in order to comply with the new safety regulations, and also doling out hefty special assessments,” the report states. 

Another reason for HOA hikes? Insurance. “Premiums have soared as natural disasters have intensified and insurers have stopped doing business in the state,” the report states. “Some homeowners associations are raising dues to help cover the increase in insurance costs. 

One more reason is inflation, given the costs of maintenance and repairs is also on the rise. 

The condo crisis isn’t just impacting Florida. Redfin agents from Seattle to Denver have reported jumps in HOA costs — with saying condo owners are having trouble selling as fees continue to rise.

“Many buildings — even those without amenities — now have HOA dues north of $1,000 a month,” said Rafael Corrales, a Miami Redfin Premier agent. “And with special assessments getting tacked on, a lot of condo owners who are retired and/or on a fixed income are being forced to sell and relocate because they can’t keep up with the payments.”