Florida's condo reform law (HB 913) hit its biggest deadline on January 1, 2026: older condo associations now have to be fully funded on reserves, and buildings 30 years or older (25 if they sit within three miles of the coast) must complete milestone structural inspections. For downtown Delray Beach, that means two things. Well-run, newer buildings near Atlantic Avenue are selling at a premium because buyers trust them. Older buildings with thin reserves are sitting longer and negotiating harder. If you know how to read an association's financials, this is one of the best buyer markets Delray has seen in years. If you're selling an older unit, positioning is everything. In fact, many of the same issues affecting older condo buildings are contributing to longer days on market across Palm Beach County, which I cover in more detail in my article Why Homes Aren't Selling in Delray Beach Right Now In 2026 and my video Why Isn't My Home Selling? Do THIS!.
That's the headline. Here's what's actually happening on the ground, and how to use it.
What Changed
For years, a lot of Florida condo boards kept HOA dues artificially low by underfunding reserves. It looked good on paper until something major broke. After Surfside, the state stepped in.
Two rules matter most right now:
Milestone inspections. Buildings three stories or taller get a structural inspection at 30 years old, or 25 years if they're within three miles of the coast. After that, every 10 years. A big slice of downtown Delray's condo stock is right in that age window.
Reserve funding. As of January 1, 2026, associations have to keep enough money set aside for the expensive structural items: roof, load-bearing walls, waterproofing, that kind of thing. The threshold for what has to be reserved jumped from $10,000 to $25,000 per project. Boards can no longer vote to waive these reserves.
The result across South Florida has been a wave of special assessments and higher monthly dues at older buildings. That sounds like bad news, and for unprepared owners it has been. But there's a flip side most headlines skip.If you're trying to determine whether today's condo market presents an opportunity or a risk, it's worth understanding how broader market conditions are impacting buyers and sellers across the area, which I cover further in my article Where to Buy in South Florida in 2025? A Complete Guide and my video Where to Live in Delray Beach in 2025–2026 | New Luxury Communities You Must See
Why This is Quietly Good News for Buyers
Transparency. You now get more of the building's financial story before you commit, and you get seven days instead of three to review condo documents and back out. That extra window is real leverage.
When I walk a buyer through a downtown Delray condo today, we're not just looking at the kitchen. We're reading the reserve study, the inspection report, the assessment history, and the minutes from the last few board meetings. A building that's already funded its reserves and passed its milestone inspection is a safer, cleaner buy than it was three years ago. You know what you're walking into.
And here's the opportunity: plenty of solid older buildings took a short-term hit to dues, which scared off casual buyers and softened prices. For a buyer who understands that a one-time assessment is often cheaper than overpaying for a "cheaper" building that hasn't done the work yet, there's value sitting on the table right now. If you're evaluating a condo as an investment rather than just a primary residence, it's important to understand the long-term income potential and ownership costs, which I cover further in my article Unlocking the Potential: Investing in South Florida Real Estate and my video Seasonal Property in Delray Beach: What Every Buyer Gets WRONG About Rental Income.
What This Means if You're Selling
Delray's condo market is split in two.
Newer, walkable product near Atlantic Avenue is still moving well. Buyers want lock-and-leave convenience and they'll pay for a building they trust. Months of supply across Delray has tightened to about 1.6 months from 2.6 a year ago, so the right unit, priced right, still sells.
Older units are a different conversation. If your building has open assessments or hasn't finished its inspection, buyers will find out, and they'll price it in. The mistake I see sellers make is pretending the financials don't exist and then losing the deal at the document review. The better play is to get ahead of it: have the paperwork organized, know your building's reserve status cold, and price with the assessment in view instead of hoping nobody asks. A well-positioned older condo still sells. A poorly positioned one sits and chases the market down. I cover many of the same issues in my article Why Homes Aren't Selling in Delray Beach Right Now In 2026 and for a deeper look at pricing strategy, read Patience Won't Sell Your Home. Right Pricing Will and watch How To Price My Home to Sell Fast.
Downtown Delray Specifically
Downtown Delray is its own animal. The walkability to Atlantic Avenue, the lifestyle, the lock-and-leave appeal for seasonal owners, none of that changed. What changed is that the buildings themselves are now being judged on their books, not just their location.
That actually plays to Delray's favor over the long run. The buildings that do this right become more valuable because buyers can finally trust them. The shake-out is temporary. The location is permanent. If you're considering Downtown Delray specifically for its walkability, lifestyle, and long-term appeal, I discuss many of those factors in my article Pros and Cons of Living in Delray Beach, Florida: Is It the Right Fit for You? and my video Living in Delray Beach Florida: The Pros & Cons Nobody Talks About.
If you own in a downtown building and you're weighing whether to hold, sell, or ride out an assessment, that's a numbers decision, not a guess. It depends on your building's specific reserve position, your timeline, and what comparable units are doing right now.
Frequently Asked Questions
Does the new condo law apply to all Delray Beach condos?
The milestone inspection requirement applies to condo buildings three stories or taller once they reach 30 years old, or 25 years within three miles of the coast. Reserve funding rules apply broadly to condo associations. Smaller and newer buildings have fewer immediate obligations, but reserve funding still applies.
Should I avoid buying an older Delray condo because of possible assessments?
Not automatically. An older building that has already funded reserves and completed its inspection can be a safer, better-priced buy than a newer building that hasn't. The key is reading the financials before you commit, which the law now gives you more time to do.
I'm selling an older condo. Will the new law hurt my sale?
It depends entirely on your building's financial position and how the listing is handled. Buildings with funded reserves and completed inspections are a selling point. Buildings with open assessments need honest positioning and accurate pricing, not avoidance.
How much have HOA dues gone up?
It varies by building. Some South Florida associations have raised reserve contributions 30 to 40 percent, and surprise special assessments have hit unprepared buildings. Your building's specific numbers are what matter, not the statewide average.
Is now a good time to buy a condo in downtown Delray Beach?
For an informed buyer, yes. Inventory has loosened in parts of the market, some prices have softened on older product, and you have more transparency and a longer review window than at any point in recent years.
Talk it through with a local who reads the financials, not just the finishes
I'm Rachel Williams, a Real Estate Advisor with Compass, helping buyers and sellers across Delray Beach, Boca Raton, Wellington, and Palm Beach County, with a focus on downtown Delray Beach condos and lifestyle properties. If you're trying to figure out whether a specific building is a smart buy, or how to position an older unit so it actually sells, that's exactly what I help clients work through every week.
Reach out for a straight, no-pressure read on your building or your options.
Rachel Williams · Compass · Delray Beach, FL
Rachel Williams is a real estate agent affiliated with Compass. Information is compiled from sources deemed reliable but is subject to errors, omissions, and changes. This is not legal or financial advice. Equal Housing Opportunity.
Rachsellsfl.com | [email protected] | 561.900.5477
