Florida's Inland Condo Market Shows Resilience Amid Coastal Declines

Inland Florida Emerges as Bright Spot in State's Troubled Condo Market

While Florida's coastal condo markets face significant headwinds, a surprising trend has emerged in the state's interior regions. Recent data analysis reveals inland Florida condos experienced a 5.4% year-over-year price increase in January 2025, contrasting sharply with declines of 4.8% along the Gulf Coast and 3% on the Atlantic Coast. This price resilience in inland areas outpaced even single-family homes, which saw a more modest 3.7% increase.

This market divergence stems from several key factors that distinguish inland condominiums from their coastal counterparts, including insurance costs, building age, natural disaster vulnerability, and regulatory compliance expenses. The trend represents a significant shift in Florida's traditionally coast-dominated real estate market.

Lower Insurance Costs and Reduced Disaster Risk Drive Inland Appeal

One of the primary advantages fueling inland Florida's condo market strength is substantially lower insurance costs. Christopher Maggart, a Redfin sales manager covering Orlando, explained, "Insurance is much cheaper inland than on the coast, which leads to lower HOA fees and more affordable monthly payments for condo owners."

This insurance disparity directly correlates with natural disaster risk profiles across regions:

• Only 4.8% of inland Florida condo listings face high flood risk

• By comparison, 59.4% of Gulf Coast and 45.7% of Atlantic Coast condos have high flood risk exposure

• Tallahassee exemplifies this advantage with just 0.9% of condo listings in high flood risk areas

The financial implications of these risk differences are substantial. Key West, with 81.1% of condos facing high flood risk, shows a median monthly HOA fee of $1,063—more than four times Tallahassee's $250 median fee. This stark contrast makes inland properties significantly more affordable on a monthly basis, despite rising property values.

"A lot of homeowners associations on the coast are still paying for hurricane damage that happened years ago," noted Juan Castro, a Redfin Premier agent in Orlando. "The condos in Orlando are newer, more resilient and 50 miles away from where storms typically hit."

Newer Buildings and Regulatory Compliance Create Market Advantage

Building age represents another crucial factor in inland Florida's condo market resilience. Less than half (47.7%) of inland condo inventory exceeds 30 years of age, compared to 57.1% on the Gulf Coast and a substantial 71% along the Atlantic Coast.

This age difference has significant implications following the implementation of Senate Bill 4-D in 2022. The legislation, enacted after the tragic Surfside condo collapse, requires:

• Structural inspections for buildings at least three stories tall once they reach 30 years old (25 years if within three miles of coastline)

• Adequate reserve funds for future maintenance and repairs

• Compliance deadline of December 31, 2024

Maggart highlighted that "condo buildings in central Florida tend to be newer and up to date with recent regulations. The condo buildings here that are older than 30 years tend to be no taller than two stories, so they're not required to go through the inspections that often drive up HOA dues."

Market Contradictions: Rising Prices Despite Inventory Surge and Sales Decline

Paradoxically, inland Florida's price resilience occurs amid challenging market fundamentals. The region experienced:

• 37.5% year-over-year increase in condo inventory (compared to 27% on Atlantic Coast and 19.2% on Gulf Coast)

• 15.9% decline in condo sales (versus drops of 7.8% on Gulf Coast and 6.9% on Atlantic Coast)

• Single-family homes performed much better with only a 2.1% sales decline in inland areas

This contradiction highlights a selective market dynamic where quality properties command premiums despite overall market slowdown. "Buyers have so many options that they're overwhelmed," Castro explained. "The condos that do sell are the best ones on the market, and there's competition for those, which may be one reason sale prices are resilient even though the market is slow."

HOA Fee Disparities Across Florida's Regions

HOA fees represent a critical component of monthly housing costs for condo owners, and the disparities across Florida regions are significant:

Region	Lowest Median HOA Fee	Highest Median HOA Fee
Inland	Tallahassee: $250	Lakeland: $522
Gulf Coast	Homosassa Springs: $384	Crestview: $1,011
Atlantic Coast	Jacksonville: $500	Key West: $1,063

Despite having the lowest fees, inland regions are experiencing rapid HOA cost increases, with Lakeland seeing a 27.6% year-over-year jump and Tallahassee close behind at 25%. These increases reflect growing reserve requirements and preparatory measures for upcoming compliance needs as buildings age.

"Condo owners are trying to sell because HOA fees are rising, but a lot of house hunters aren't biting for that same reason," noted Castro, highlighting a fundamental challenge in the market.

Market Insights: Understanding Florida's Evolving Condo Landscape

Why are inland Florida condo prices rising while coastal prices fall?

Inland condos benefit from a perfect storm of advantages: substantially lower insurance costs, reduced natural disaster exposure, newer buildings requiring less maintenance, and fewer regulatory compliance expenses. These factors create lower monthly carrying costs, making them more attractive to buyers despite rising purchase prices.

Are inland Florida condos a good investment in 2025?

The answer depends on several factors. While prices are currently rising, the significant increase in inventory (37.5% year-over-year) and substantial sales decline (15.9%) suggest caution. Properties with reasonable HOA fees in well-maintained buildings likely represent the best opportunities, while buildings approaching the 30-year mark may face increasing costs.

How much can buyers save on HOA fees by choosing inland condos?

The savings can be substantial. The median monthly HOA fee in Tallahassee ($250) is nearly 75% less than Miami ($965) and less than a quarter of Key West's median ($1,063). Over a year, this difference can translate to savings between $8,580 and $9,756.

Will inland Florida's HOA advantage continue in the future?

While the fundamental insurance and disaster risk advantages will likely persist, HOA fees are rising rapidly in inland areas (up to 27.6% year-over-year). As buildings age and approach regulatory thresholds, fees may continue to increase. The most significant advantage will remain with newer, low-rise buildings that face fewer inspection requirements.

How is Senate Bill 4-D affecting Florida's condo market?

The legislation has created a two-tier market where buildings exempt from stringent requirements (under three stories or newer than 30 years) command a premium. Properties facing immediate compliance needs often experience significant special assessments, driving some owners to sell. This regulatory environment amplifies the advantages of inland Florida's newer housing stock.