Condo Capitalism™ is a weekly podcast hosted by Peter Zalewski of the Miami Condo Investing Club™ that provides data-driven analysis on distressed real estate—foreclosures, shortsales and bank-owned REOs—in the tricounty South Florida region of Miami-Dade, Broward and Palm Beach.
The program tracks the Florida Condo Association Financial Cliff, where rising maintenance fees, special assessments and insurance costs are squeezing cash-strapped owners.
On the show, experts analyze how the national “two-sided risk”—rising inflation and falling employment—magnifies these local pressures, potentially forcing a capitulation by owners who can no longer afford condo living.
Join Peter Zalewski at MiamiCondo.Club for a livestream every weekday at 4 pm (Miami time). On-demand recordings of all shows are available here.
Episode Overview
In the Feb. 26, 2026, episode of the Condo Capitalism™ podcast, host Peter Zalewski discussed the return of the distressed condo market that has not been seen in South Florida in recent memory.
During the 55-minute podcast, Zalewski explored the burgeoning Real Estate Owned (REO) market where lender-owned condos—now representing nearly 2% of total resale listings—are being offered for resale at a 44% discount off the South Florida Overall average price.
The discussion centered on the fact that despite these deep discounts, the supply of REO inventory has ballooned to more than 14 months as bank-owned condo prices remain too high to pencil out for investors.
The increased condo resale inventory puts the bank-owned category firmly in a Deteriorating Buyers Market, according to the Miami Condo Supply Tracker™.
The episode highlights a growing disconnect where condo transaction prices for bank-owned units are significantly less than the asking prices, with Vintage units that are at least 30 years old trading in certain markets at an average price of as low as $116,000.
Zalewski said this pricing gap is occurring as South Florida faces the threat of a Doom Loop scenario where falling property values and rising special assessments combine to create the environment for a cycle of distress for cash-strapped unit owners.
The stockpile of bank-owned units is growing as private Wall Street lenders utilize aggressive mortgage terms that facilitate the quick repossession of properties from struggling borrowers.
With some 60 days left in the 2025-26 South Florida Winter Buying Season, institutional owners are struggling to offload their bank-owned condos at the current prices before the seasonal change to Summer brings heat, humidity and hurricane warnings that typically thin the buyer pool.
Zalewski’s discussion also focuses on how to use the “1% Rule” of real estate investing as a benchmark to determine if a distressed condo can generate enough rental income to cover the rising costs of condo ownership.
The full episode breaks down the South Florida data and the specific metrics needed to identify which of these bank-owned condos are actual deals and which are just distressed traps.
Top 10 Episode Takeaways
Bank-owned condos in South Florida are currently listed at a 44% discount compared to the Overall market average asking price.
