According to a study by Redfin, investor purchases of condos fell to their lowest level in a decade, dropping 3% year-over-year. This decline is notably driven by increasing association fees and insurance costs in Florida, exacerbated by climate-related risks such as hurricanes. While condo investment wanes, single-family home purchases have seen a slight uptick, indicating a shift in investor strategy towards perceived safer assets. Experts suggest that rising interest rates have also played a critical role in this trend, overshadowing even the recent disruptions caused by the pandemic.
Investors' condo purchases have dropped to the lowest level in ten years, primarily due to rising costs and climate concerns affecting Florida properties.
The surge in association fees and insurance costs in Florida, amid climate-driven disasters, has significantly impacted investors' interest in condos.
Eisinger noted that many investors are now favoring single-family homes over condos, viewing them as a safer investment option during current market conditions.
John Cadden pointed out that rising interest rates have had a greater impact on condo purchases than the pandemic itself, causing further decline in the market.
Collection
[
|
...
]