CBS News: Miami Condo Market Faces 'Risk Of Collapse' In 2025
CBSNews.com in Miami interviewed condo expert Peter Zalewski of the Miami Condo Market Investing Club™ for the story.
Spurred on by a new UBS report, veteran journalist Joe Gorchow of CBS News in Miami examined the future of condo prices in South Florida.
During the nearly four-minute report, Gorchow interviewed a seller, a real estate agent and expert Peter Zalewski of the Miami Condo Market Investing Club™ to discuss the UBS claim that the market “most at risk for a bubble burst” is Miami due to a number of factors.
“The report cites laws enacted following the Champlain Towers South collapse in Surfside, as well as, rising insurance costs and lower mortgage rates, which have led to an increase in condos hitting the market,” according to the report.
In the aftermath of the June 24, 2021, collapse of the Champlain Towers South in the town of Surfside on the barrier island of Miami-Dade County, everyone from residents to building inspectors, politicians to bankers understand better than ever the importance of ensuring that no Florida condo building ever collapses again.
Nearly 100 people died and a $1 billion settlement was reached with the families of the victims.
A federal investigation is currently underway but the preliminary reports suggest a flawed design coupled with a lack of upkeep by the condominium’s association contributed to the disaster.
The Florida Legislature has taken a number of steps - prompted by insurance companies threatening to withdraw coverage in the state - to ensure that nothing like this ever happens again.
Watch The CBS News Report
Up until now, the state’s measures were being implemented slowly but that all changes in less than 90 days when many of the measures take effect.
Beginning in January, condo associations in Florida will be required to start collecting money from unit owners to place into reserve accounts that will be used exclusively to fix, maintain and improve the structural integrity of residential buildings that are at least three-stories tall.
People are dubbing this moment as the 2025 Florida Condo Association Financial Cliff as it is expected to result in significantly higher costs for unit owners. News reports are already chronicling condo owners selling their units at deep discounts ahead of the 2025 deadline.
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