Deed-Restricted Communities Define Florida’s Future, Good or Bad? 7-11-26 Show

Real Estate Matters has been the voice of real estate in Palm Coast and Flagler County, Florida, for more than 12 years.

In Florida, approximately 45% of all residential dwelling units are located within standard homeowners associations (HOAs), representing the highest percentage of any state in the nation. This accounts for roughly 3.8 to 3.9 million homes out of the state’s estimated 8.6 to 8.9 million total residential units.

However, the broader category of deed-restricted or community association housing—which includes not only traditional single-family HOAs but also Condominium Associations (COAs) and housing cooperatives—covers an even larger share of the market.

Watch the Podcast and read the Show Notes below for more details.

---

Be sure to check out the continually updated interactive Flagler County Map of Developments and Subdivisions.

Raw Show Notes

Our behind-the-scenes guide to the show’s flow, including topics we didn’t have time to get to on the show. This is raw and likely contains typos. Data reflects the date of the show’s recording.

Show Notes for 7-11-2026

Recorded 7-9-2026

Welcome to the tranquil side of Florida. This is Real Estate Matters, the voice of real estate in Flagler County and Palm Coast for more than 12 years.

I’m Toby Tobin, publisher of the real estate news website GoToby.com, and a Florida-licensed Realtor with Grand Living Realty. I’m joined by Co-host Annamaria Long from the Flagler Homebuilders Association, one of our sponsors.

Thanks to Our Sponsors:

• Flagler County Home Builders Association
• Hammock Community Church – On A1A in The Hammock – Small enough to know you but large enough to serve you. North of the toll bridge with the message sign out front. It’s not just for Hammockians. Like me, many people cross the bridge.

Guest: None

In Florida, approximately 45% of all residential dwelling units are located within standard homeowners associations (HOAs), representing the highest percentage of any state in the nation. This accounts for roughly 3.8 to 3.9 million homes out of the state’s estimated 8.6 to 8.9 million total residential units.

However, the broader category of deed-restricted or community association housing—which includes not only traditional single-family HOAs but also Condominium Associations (COAs) and housing cooperatives—covers an even larger share of the market:

• The Condo Factor: Florida is home to more than 1.5 million individual condominium units (governed by over 27,000 condo associations).
• The Total Share: When factoring in both traditional HOAs and condominium/co-op units, a combined 55% to 60% of Florida’s residential housing stock is subject to some form of deed restriction or mandatory community association governance.
• New Construction: This trend is accelerating. Data from recent years indicate that between 70% and 80% of newly constructed for-sale residential units in Florida are located within a deed-restricted community association.

In terms of population, roughly 9.6 million Floridians live within these managed communities, relying on associations to handle neighborhood covenants, architectural controls, and shared infrastructure.

CDD’s

Community Development Districts (CDDs) in Florida are experiencing a massive, parallel surge. In fact, their growth rate over the last few years has arguably outpaced standard residential development.

Data shows that Florida has over 1,060 active CDDs—a dramatic spike of more than 50% since 2020.

This explosive growth is driven by the exact same shift accelerating deed-restricted communities: the rise of massive, master-planned developments in inland suburban growth corridors (like Polk, Pasco, and parts of Central Florida) designed to capture the state’s massive population influx.

The expansion of CDDs highlights several distinct real estate and infrastructure trends:

1. Shift to Massive Master-Planned Communities

Local municipalities and counties are increasingly unable—or unwilling—to fund the massive upfront infrastructure required for thousands of new homes. CDDs allow mega-developers to issue tax-exempt municipal bonds to pay for grading, major roads, water/sewer extensions, and master utility systems. This structure is essential for the sprawling “live, work, play” lifestyle communities currently favored by buyers, such as the major expansions in Lakewood Ranch, the multi-district layout of The Villages, and new megaprojects in the Tampa-to-Orlando corridor.

2. The Relationship Between CDDs and HOAs

It is common for these two entities to overlap. In modern Florida master-planned communities, they typically function as a dual layer:

• The CDD manages and finances the heavy public infrastructure (roads, retention ponds, street lighting, main thoroughfares, and often major recreation centers).
• The HOA handles the traditional deed-restriction enforcement (architectural reviews, lawn maintenance standards, trash rules) and smaller, neighborhood-specific gates or common areas.

3. A Strategic Risk Shift for Developers

By establishing a CDD, a developer effectively shifts the long-term debt burden for community infrastructure off their balance sheet and onto property titles. For the homebuyer, this translates into a permanent (or 20- to 30-year) non-ad valorem assessment on their annual tax bill.

With capital and traditional commercial construction financing remaining selective and highly scrutinized, developers are relying heavily on the CDD model to make large-scale residential projects financially viable.

June final stats (as of 7-9)

• 329 homes sold at a median price of $ 365,000 vs. 257 at $358,445. DOM=43 vs 52 one year ago.
• <$250K – 8 sold, 5 for cash, DOM = 25
• $1M+ – 15 sold, 8 for cash, DOM = 38
• Listings – 1146 vs1438 – DOM = 73 vs 80
• Pending – 343 vs 294 – DOM – 53 vs 62
• GINNdex – 3.34 vs 4.89
• Median list price of pending sales – $379.990

State of the market

• Home sales are up. July set a record in both homes sold and total sales volume.
• Prices are stable, hovering around $365K since the COVID peak
• Listings are down
• Pending sales are up.
• DOM are down.
• New building permits are down (for the second year in a row).

So, why are people saying this:

• The market is flooded with unsold inventory.
• New construction is rampant
• Watch out for a repeat of the Great Recession

What are we missing?

Median selling price is not a reliable measure of market values. It’s heavily influenced by the mix of market segments, making it possible to see market prices drop while the median price stays the same or rises.

Builders and sellers of existing homes make concessions in negotiations that do not appear in final sales reporting or even on the deed. Anecdotally, current builder concessions often total tens of thousands of dollars.

Wrap-up:

Video podcasts of Real Estate Matters are available on GoToby.com. Click on Podcasts on the top navigation bar. Show notes are included so you can see what we didn’t get to on the show. Also, on GoToby.com, the Flagler County Interactive map of residential developments and subdivisions is updated regularly. Currently viewed over 11,000 times.

Let me be your consultant at no additional cost to you. 

Owners’ associations and Florida’s property tax system are often misunderstood by buyers and sellers, leading to undesired outcomes. I have served on homeowner and condo association boards and a CDD commission. I understand the world of deed-restricted communities. I also served for more than ten years on the Flagler County Value Adjustment Board.

If you are thinking about buying or selling property in Flagler County, call me first. I’ll introduce you to a highly qualified agent or builder and serve as your consultant throughout the transaction at no additional cost. Call me at 386-931-7124 or email me at Toby@GoToby.com.