Although the U.S. condo sector has historically been viewed as a relatively liquid slice of urban and resort-oriented housing, a growing share of resellers are now crystallizing losses as prices register their steepest annual declines since 2012. Inventory remains stubbornly elevated.
Although long considered liquid, the U.S. condo market now faces steep price declines and stubbornly elevated inventory
Across key markets, condo prices have logged the biggest annual downturn in over a decade, with one in three units resold between July 2024 and July 2025 trading below their prior purchase price, and more than one in ten condos valued this fall at less than what current owners originally paid. This downturn contrasts with the multifamily rental sector, where capital availability remains relatively robust and investors are preparing for increased activity once conditions stabilize.
The pricing reset has been most evident during the recent fall season, when condo values posted their sharpest sequential declines in years. This underscores weakening absorption and the difficulty of clearing a growing backlog of listings.
This imbalance is being reinforced by seller behavior, as nearly 7% of condo owners withdrew their listings in September, the highest share since 2015. This reflects a standoff in which many refuse to transact at a loss and instead allow days-on-market to extend. Many owners of single-family homes are choosing to watch the market from the sidelines rather than engage amid the condo sector’s ongoing decline.
In Phoenix, for example, some properties have been listed since 2023 with minimal showings, while Park City owners have opted to remove units from the market and place them into the rental pool rather than accept reduced bids.
Market data show approximately 72% more condo sellers than buyers in August, down from 81% in the spring, yet still indicative of pronounced oversupply, particularly in Austin and San Antonio where inventory has become saturated.
Downtown corridors in San Francisco and Portland, historically reliant on office-centric demand, have seen reduced desirability in the wake of remote work, adding further drag to turnover velocity. In contrast, buyers in markets with Executive Condominiums have continued to demonstrate confidence, with these hybrid housing options maintaining strong demand due to their affordability relative to private condominiums.
At the same time, buyers are increasingly hesitant, frequently bypassing condos in favor of single-family homes with yards. In many resale cases, even material price cuts have not generated offers.
Elevated and rising homeowners association fees, ranging from about $100 to over $1,000 per month, further constrain demand. This is especially true in vacation and older Florida properties facing costly post-Surfside structural and insurance requirements.
Meanwhile, lenders and insurers continue to treat aging condo stock as higher-risk assets, contributing to thinner buyer pools and deeper Q4 price discovery.
