By Peter S. Sachs, Sachs Sax Caplan
In the wake of hurricanes Helene and Milton, Florida’s housing crisis has continued to intensify — and may have reached a boiling point. These devastating natural disasters are increasing property insurance costs and upkeep on older buildings. As our state grapples with a surge in property damage and a fragile condo market, both the immediate and long-term impacts of these storms underscore the need for decisive action.
Florida has long been a magnet for retirees and transplants seeking affordable living, particularly in condominium communities. Yet, in recent years, the landscape has shifted dramatically. The state’s older condo buildings, many constructed during Florida’s real estate booms decades ago, now face structural issues exacerbated by hurricanes and new safety regulations. This has placed an enormous financial burden on condo owners, many of whom are elderly and on fixed incomes, as they struggle to keep up with rising assessments and costly repairs.
In particular, the Surfside condo collapse in 2021 led to stricter inspection and safety standards for older buildings. These requirements, while necessary, have translated into steep assessments for repairs and current code compliance. In some cases, these costs have reached tens of thousands of dollars per unit, forcing many long-term residents to sell their homes or move. This is especially true in communities like Century Village, where older residents are being priced out of their homes due to new financial pressures.
The issue, however, extends beyond individual condo owners. The resale market for these older buildings has stalled, as potential buyers shy away from properties that could require extensive — and expensive — repairs. Instead, many buyers are opting for newer constructions to avoid future assessments, further diminishing demand for older units. This decline in the resale market means a flood of unsellable properties, creating an affordability crisis for long-standing communities.
The recent hurricanes have only heightened these existing problems. While many initial reports claimed that insurance premiums would not be impacted by the storms, history and common sense suggest otherwise. The billions of dollars in damages from Helene and Milton will undoubtedly lead to increased insurance costs, placing additional strain on condo owners already grappling with steep assessments and repair costs. As insurance companies absorb these losses, they are likely to pass the financial burden onto homeowners in the form of higher premiums.
Florida’s insurance landscape was already teetering on the brink before these hurricanes. With several major insurance companies leaving the state or declaring insolvency, homeowners have been forced to turn to last-resort policies that offer less coverage at higher rates. For condo associations, which are required by law to carry adequate property insurance based on the replacement cost of the property, these rising premiums paid by condo owners are unsustainable.
Coastal buildings are more vulnerable still. Particularly susceptible to storm damage, they are now viewed as financial liabilities. In many cases, the land these buildings sit on is worth more than the structures themselves, making them prime targets for developers who see an opportunity to buy out owners and replace aging condos with luxury high-rise developments. This trend is already underway in areas like Fort Lauderdale and Jupiter, where older, lower-density buildings are being demolished to make way for high-end developments that cater to wealthier buyers, effectively erasing affordable housing options for middle- and lower-income residents.
Florida’s housing crisis, exacerbated by the hurricanes, demands legislative intervention. As the state faces ongoing challenges from climate events, population growth and aging infrastructure, the need for comprehensive legislative action has never been more urgent. One potential solution is to hold a special legislative session to address these issues and create a task force focused on finding long-term solutions to Florida’s housing crisis. By passing targeted relief measures, Florida’s lawmakers can help protect vulnerable residents and ensure that the state remains a viable place to live for all income levels.
Without swift action, the combination of rising insurance costs, unsustainable assessments and the impact of hurricanes could lead to a mass exodus of residents and the continued erosion of affordable housing in the state.
Peter S. Sachs is a founding partner of Sachs Sax Caplan P.L. in Boca Raton. He is board certified in condominium and planned development law by the Florida Bar. This opinion piece was originally published by the Sun Sentinel, which is a media partner of The Invading Sea. Banner photo: Buildings along the coast in Surfside, including the site of the Champlain Towers building after it had been cleared following its collapse (iStock image).
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