The attractiveness of living close to Florida’s beaches and ocean views have long added extra value to coastal properties. However, shifting market conditions are challenging this with a new trend in real estate throughout the Sunshine State.

The combination of rising insurance costs, threat of damage from storms to coastal communities and a growing inventory have slowed the real estate market in Miami and across Florida. The condominium sector has been hit especially hard, facing a sharp downturn after new legislation led to higher homeowner association fees and a host of special assessments.

There is a silver lining as condo prices have remained relatively strong away from the coast, in suburbia and inland Florida.

In January, the median sale price of inland condos across Florida rose by an average of 5.4 percent year over year, compared to a 4.8 percent decline on the Gulf Coast and a 3 percent drop on the Atlantic Coast.

Inland condo prices in Florida also outpaced single-family homes, which saw a 3.7 percent increase.

The data comes from an MLS listings analysis by Redfin in Florida metro areas where condos makeup at least 5 percent of the housing market. The report includes the metro areas of Gainesville, Lakeland, Ocala, Orlando and Tallahassee. The Atlantic Coast category covers Deltona-Daytona Beach, Fort Lauderdale, Jacksonville, Key West, Miami, Palm Bay, Port St. Lucie, Sebastian and West Palm Beach. The Gulf Coast includes Cape Coral, Crestview, Homosassa Springs, Naples, North Port-Sarasota, Panama City, Pensacola, Punta Gorda and Tampa.

“Insurance is much cheaper inland than on the coast, which leads to lower HOA fees and more affordable monthly payments for condo owners,” said Christopher Maggart, a Redfin sales manager covering Orlando. “Condo buildings in central Florida also 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.”

Homeowners' association fees have skyrocketed across Florida in recent years, making it harder to find condo buildings with low fees and increasing demand for those that do. This is partly due to the rise in natural disasters and soaring insurance costs.

Additionally, the 2021 collapse of a 12-story condo building in Surfside, which claimed nearly 100 lives, led to stricter regulations. In 2022, Florida passed Senate Bill 4-D, requiring structural inspections for condo buildings with at least three stories once they reach 30 years old (or 25 years if they are within five kilometers of the coast). The law also mandates that buildings with at least three stories maintain sufficient reserve funds for future repairs and maintenance.

Many homeowners' associations have been raising fees and imposing steep special assessments to comply with the new safety regulations, which had a deadline of December 31.