HOA crash hitting Florida. 500% spike in liquidations.

HOA costs Florida are skyrocketing, causing many home and condos owners to sell their properties. Pushing Florida into the beginning stages of a housing crash in 2024, where inventory of homes for sale has spiked.

The HOA costs are increasing because Florida Gov Ron Desantis signed a bill which mandated that all condo associations in the state have fully funded reserves by 2025. The result is huge increases in assessments for many homeowners.

This is also a nationwide problem. With HOA prevalence and costs increasing all across America. 45% of homeowners in Florida are in an HOA, while 40% in Colorado are, and 35% in California.

These skyrocketing HOA and insurance costs are intersecting with a big spike in mortgage rates over the last two years. Causing buyer demand to plummet in the Florida real estate market.
---

DISCLAIMER: This video content is intended only for informational, educational, and entertainment purposes. Neither Reventure Consulting or Nicholas Gerli are registered financial advisors. Your use of Reventure Consulting's YouTube channel and your reliance on any information on the channel is solely at your own risk. Moreover, the use of the Internet (including, but not limited to, YouTube, E-Mail, and Instagram) for communications with Reventure Consulting does not establish a formal business relationship.

[ReventureConsulting]

The more time I spend in Florida, the more amazed I am at the inventory levels.

Never in the last 7-8 years have we seen so many homes for sale. And now prices are starting to drop. Head to www.reventure.app to track the data in your ZIP code.

Start with inventory figures for free. And then upgrade to a premium plan to see how fundamentally overvalued prices are in your area, and the forecast for where they're heading in the next year.

[nicolasbenson]

This happened with the 2004 housing boom - home prices were greatly inflated, meaning people couldn't sell later because they owed more on the house than they could sell for. I know quite a few people who bought then, thinking they were making a good investment to sell later, but it's taken until the COVID housing boom for the prices to come back to those original amounts.

[XYZ-bieb]

i would never buy a house with an HOA. absolutely never.

[ln]

I bought into an HOA once. I will NEVER do that again. To those who say, serve on the board: I did. I never knew my neighbors were so petty. The entire experience was a nightmare. Never again.

[tonysilke]

I’m in Ohio and the housing market here over the last 7-8 years is unlike anything I’ve ever seen. Homes that were bought for $130K in 2015 are now being sold for $590k. I’m talking about tiny, disgusting, poorly built 950 square foot shit boxes in quiet mediocre neighbourhoods. Then you’ve got Better, average sized homes in nicer neighbourhoods that were $300K+ 10 years ago selling for $750k+ now. Wild times.

[DonaldMark-nese]

Back in the day, when I purchased my first home to live-in; that was Miami in the early 1990s, first mortgages with rates of 8 to 9% and 9% to 10% were typical. People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Pretty sure I'm not alone in my chain of thoughts.

[edmundj]

More and more people are staying away from houses with HOA. Include me in the 70% who hate HOA.

[lesliecas]

You can't avoid an HOA in a condo building. Someone has to take charge. The HOAs for single family homes are ridiculous and unnecessary.

[ThompsonWhite-h]

In the USA, individuals living in cars due to partial homelessness result from a complex interplay of factors. High housing costs relative to income, stagnant wages, and income inequality drive this issue. Job loss, weak social support, medical expenses, evictions, and lack of affordable housing also contribute, while systemic problems and inadequate policies further perpetuate the phenomenon.

[jerrycampbell-utyf]

Despite the fact that I invest, I am frustrated by my incapacity to assess each company's performance and determine whether or not this is the best time to buy stocks. Inflation is depleting my monetary reserves. I need reliable market trajectory data at this point, but I'm not sure what to do.

[speedy]

Did it twice, bought in a HOA…both times, in Florida. F that…..Never again.

[Joe-shtf]

I purchased a house in a HOA once, NEVER AGAIN.

[ecaterinabolocan]

My friend bought a townhouse with HOa in 2019. He was paying $380 hoa fees. Now he is paying $2000 per month with assessments that never end! Ridiculous!

[jeannettasmith]

I lived in an HOA in Florida. It was the first, last, and only HOA in my lifetime. I hated every minute of it. As you mentioned, the monthly fee wasn’t exorbitant, but the rules, restrictions, and citations were ridiculous. Never again.

[davidfein]

I live on South Beach. We always collected Reserves in our Maintenance fees. We have had reserves since the building went condo. We had a upstanding management company that did what they should have. The problem comes from horrible
Condo management companies, that keep HOA's low so the the units sell,

[CroisMoi]

I’m renting in Dallas. They harass me constantly about tiny brown patches in the grass, when I water 3 x weekly. The grass they are supposed to maintain has brown patches too. Last year I took pictures of their brown patches and asked them how they could hold me to a higher standard than they were willing to maintain. They stopped bothering me. They act like everyone here works for them. People panic trying to fix their lawns in the boiling heat of summer.

[GreenNoDeal]

Why would anyone ever pay hand over fist for a house only to give someone else authority over their investment? Price point dictates upkeep. HOA’s are a scam.

[dougscott]

We sold in 2021 and after 21 years we still do not know what the HOA did with our money.

[NancyFranciss]

Wow, a 500% spike in HOA liquidations? Looks like the Florida real estate market is going to be on a rollercoaster ride! I’ve been sitting on my $23k emergency fund, itching to start investing, but with this kind of chaos, where’s the headstart? Maybe I should start looking at foreclosure auctions, but who knows if that’s a good idea now. Anyone else feeling like they’re standing on the edge of a cliff with their money?

[carlalv]

This hard-working, educated man is telling the TRUTH. I moved from Oregon to Florida 12 years ago. It's happening. It's REAL. Thank you.