Florida is currently undergoing the most dramatic condo crisis in history.
Four years after the Surfside residential building collapse that killed 98 people, the condo industry has been completely transformed – for the worse.
It’s become a complicated mess of unexpected costs, disastrous inspection reports, sky-high insurance rates for natural disasters and too many units for sale flooding the market.
From skyrocketing costs of HOA fees and insurance rates for condo owners to strict new inspections, legislative overhauls and threats to demolish older buildings, many homeowners have lost hope and are desperate to get out.
David Podein, a real estate attorney at Miami-based Haber Law, has been on the front line of the condo crisis since the collapse.
Older condos are likely to be knocked down for newer, bigger, more upmarket condos that are built to the latest codes to make sure they are not at risk during hurricanes
Pictured: David Podein, Equity Partner and Chair of the Real Estate and Transactional Law Group at Miami-based Haber Law
He is directly involved in helping associations across South Florida navigate the legal, financial, and construction challenges that come with special assessments and capital repairs of condos.
To date, he has secured over $100 million in bank loans for condo associations to fund urgent improvements and avoid displacement of residents, especially older people.
He also advises lenders, boards and contractors on structuring these deals.
Podein says Florida is going through a ‘tale of multiple markets,’ that’s seeing buyers looking for newer, up to code builds rather than condos more than 30 years old.
For these older condos, many filled with retirees and older people, have lost their appeal.
‘Insiders would agree that it takes a nuanced look because we continue to have Incredible sales on the high-end new construction luxury towers that are selling at record prices per square foot,’ he said.
‘We continue to have very strong demand from domestic and international buyers of these luxury product projects.’
Florida is currently undergoing the most dramatic condo crisis in history
Florida is a mix of newer, luxury condos and older builds that are struggling
Hard‑hit condo dwellers on fixed incomes and retirees see no way out
On the other hand, he said, there is a lot of pressure on older condos to shape up or be demolished.
‘There is tremendous pressure on a lot of the older condominium buildings here in Florida – particularly South Florida,’ he said.
And hungry developers are lurking, he warned.
‘These may be older buildings, but they are sitting on prime locations, whether that’s oceanfront or other central business district locations in South Florida, many of them are sitting on very, very valuable land and it’s appealing.’
New, up to code modern buildings would replace them, Podein said, likely changing much of South Florida’s landscape.
‘We’ve seen some those completed and we’re definitely seeing a ramp up in interest from developers and I think that is telling of the two different points of the market,’ he said.
‘We have very strong demand for high and luxury product and you have the financial difficulties that older condominium buildings are going through.’
Many condos in Florida are decades old and were built long before modern safety codes
High rise neighborhoods in Florida will see a boost while older condos fade out
It’s night and day. While the luxury buildings thrive, the older condos are struggling to stay up to code and keep HOAs at a reasonable rate.
Don’t count all the old condos out just yet though, he adds.
‘Some older buildings are doing all the necessary work. They’re going out and doing special assessments and their financing those special adjustments,’ he said.
Podein represents HOA boards in trying to score them condo association loans that help repair any damage sooner rather than later, making the buildings safe and keeping HOA fees down.
‘We have tremendous support from the banking industry and a handful of banks that really just focus on these condominium association loans,’ he said.
‘So the bank provides loans to a condominium association, they do a special assessment, the loans that allow owners to pay the special assessment over a much longer period of time so it becomes much more affordable.’
He said despite their bad reputation, many banks are still interested in loaning to a condominium association because while they are the borrower, the loan obligation is spread out amongst all the condo owners, which often totals hundreds of people.
An aerial view of the condo collapse take a few days after it happened in 2021
Pictured: Champlain towers before it collapsed
Designed by world-renowned Zaha Hadid Architects, The Delmore will feature a futuristic twin-tower design with sculptural sand-colored concrete wrapping around floor-to-ceiling glass
The Surfside tragedy changed everything
In June 2021, the Champlain Towers South building in Surfside partially collapsed as people slept inside.
Investigators at the National Institute of Standards and Technology (NIST) determined that the pool deck slab and its connections to the support columns below failed, leading to the deck’s collapse into the garage below.
In 2022, Florida lawmakers acted swiftly. Immediately after the tragedy, they passed Senate Bill 4-D, which requires inspections for all residential and commercial buildings over three stories and more than 30 years old – or 25 years if they’re located within three miles of the coast.
The inspections must take place every 10 years and are carried out by licensed architects or engineers.
They then determine whether a building’s structure is safe, or if there’s ‘substantial structural deterioration’ that is too risky.
In a bid to ease the pressure on overwhelmed condo owners, Governor Ron DeSantis signed two new laws – HB 913 and HB 393 – on June 23, 2025, which put a 2-year pause on paying into reserves, allowing funds to go toward urgent repairs instead.
Condo boards now also have more power to fire managers who violate state laws and there is more transparency, including online access to documents and financials.
Podein said for homeowners who want to sell or have listed, many want to move further inland where the HOAs tend to be lower and natural disasters less devastating.
As for the developers, getting a hold of the properties will vary on a case by case basis.
‘Under some HOA rules, you need 100 percent of the residents to agree to a buyout, in others, you need 70 percent then the rest are forced to move,’ he explained.
Luxury buildings in Miami are seeing HOAs rise but they are up to code
Looking forward, Podein said there’s going to be a few scenarios happening at once.
‘You’re going to have buildings where you know they might look for different exit options,’ he said.
‘Some will terminating the building and sell to a developer.
‘In extreme cases, a building will file for bankruptcy.’
Overall, it’s looking more and more like the rise of high-end luxury condos is the future.
In fact, the families of the Surfside victims are furious over plans for an ultra-luxury condo tower on the site of the collapsed complex.
New plans for a $15 million-per-unit apartment block has enraged loved ones still getting feeling the tragedy.
The Delmore, an ultra-luxury high rise, is being constructed on Collins Avenue in Miami.
Dubai-based developer Damac Properties is moving ahead with the mammoth project after purchasing the land for $120 million less than one year after the collapse.
Buyers will have a sky pool, Michelin-star dining and over 55,000 square-feet of spa and garden space.
But not a single feature acknowledges the 98 lives lost, with a proposed memorial set for one block away.
The older condo units are doing all they can in the meantime to hang on for dear life.
Podein said to prevent another Surfside, homeowners need the necessary repairs, honesty and transparency from a diligent HOA board.
