The condominium market across the United States has been in a serious downturn for several years, hitting condo owners harder than those with single-family homes. But recent data from late 2025 suggests the worst might be nearing an end, with some early signs of recovery appearing in December.
Condo prices usually drop faster than single-family home prices during tough economic times and recover more slowly. This happens because fewer people buy condos—often younger buyers, singles, or empty-nesters—compared to families seeking houses with yards. Over the past few years, the condo sector has weakened to levels similar to those after the 2008 financial crisis.
Several issues have made condos less appealing. Many potential buyers worry about rising homeowners’ association (HOA) fees, higher insurance costs, and possible special assessments—large one-time payments—for fixing old buildings or catching up on maintenance. Strict lending rules from Fannie Mae and Freddie Mac also make it harder for some condos to qualify for conventional mortgages, especially if the building’s finances look shaky. These problems caused condo prices to fall 1.7% overall in 2025, according to ICE Mortgage Technology data. Redfin even described the summer of 2025 as the strongest buyer’s market for condos since at least 2013 (except for a brief period during early pandemic lockdowns).
Despite these challenges, December 2025 brought hopeful news. According to the National Association of Realtors (NAR), condo sales and price growth beat the gains seen in single-family homes that month. Condo sales rose 5.3% month-over-month to a seasonally adjusted annual rate of 400,000, and the median condo price increased 1.5% year-over-year to $364,400. NAR Chief Economist Lawrence Yun noted that condos had suffered more price declines throughout the year, but buyers might now view the lower prices as a good opportunity to enter the market.
Real estate markets differ greatly by location. In areas with low inventory, such as parts of the Northeast and Midwest, condo prices have held steady or even reached record highs in some cities. In contrast, certain regions face deeper corrections. In Florida, post-2021 Surfside condo collapse safety reforms have required buildings to fund reserves properly, leading to big fee increases and special assessments. This has caused condo values to drop 11% or more in the hardest-hit areas. In the Atlanta region, Zillow data showed condo prices fell 4.6% in 2025.
One real-life example comes from Alpharetta, Georgia, where agent Nattalie Cornwall has struggled to sell her condo. She listed it in 2023 for $239,000 and got quick offers, but buyers backed out after learning the HOA reserves were underfunded, making the unit ineligible for standard loans. She now rents it on Airbnb and estimates she’d have to drop the price to $150,000–$165,000 to attract cash buyers. A new HOA board is working to fix the finances, which she hopes will help her sell later in 2026. As she points out, very cheap condos often signal underlying problems.
In South Florida, agent Casey Prindle sees some stabilization. Median condo sale prices in Palm Beach County have stayed around $300,000, and some buyers are jumping in for deals where major repairs have already been funded or completed. These buyers avoid the risk of future large bills. However, experts like Joel Berner from Realtor.com caution that higher fees and insurance risks continue to deter many people. He says the classic high-floor condo isn’t as desirable as it once was, and the market may not have fully bottomed out yet.
Overall, while the condo market remains tough—with affordability issues, financing hurdles, and location-specific problems—the December uptick in sales and prices offers cautious optimism. Lower mortgage rates and bargain opportunities could draw more buyers in 2026, but recovery will likely be uneven and gradual, depending on how well HOAs address maintenance and financial health. For now, the bottom appears closer than it did earlier in the downturn, though it’s not guaranteed everywhere.
