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The Worst U.S. Condo Markets Collapsing Condos

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By Amanda Zusman

The Worst U.S. Condo Markets Collapsing Condos

After years of high demand, condominium prices across the U.S. have plunged, and with financial markets in disarray, sales are likely to keep falling. That portends even lower prices ahead, as vacant units compete with new developments still coming onto the market.

Many of today’s worst markets are the same ones that were doing great during the housing boom from 2003 to 2006. Half of the 12 cities with the steepest price declines are in California, while three of the five worst are in Florida. And both of the nation’s largest cities—New York and Los Angeles—make the Worst 20 list.

"It’s classic microeconomics of supply and demand," says Richard Swerdlow, chief executive and founder of Condo.com in Coconut Grove, Fla. "In a lot of these markets, there was massive over-development."

Among markets of 500,000 or more, here are the 20 worst when it comes to tumbling prices. Data are provided by Brookfield (Wis.)-based Fiserv.