Condo owners across America are discovering that their supposedly affordable homes may come with an expensive catch: They can be extraordinarily difficult to sell.
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They → discover → catch
Will Hudson, 43, bought a two-bedroom condo in Golden, Colorado, sight unseen for $260,000 in July 2024, according to the outlet.
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Hudson → buy → outlet
The public employee had previously lived in the complex in his 20s and hoped to return to a place he remembered fondly.
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he → live → place
Instead, he now calls the purchase “the greatest mistake of my life.”
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he → call → life
Hudson told MarketWatch that recurring water shutoffs, flooding in common areas and rising HOA fees — now nearly $470 per month — left him wanting out within a year.
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shutoffs → tell → year
But selling could prove just as painful.
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selling → sell → ?
Another unit in the complex languished on the market even after its asking price was slashed from $270,000 in May 2025 to $149,000 this month.
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price → languish → 149,000
The property is now under contract, but the sale has not yet closed.
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sale → close → contract
Hudson estimates that selling his own condo could wipe out the $58,000 he put down — and potentially cost him even more after broker commissions and closing expenses.
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he → estimate → commissions
“I feel trapped,” he told the outlet.
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he → feel → outlet
His predicament reflects a broader squeeze facing condo owners as buildings’ growing expenses are passed down to individual residents.
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expenses → reflect → residents
Among condo buildings constructed before 2000, 8.5% imposed a special assessment in 2025, with affected owners receiving a typical bill of nearly $2,500, according to data from HOA-management platform Vantaca.
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owners → construct → Vantaca
Across buildings of all ages, the median special assessment has risen from $930 to $1,100 over the past four years, the data showed.
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data → rise → years
The pressure may soon intensify: Some 54% of community associations plan to raise their fees to cover expenses including insurance and new reserve requirements taking effect in 2027, according to the report.
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% → intensify → report
That is undermining one of the condo’s traditional selling points.
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That → undermine → points
Condos have historically offered a less expensive entry into homeownership than detached houses.
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Condos → offer → houses
But once monthly HOA charges and special assessments are factored in, buyers may find that a lower-priced unit is not necessarily cheaper to own.
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unit → factor → ?
National condo and co-op sales fell 2.7% year-over-year in August, according to National Association of Realtors.
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sales → fall → Realtors
Meanwhile, condos now represent 15% of active inventory across the Mid-Atlantic region served by Bright MLS, stretching from New Jersey to Virginia.
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condos → represent → Virginia
Before the pandemic, they accounted for less than 10%, Bright MLS Chief Economist Lisa Sturtevant told the outlet.
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Sturtevant → account → outlet
Insurance is making the problem even worse.
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problem → make → ?
As insurers raise premiums — or refuse to cover some condo buildings altogether — associations are passing those expenses to owners through higher monthly fees and assessments, according to MarketWatch.
Buildings without sufficient master insurance policies can also fail to meet federal lending standards, preventing prospective buyers from qualifying for conventional mortgages backed by Fannie Mae or Freddie Mac.
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Buildings → raise → Mae
Hudson encountered that issue when he purchased his unit, he told the outlet.
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he → encounter → outlet
His initial lender rejected the property because the HOA’s master policy did not provide adequate roof coverage under federal guidelines.
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policy → reject → guidelines
He eventually found another lender, but only after putting 20% down.
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He → find → %
Now, he worries a future buyer could face the same financing roadblock.
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buyer → worry → roadblock
The result is a vicious cycle: Rising building costs push up HOA fees, higher fees deter buyers and insurance or reserve problems further restrict the pool of people capable of financing a purchase.
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problems → rise → purchase
Andrew Lester, president of FirstService Financial, advised prospective buyers to examine a condo association’s reserve studies, insurance coverage, structural reports and the age of major systems such as the roof, plumbing and elevators.
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Lester → advise → roof
Missing documents or delayed answers should be treated as red flags, he told MarketWatch, because buyers are taking on not only an individual unit but also a financial stake in the condition and management of the entire building.
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buyers → miss → building
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