Rising HOA fees and insurance costs trap condo owners and depress resale values

Will Hudson bought a two-bedroom condo in Golden, Colorado for $260,000 sight-unseen, only to confront recurring water shutoffs, flooding and HOA fees that have climbed to nearly $470 a month. Attempting to sell, he faces a market where a comparable unit’s price fell from $270,000 to $149,000 and remains unsold, risking loss of his $58,000 down payment plus transaction costs. Across the nation, 8.5% of pre-2000 condos imposed special assessments in 2025, with median fees rising from $930 to $1,100 over four years, and 54% of associations plan further hikes to cover insurance and new reserve mandates effective 2027.

National Association of Realtors reports a 2.7% decline in condo sales year-over-year, while Bright MLS notes condos now represent 15% of active inventory in the Mid-Atlantic, up from under 10% pre-pandemic. Insurers are raising premiums or refusing coverage, prompting associations to shift costs to owners and sometimes failing federal mortgage eligibility standards, as seen when Hudson’s original lender rejected his purchase for insufficient roof coverage. Experts advise prospective buyers to scrutinize reserve studies, insurance policies and the condition of major building systems before committing.