Becker Business with Scott Becker

Episode Summary: "The Condo Market is Tanking"

Date: January 2, 2026

Episode Overview

In this episode, host Scott Becker examines the troubling downturn in the U.S. condominium (condo) market. Drawing from recent real estate trends, personal investment anecdotes, and a Wall Street Journal article, Scott unpacks why condos have experienced their worst year in more than a decade and explores the numerous forces driving this decline.

Key Discussion Points & Insights

1. Condo Market Overview

• Condo market decline:
  "Condos are moving in the wrong direction. They had the worst year overall in more than a decade." (01:02)
  Scott emphasizes that, unlike home prices, which are stable or improving slightly, both condo prices and sales are sharply declining.

2. Drivers Behind the Decline

• HOA Dues Rising:
  "Homeowners associations, a little like communists, keep on raising the dues and when the more that you raise the dues, the more that it makes it harder for units and buildings. They have value because there’s such an anchor of cost around the property." (01:30)

  • Escalating Homeowner Association (HOA) fees are significantly increasing the cost burden, dragging down property value and buyer interest.

• Soaring Insurance Costs:
  "You’ve also got a situation where insurance is also going up for condos in a lot of different markets for a lot of different reasons. Part of this is driven by in Miami, where the condo buildings collapsed a few years ago, but it’s also happening a lot of other places as well." (02:08)

  • Rising insurance premiums, especially post-high-profile incidents like the Miami condo collapse, are compounding ownership costs nationwide.

• Oversupply & Urban Appeal:
  "Too much supply. Some urban centers where there are a lot of condos are becoming less popular for buyers because of problems with some of the urban centers." (02:35)

  • Excess inventory and diminished demand for urban living, brought on by city-specific challenges, reduce condo desirability.

• Shifting Buyer Habits:
  "Finally, you’ve got a younger generation that’s doing more renting than ever before versus pushing into the American dream of homeownership, and that’s also impacting condo sales." (02:48)

  • Millennials and Gen Z are opting to rent, putting additional downward pressure on the for-sale condo market.

3. Personal Anecdotes & Market Timing

• Self-deprecating humor:
  "Whenever we do buy anything, it seems like that’s the purest signal you could get. It’s probably time to sell that asset class. We bought a new condo. It means condo sales are going the wrong direction." (03:03)

  • Scott lightheartedly acknowledges that his recent purchase of a condo may be an indicator of a downturn.

• Media Reference:
  "This article in the Wall Street Journal on it this morning really helped reaffirm that we obviously bought at the wrong time." (03:17)

  • He references a recent Wall Street Journal piece that supports his analysis.

Notable Quotes

• On HOAs:
  "Homeowners associations, a little like communists, keep on raising the dues..."
  (Scott Becker, 01:30)

• On rising costs:
  "Insurance is also going up for condos in a lot of different markets..."
  (Scott Becker, 02:08)

• On over-supply and urban demand:
  "Some urban centers where there are a lot of condos are becoming less popular for buyers..."
  (Scott Becker, 02:35)

• On generational trends:
  "You’ve got a younger generation that’s doing more renting than ever before versus pushing into the American dream of homeownership..."
  (Scott Becker, 02:48)

• On timing in the market:
  "Whenever we do buy anything, it seems like that’s the purest signal you could get. It’s probably time to sell that asset class..."
  (Scott Becker, 03:03)

Timestamps for Key Segments

• 01:02: Condo market's worst year in a decade
• 01:30: Impact of rising HOA dues
• 02:08: Surge in condo insurance rates and Miami collapse context
• 02:35: Effect of oversupply and unattractive urban centers
• 02:48: Generational shift toward renting
• 03:03: Personal investment anecdote & humor on market timing
• 03:17: Reference to Wall Street Journal coverage reinforcing the trend

Tone & Style

Scott Becker delivers the episode in an engaging, conversational tone, blending sharp insights with dry humor. His candid reflections, market knowledge, and accessible explanations make the episode both informative and entertaining, especially for an audience tracking real estate and broader business trends.

Listen for: A concise market breakdown, real-world anecdotes, and a reaffirmation of current media analysis—all delivered with Scott’s signature wit.

Note: This summary omits sponsor advertisements and standard outro material.