Condo list prices are falling in some markets, but rising HOA dues and special assessments are making the monthly payment harder to pencil out. A July 7 MarketWatch report spotlighted the growing gap between softer condo prices and rising ownership costs, including regular association dues and special assessments.
The budget pressure is showing up in association finances. A May 2026 survey from the Foundation for Community Association Research found that 54% of responding condominium communities were increasing regular assessments to meet reserve funding expectations, while 14% were using special assessments.
The shift follows a weaker condo market in 2025. In May 2025 condo data, the median US condo sale price fell 2.2% year over year to $354,100, while the median single-family home sale price rose 0.5%. The same analysis reported roughly 80% more condo sellers than buyers at the time.
Lower prices do not always lower monthly costs
Monthly association dues can narrow or erase the affordability advantage buyers expect from a lower-priced condo. A Realtor.com analysis found that 43.6% of US for-sale homes had nonzero HOA fees in 2025, up from 41.9% in 2024 and 34.3% in 2019. Condos and townhomes were more exposed, with 84.8% of those listings carrying HOA dues.
The national median HOA fee rose to $135 in 2025, up from $125 in 2024. That median can understate the pressure in older buildings, coastal markets, and communities with higher insurance costs or underfunded reserves.
For buyers comparing a condo with a single-family home, the useful number is the full monthly obligation. That includes the mortgage payment, association dues, insurance-related costs, and any known or likely assessment.
HOA documents can change the deal
A buyer may qualify based on the purchase price, then reconsider when building documents show a pending assessment, weak reserves, or repeated fee increases. Financing can also become harder if the association cannot satisfy lender questions about reserves, insurance, litigation, owner occupancy, or building condition.
Agents should request the reserve study, recent financial statements, assessment history, master insurance details, and any board discussion of upcoming repairs. The lender’s condo questionnaire can reveal whether a unit is warrantable, which can shape the buyer pool and resale outlook.
New agency standards add another layer of scrutiny, but they should not be the only reason agents review the documents. Fannie Mae’s updated condo insurance requirements started applying to some loan applications dated July 1, and its Limited Review process is set to retire for applications dated on or after Aug. 3.
Older buildings need extra scrutiny
Older, lower-priced condo buildings can look attractive to first-time or budget-sensitive buyers. They can also carry more deferred maintenance, higher insurance exposure, or thinner reserves.
Florida shows how quickly that mix can affect pricing and buyer demand. Redfin’s 2025 analysis found that Florida accounted for seven of the 10 metros with the largest condo price declines and seven of the 10 with the steepest condo sales drops.
The state’s post-Surfside condo reforms added milestone inspection and reserve-funding requirements for many condominium buildings. Those rules were designed around building safety, but they also pushed associations to review reserves, repair needs, and long-term budgets.
Agents in any market can apply the same review. Building age, insurance changes, reserve health, and assessment history all affect whether a condo remains affordable after closing.
Clean documents can keep condo deals moving
More inventory and longer timelines can give buyers room to negotiate on price, seller credits, or assessment coverage. That leverage is most useful when agents know whether the building’s dues, reserves, insurance, and pending repairs will support financing.
For listing agents, current reserve studies, stable dues, manageable insurance exposure, and clear assessment history can help a condo stand out. For buyer’s agents, reviewing those documents before an offer can help clients separate a lower price from a higher-risk monthly obligation.