U.S. condo prices fell 2.2% year over year in May—the second-largest drop on record.
Condo sales dropped nearly 12%, with listings piling up and time on market increasing.
Florida and Texas metros saw the sharpest declines in both prices and sales.
The U.S. condominium market is feeling the strain of rising costs and buyer hesitation, according to a new report from Redfin. In May, the median condo sale price fell 2.2% year over year to $354,100—the second-largest decline since Redfin began tracking this data in 2012.
That may be a troubling signal for a segment of the housing market long considered an entry point for homeownership.
While the broader housing market remains sluggish, condos are bearing the brunt of the downturn. The 2.2% price decline is surpassed only by April 2023’s 2.9% drop, which came shortly after the market peaked. Single-family homes, by contrast, experienced a modest 0.5% year-over-year price increase in May, bringing the median sale price to $462,206—the slowest growth rate in nearly two years, but still growth.
HOA fees are a turn-off
The downturn in condos is due to a stark imbalance: there are approximately 80% more condo sellers than buyers, driven in part by rising homeowners association (HOA) dues, ballooning insurance premiums, and costly special assessments from condo associations. These financial burdens are discouraging both existing owners and potential buyers.
“It’s a slow housing market across the board, but condos have been hit particularly hard,” said Aditi Jain, a Redfin Premier agent in Boston. “A lot of condo associations don’t allow buyers with FHA loans, which is limiting sales. Two of my clients had to back out of purchases due to financing issues.”
Even though prices are going down, buyers aren’t snapping them up. Sales of condos fell 11.9% year over year in May—the sharpest drop since June 2024 and more than triple the decline seen in single-family home sales (-3.7%). This pushed condo sales to their second-lowest level on record for the month of May.
Taking longer to sell
Properties are taking significantly longer to sell. The average condo that went under contract in May did so after 46 days on the market, up seven days from last year and the slowest May since 2015. In contrast, single-family homes averaged 38 days, also sluggish but comparatively faster.
As a result of these extended timeframes, condo listings are building up rapidly. Active condo listings in May reached their highest level in over a decade, reflecting an oversupply amid dwindling demand.
Condo markets in Florida and Texas are cooling the fastest. In Deltona, FL, the median condo price dropped a staggering 32.2%, followed by Crestview, FL (-32%), Houston (-23%), and Tampa, FL (-19%). Of the 10 U.S. metros with the steepest condo price declines, seven are in Florida and two are in Texas.
Florida also dominates the list of metros with the largest sales declines. Dallas led with a 33.3% drop in condo sales, followed closely by Palm Bay (-32.8%), Phoenix (-32.7%), and several other Florida cities, including Port St. Lucie and Orlando.
A combination of factors is weighing on these markets, including excess supply from the pandemic-era building surge and a rise in insurance and maintenance costs. In Florida specifically, new safety regulations enacted after the tragic 2021 Surfside condo collapse have further driven up HOA fees and reduced buyer appetite.
East Coast markets still healthy
Despite the national downturn, some markets—particularly in the eastern U.S.—are showing resilience. New Brunswick, N.J., saw a 14.9% year-over-year increase in condo prices, the highest among major metros, followed by Montgomery County, Pa., and Pittsburgh (both up 14.1%).
Sales are holding up in select cities too. Indianapolis posted a 27.3% increase in condo sales, followed by Portland, Me., (19.2%) and Charleston, S.C. (11.5%). These regions are benefiting from ongoing supply constraints, which are helping to stabilize both prices and buyer interest.