It’s almost impossible to sell a condo unit these days: ‘I feel trapped’

Will Hudson, a 43-year-old public employee, found himself in a difficult situation when he bought a two-bedroom condominium in Golden, Colorado, for $260,000 in July 2024. Initially excited about his new home, he soon realized that living there would be a challenge. Over the following year, he encountered various issues, including water shutoffs and flooding in common areas, which made it hard for him to enjoy his new residence.

After multiple price adjustments, Hudson finally found a buyer for his unit, but the sale was still pending. Hudson decided to stay updated on the progress of the sale, hoping to find a resolution. Amidst his troubles, Hudson faced escalating HOA fees, which increased to nearly $470 per month. These fees, combined with the need to pay special assessments, left him feeling trapped and frustrated. The rising cost of insuring his building was passed on to him and other residents, causing his monthly expenses to rise.

Hudson's situation is not unique. Many condo owners across America are experiencing similar struggles as they grapple with increasing HOA fees and special assessments. These costs are being driven up by rising insurance premiums and the need to meet new financial reserve standards that will take effect in 2027. As a result, selling a condo has become more challenging, as buyers are wary of the potential future costs.

In August, sales of condominium units dropped by 2.7% compared to the same period last year, according to the National Association of Realtors.

Many condo owners are finding it tough to sell their units, with a significant portion of active inventory now consisting of condos. In the New Jersey to Virginia area, condos make up 15% of the market, up from less than 10% before the pandemic. Rising HOA fees have made condos more expensive on a monthly basis than single-family homes for some buyers. This trend has led to a decrease in demand for condo units, impacting both sellers and potential buyers.