Client Alert: The State of the Condominium Market
Date: January 22, 2026
The Bright Side – Your Unit is Still Worth A Lot
In terms of residential ownership, the main alternative to a condo is a single-family house. The price of single-family houses, too, has gone down, which shows that some of the decline in condo prices is attributable to a general slowing down of residential purchases. Slowdowns are part and parcel of our economy, but owning one’s dwelling will always be a priority for consumers. Many can recall the upsurge in house prices brought about by the pandemic. Now, the economic pendulum has swung back. Though the swing may not be desirable, it will not last forever – nothing does.
But in the meantime, equity is creeping upward. As the article notes, most condo owners have gained equity since they bought their unit, despite the decline in sale prices. Today, the average value of a condo unit is about 40% greater than its value at the time the current owner purchased it. In other words, the recent decline is small compared to the growth over the last decade or so, so the average unit owner’s equity has increased despite the new trend. True, a hit to equity, however much, is cause for concern. But residential property ownership is a long game, played over many years, and a decline or setback in one stretch of that time is no reason to quit the game.
Measures for the Future – Maintain the Stability & Act Proactively to Reverse Sales Prices
Economic and social trends impact the condo market, but that does not mean that condo associations are powerless to address and reverse the decline.
Insurance has become more demanding for condos in the wake of the awful Miami Surfside condo collapse of 2021. Insurance carriers have raised their premiums and may further raise them against an association that makes frequent claims. If the bylaws allow it, associations should urge owners to maintain their own insurance policies and to make claims against them, rather than the association’s policy, when possible. Some associations amend their covenants to say an owner is strictly liable for damage originating in her unit, regardless of fault, allowing for a clearer and quicker determination of who is responsible for the repair, which can reduce excessive claims against the master policy. Associations should act promptly and energetically to address repair emergencies like major leaks, since waiting to see who is liable can worsen the damage. To make insurers more confident, condominiums should catch up on maintenance projects that were put off by the pandemic.
Sure, assessments rise. But if the increase can be kept to what inflation requires and no more, associations can show that dues are reasonable and worth the services they provide. When permitted by the bylaws, associations can buy and rent out a unit to provide an alternate source of income and lessen assessments, too. Associations hampered by delinquent owners can seek judgments and the cost of their attorney’s fees. Budgets that take the long view and invest where appropriate can lead a condominium into greater wealth, which in turn lightens the burden of assessments on its members.
Condo prices may continue to fall for now, but they will not remain low forever, as the demand for owning one’s residence and being near a city is central to modern life. Satisfying this essential need, condominiums are long-term investments that can withstand market swings. After all, they’ve done so before.
The information contained here is not intended to provide legal advice or opinion and should not be acted upon without consulting an attorney. Counsel should not be selected based on advertising materials, and we recommend that you conduct further investigation when seeking legal representation.