Condo buyouts more than doubled in 2023 A perfect storm is hitting owners
South Florida in 2023 saw the highest number of condominiums selling out to developers since the pandemic. More buyouts are in the pipeline, raising questions about the future of South Florida’s skyline.
Miami-Dade and Broward saw 18 such buyouts last year, the highest number since 2019 when both counties had a total of 23, according to data from the Florida Department of Business and
Professional Regulation, which tracks condo terminations across the state. Condo buyouts or terminations occur when at least 80% of owners band together and vote to sell to a developer who plans to redevelop the property.
More condo communities want out, according to Peter Zalewski, the founder of the real estate consultancy firm Condo Vultures. He is working on a handful of terminations on behalf of condo associations and is in talks with others working on deals. South Florida, Zalewski said, is likely to
have 35 buyouts in 2024.
It’s a result of the perfect storm hitting condo dwellers, primarily set off
by the collapse of the Champlain Towers in Surfside. The collapse brought on a wave of new
regulations for financial reserves and inspections. As a result, it’s becoming more expensive to live in a condominium, and many residents — especially those on fixed incomes — can’t keep up.
“In the end, you’re going to see the number go up, because of everything that happened with the collapse and insurance,” Zalewski said. “Some people don’t want to pull the trigger until the 11th hour. That’s what we’re looking at — a game of chicken by a few people on the outside who don’t want to terminate.”
While condo buyouts may be gaining steam, it’s