Inflation, condo fees and property insurance: What to expect in 2025

Inflation showed signs of easing in 2024 after reaching record levels just two years ago. The rate of price increases finally slowing, which is why after 11 consecutive rate hikes, the Federal Reserve changed course this year and did several rate cuts.

But your budget is probably still reeling from the reality that a lower inflation rate doesn’t mean we’re paying less. 

The overall cost of food inched up each month in 2024.

Food prices were 2.4% higher in November than a year earlier. We’re paying more for several types of food, including meat (2.6%), butter (3.6%) and eggs, which experienced a double-digit percentage increase compared to last year (+37.5% Nov 2024 v Nov 2023). 

We’re not just paying up for food. Prices for other essentials like your home (shelter +4.7%) and medical care (+3.7%) were higher in November than they were a year ago.

The silver lining: You may be feeling some relief with energy prices (-3.2%) and at the pump (gasoline -8.1%)

If you live in a condo, especially in an older building, there’s a good chance you’re feeling the rising cost of owning a condo.  

“You know, all of a sudden, you pay $120,000 more for your apartment,” said condo owner Daniel Lezcano. 

NBC6 heard from many owners in South Florida who are worried about large special assessments.

The trend is fueling a surge in the number of older condos on the market in 2024. 

“These special assessments… they're growing $100,000, $200,000. I've heard as high as $350,000 per unit to fix the structural imperfections in these older buildings, basically rendering that inventory unsellable at the moment,” said Craig Studnicky, a broker and the CEO of the real estate firm ISG World. 

The assessments, in many cases, are the product of legislative changes passed a few years ago, aimed at making buildings safer after the deadly Champlain Towers South collapse in 2021.

Calls for a special legislative session to address the financial burdens of some of the reforms on condo owners went nowhere in 2024. 

But legislative leaders from both parties told NBC6 condo reform will likely be a top priority in 2025.

“What options can or can't come through the legislature, we'll see when people start to file bills. We are going to discuss condos again. It's a priority for us because we want to save lives and we want to make sure that people can feel safe in their own home,” said Florida House Speaker Daniel Perez (R-Miami). 

In an interview with NBC6, Democratic State Sen. Jason Pizzo suggested we could see an overhaul of the Florida Department of Business and Professional Regulation (DBPR) – the state agency tasked with regulating condo associations.

“You and your viewers should absolutely expect that the DBPR of today, which is licensing nail salons, and building officials, property managers, and barbers, that come next session will not look the way it does now as it relates to condominiums,” Pizzo said.

When it comes to the cost of property insurance, the Insurance Information Institute, an industry group, says rates stabilized in 2024.

There are also more companies now writing policies in our state.

The institute says insurance rates are projected to remain stable in 2025, which will hopefully mean you won’t see any drastic increases to your premiums.

But overall premiums do remain high, especially here in South Florida, which is why state lawmakers have said they plan to look into ways of improving affordability in the new year.