Palm Beach sunshine is calling, but should you buy a condo or a single-family home? The right choice depends on how you plan to live, what rules you can live with, and how you feel about maintenance, insurance, and resale. In this guide, you’ll compare lifestyle perks with practical factors like financing, association health, and flood risk so you can decide with confidence. Let’s dive in.
Palm Beach market snapshot
As of mid 2025, local association reports show single-family homes in Palm Beach County have generally been holding value better and moving faster than condos. Condos and townhomes carried higher months supply and longer market times in several recent reports, which can give buyers more negotiating leverage in that segment. Review the latest county snapshot from MIAMI REALTORS before you write an offer (recent county update).
Palm Beach County also sees a high share of all-cash transactions. In many months of 2025, roughly half of closed sales were cash, with an especially large cash share in the condo market. That can shape negotiation dynamics and timing for financed buyers (cash share context).
What this means for you: if you want a low-maintenance beach lifestyle and price flexibility, a condo may open more choices and negotiating room. If you want privacy, land, and long-term scarcity, a single-family home can be the tighter market and a resilient hold in many neighborhoods.
Condo vs. house: lifestyle trade-offs
Privacy and space
If you value lot privacy, larger garages, guest suites, or a private pool, a single-family home often wins. Estate neighborhoods on Palm Beach island and select mainland communities are designed to preserve that scale and privacy. Always confirm neighborhood zoning and design-review rules with the municipality.
Maintenance and time
Condos centralize exterior upkeep into HOA dues. Landscaping, building exteriors, elevators, security, and common-area amenities are usually handled, which creates a true lock-and-leave rhythm for second-home owners. With a single-family home, you are responsible for roof, exterior systems, landscaping, and any dock or seawall care.
Amenities and rules
Full-service buildings often feel like a boutique resort, with concierge service, valet, fitness, and on-site management. In exchange, you accept building rules on renovations, decor, parking, pets, guests, and rentals. A house gives you more control, but you take on more planning and vendor management.
Water access and storage
If you need a private dock, multiple vehicle bays, or room for larger toys, a single-family property on the Intracoastal or canals is often the realistic path. Some condo communities offer assigned or deeded slips, but you should confirm transferability and rights in the recorded condo documents.
Rentals and usage rules to know first
If seasonal rental income or guest flexibility matters, check municipal code and association bylaws early. On Palm Beach island, the town’s public FAQ makes clear that short-term rentals are not allowed in residential districts, and single-family homes cannot be rented more than three times per calendar year (Town of Palm Beach rental FAQ).
Florida state law also preempts some local vacation-rental bans that came after June 1, 2011, but ordinances on or before that date were grandfathered. That means rules vary sharply by city across the county. Always verify the current code where you plan to buy (Florida preemption background).
Financing and building health: what to check
Condo safety, reserve studies, and special assessments
Following the Surfside tragedy, Florida requires milestone inspections and Structural Integrity Reserve Studies for many condo buildings three stories or higher. Associations must disclose results and fund reserves based on those studies. For buyers, this can affect dues and trigger special assessments if major work is needed. Ask for completed milestone and SIRS reports, the timeline for any remedial work, and how it will be funded (Florida Statute 718.112).
Warrantable status and loan options
Conventional financing depends on condo project eligibility. If a building is warrantable under Fannie Mae or Freddie Mac standards, you typically have broader conventional loan access. If it is non-warrantable, expect a larger down payment or portfolio/jumbo options. Your lender will run a project review and rely on association documents, so request them early (Fannie Mae project eligibility).
FHA approvals
FHA loans require the condo project to be on HUD’s approved list or to qualify for Single-Unit Approval. South Florida historically has a limited number of FHA-approved condo buildings, which narrows options for FHA borrowers. Confirm eligibility at the start of your search (HUD condo lookup).
Association financial health
Before you make an offer, review audited financials, current budgets, reserve studies, the master insurance policy, and recent board minutes. Low reserves, deferred maintenance, pending litigation, or high wind deductibles can impact your monthly costs and resale timeline.
Insurance, wind, and flood realities
Coastal Palm Beach properties face elevated wind and flood exposure. Use FEMA and NOAA tools to understand flood zones, elevation, and sea-level rise when you underwrite a purchase (NOAA Sea Level Rise Viewer). Lenders often require flood insurance in special flood hazard areas, and premiums depend on property-specific risk.
Florida’s homeowners insurance market has seen volatility in recent years, including rate pressure and insurer exits. That can raise operating costs and influence availability of coverage. Get quotes early and ask how renewals are trending for the property type you are considering (market dynamics overview).
Which option fits you? Four buyer scenarios
Scenario A: Privacy and room for everything
You want space for guests or staff, a car collection, and a dock. A single-family estate on Palm Beach island or a gated mainland community likely fits. Trade-offs include more direct maintenance, higher potential insurance costs, and municipal rules for shoreline or historic review in specific neighborhoods.
Scenario B: Seasonal lock-and-leave living
You plan to spend part of the year in South Florida and want ocean access, amenities, and on-site management. A full-service condo in West Palm Beach, Boca Raton, or Delray Beach offers low daily upkeep. Trade-offs include HOA dues, building rules, and the need to verify SIRS and reserve funding, especially in older towers.
Scenario C: Short-term rental income matters
You hope to rent when not in residence. Start by confirming city rules, then check HOA bylaws for minimum lease terms and caps. On Palm Beach island, short-term rentals are prohibited in residential districts and single-family rentals are limited by frequency, so confirm the code before you tour.
Scenario D: You want conventional financing
You need predictable loan options. Focus on warrantable condo projects or consider a single-family home that underwrites more directly. Ask for the building’s lending status and documentation early to avoid surprises.
Buyer checklist: request these in escrow
- Condo and HOA packet: current budget, audited financials, reserve study, last 12 months of board minutes, and the master insurance policy. Confirm wind and flood deductibles and recent assessment history.
- SIRS and milestone compliance: if the building is three stories or higher, request completed reports, any engineer letters, project bids, funding plans, and a timeline for work (statutory framework).
- Project lending status: Fannie Mae or Freddie Mac eligibility, and whether FHA approval or Single-Unit Approval is available (Fannie Mae guide, HUD lookup).
- Municipal rules: rental terms, parking, and shoreline or dock permitting where relevant. Palm Beach island buyers should review the town’s rental FAQ for clarity (Town FAQ).
- Insurance pre-check: homeowners and flood quotes, likely renewal trajectory, and whether the condo’s master policy wind deductibles could translate to owner assessments. Cross-check flood exposure using NOAA tools (NOAA SLR Viewer).
Bottom line
If you want low-maintenance living with amenities and staff-level service, a luxury condo can be an easy “yes” as long as the association’s reserves, inspections, and lending profile pass muster. If you prioritize privacy, land, and control, a single-family estate can deliver a rarehold asset with strong lifestyle value. In either case, your best move is to verify rules, building health, lending paths, and insurance early so your offer is both strong and well protected.
Thinking about your next move in Palm Beach, West Palm Beach, Boca Raton, or Delray Beach? Let’s tailor this decision to your goals and timing. Reach out to The South Ocean Group to compare neighborhoods, shortlist buildings and communities, and put a plan in motion.
FAQs
Is it harder to finance a condo in Palm Beach County?
- It can be if the building is non-warrantable or not FHA approved, so ask your lender to check project eligibility early and build your offer timeline around that review.
What do condo HOA dues typically cover in South Florida?
- Dues often include exterior maintenance, landscaping, building insurance for common areas, amenities, and on-site management, but coverage varies so review the budget and master policy.
Can I rent out a Palm Beach island home seasonally?
- The Town of Palm Beach restricts short-term rentals in residential districts and limits single-family rental frequency, so verify current rules before you buy.
How do flood zones affect ownership costs?
- Homes in special flood hazard areas often require flood insurance, and premiums depend on elevation and property-specific risk, so get quotes before you commit.
What documents should I see before buying a condo?
- Ask for the budget, audited financials, reserve study, recent board minutes, insurance declarations, and any SIRS or milestone reports that show building health and funding plans.
