Condo Market Hits a Decade Low for Investors—Is It an Opportunity for You?
Investor interest in U.S. condos has dropped to its lowest level in ten years, according to newly released data, with only 8,509 units purchased nationwide in Q1 2025. That marks a 3% year-over-year decline—and aside from the early-pandemic freeze, it’s the weakest quarter for condo investor activity in a decade.
While this might sound like bad news on the surface, especially if you own a condo, there’s more to it than just declining investor appetite. The pullback is largely driven by shrinking margins for rental properties, rising HOA fees, and insurance hikes—especially in places like Florida, where many condos are near the coast and more exposed to climate risk.
For current condo owners, this slowdown is a wake-up call to keep an eye on your building’s financials and reserves, particularly if you plan to sell. When investors step back, the buyer pool gets narrower—and that can translate into longer time on market or pressure to negotiate more on price.
But if you’re a buyer looking to live in a condo rather than rent one out, this could be a real window of opportunity. Nearly 70% of condos nationwide sold below list price earlier this year, the highest share in five years. And with less competition from cash-heavy investors, today’s buyers might actually find themselves with some negotiating room—something we haven’t seen much of in recent memory.
Whether you’re buying or selling, the shifting condo landscape is worth watching closely. The investor retreat is reshaping the dynamics of the market, especially in states where HOAs and insurance costs are getting harder to predict. That means local due diligence matters more than ever.