If you’re weighing a condo vs. single-family home in Fort Lauderdale or Hollywood, you’re really asking two questions at once: which asset type best matches your risk/return profile, and which submarket gives you the cleaner path to income and appreciation. Both cities sit in Broward County, share the same insurance and regulatory headwinds, and yet behave differently when it comes to price tiers, rental demand, and exit liquidity. Here’s how the numbers, and the nuance, shake out.
Market Snapshot: Fort Lauderdale vs. Hollywood
Price Tiers And Inventory Dynamics
Fort Lauderdale typically commands a premium. Downtown/Flagler Village, Victoria Park, Coral Ridge, and the beach-adjacent pockets push values higher, especially for newer condos with amenities and renovated single-family homes east of US‑1. Hollywood runs more affordable, think Hollywood Hills, east-of‑US‑1 cottages, and west-of‑I‑95 subdivisions with broader inventory and lower price per square foot. For investors, that means lower entry costs and often higher nominal cap rates in Hollywood, but stronger rent ceilings and exit depth in Fort Lauderdale.
Inventory patterns diverge as well. Fort Lauderdale sees steady in-migration of remote workers and higher-earning tenants, supporting Class A rentals and amenity-heavy condos. Hollywood offers a mix of workforce housing, snowbird demand, and beach-proximate condos that skew older. Days on market tend to compress faster in Fort Lauderdale for turnkey product, while Hollywood offers more “value-add” opportunities if you’re willing to renovate.
New Supply Pipeline And Redevelopment
Fort Lauderdale’s pipeline leans urban: high-rise condos and multifamily towers downtown and along the river. Newer product supports higher rents but can pressure lease-ups for older buildings. Hollywood’s new supply is thinner and more targeted, hotel/condo-hotel near the Broadwalk, selective mid-rises, and redevelopment east of US‑1. Less new supply can help stabilize rents for existing stock, but older buildings must navigate Florida’s post‑Surfside rules, which directly affect carrying costs and, by extension, returns.
Purchase Price And Carrying Costs: How The Numbers Stack Up
HOA Dues, Reserves, And Special Assessments
Condos trade at lower sticker prices than comparable east-side single-family homes, but the HOA line item is the equalizer. After Florida’s 2022–2023 condo safety laws (SB 4D and SB 154), 3‑story-and-up buildings face milestone inspections and mandatory reserve funding, especially within three miles of the coast. Translation: dues are rising, and deferred-maintenance buildings are seeing special assessments. Fort Lauderdale’s newer towers already priced in robust reserves: older Hollywood high-rises can look cheap on the MLS but carry unpredictable assessment risk. Your underwriting needs a reserve for surprises, and you should read the last two years of board minutes and engineering reports before you fall in love with a low list price.
Insurance, Wind Mitigation, And Flood Considerations
Florida property insurance has been volatile, and coastal risk pricing hasn’t softened much. Single-family homes require their own wind and hazard policies: condos push most of that to the association’s master policy, though you’ll still carry an HO‑6 and sometimes a separate wind/flood endorsement depending on the building. Wind mitigation features, impact windows, reinforced roof-to-wall connections, newer roofs, meaningfully reduce premiums on houses. Flood risk is hyperlocal: east-of‑US‑1 and near waterways can fall into higher-risk flood zones, raising NFIP or private-flood premiums. Fort Lauderdale parcels near canals or the Intracoastal often show higher flood costs than comparable Hollywood interiors west of I‑95, but beach-proximate Hollywood condos face the same storm surge math as Fort Lauderdale Beach.
Property Taxes, Maintenance, And Turnover Costs
Taxes reset on sale in Florida, so your pro forma should use today’s millage and purchase price, not the seller’s homesteaded bill. Houses bring ongoing capex, roof, HVAC, plumbing, landscaping, plus make-ready costs between tenants. Condos shift much of the exterior upkeep to the HOA, smoothing cash flow until a large assessment hits. Turnover is typically easier in condo buildings with on-site management, but some associations impose approval timelines and move-in fees that can extend vacancy. In Fort Lauderdale, single-family homes in desirable school zones or near downtown can command higher deposits and longer lease terms, which helps reduce churn.
Rental Demand And Income Potential
Long-Term Rentals: Tenant Profiles And Demand Drivers
Fort Lauderdale pulls professionals tied to healthcare, marine, aviation, and a growing tech/finance back-office scene. That supports 12‑month leases at healthy rents, especially for renovated homes and Class A condos. Hollywood’s long-term demand is a blend of local workforce tenants, retirees, and seasonal workers, with solid absorption for well-priced homes west of I‑95 and charming cottages east of US‑1. In both markets, proximity to the beach, downtown nodes, Brightline access, and parking drive your rent ceiling.
Short-Term And Mid-Term Rentals: Rules, Fees, And Seasonality
You can’t underwrite short-term rentals on wishful thinking. City and HOA rules come first. Fort Lauderdale allows vacation rentals by right in certain zoning districts with registration, inspections, and taxes: many condo associations still prohibit less than 30‑ or 90‑day stays. Hollywood is stricter near the beach, with defined hotel districts and active enforcement. Mid‑term (30–180 day) furnished rentals, travel nurses, corporate, insurance claims, often slide under condo minimums and avoid the regulatory heat of nightly stays. Seasonality peaks January–April: off-season pricing should be realistic, or your cash-on-cash will be a mirage.
Returns Framework: Cap Rate, Cash-On-Cash, And Total Return
Underwriting Assumptions And Sensitivity Testing
Start with a clean, conservative pro forma. For condos, include HOA dues, projected increases, and a contingency for assessments. For houses, add a realistic capital reserve for systems and a roof timeline. Use market rents that reflect current concessions and seasonality rather than peak-season asks. Then stress-test: raise insurance and HOA by 10–20%, nudge vacancy to 7–8%, and model a slower rent growth path. If returns fall apart with modest shocks, the deal isn’t durable.
Cap rate tells you in-place yield before financing, but cash-on-cash brings debt and reserves into focus. In Broward today, stabilized long-term rentals for solid assets often pencil in the mid‑4s to low‑6s cap range for Fort Lauderdale condos, slightly higher for Hollywood condos with older vintage risk. Single-family homes may show similar caps on paper, but better cash-on-cash if you capture lower insurance via wind mitigation and keep maintenance under control.
Appreciation, Deleveraging, And Tax Considerations
Total return in these submarkets has historically leaned on appreciation, land-constrained, lifestyle-driven demand helps. Houses on larger lots east of US‑1 in both cities tend to appreciate faster than commodity condos, though marquee condo towers in Fort Lauderdale can buck that rule. Amortizing loans (even at today’s rates) add a quiet boost as principal is paid down. On taxes, Florida’s lack of a state income tax helps, and federal benefits, depreciation, bonus depreciation on certain components, and 1031 exchanges, tilt the scales. Just remember: condo special assessments aren’t all immediately deductible: talk to your CPA before you bank on it.
Risk Factors You Can’t Ignore
Regulatory Landscape And Rental Restrictions
The fastest way to wreck returns is to buy first and read rules later. City registration, Broward tourist taxes, and HOA bylaws can limit rental terms, caps on the number of units rented at once, and guest approvals. Hollywood’s enforcement on the beach is no joke. Fort Lauderdale is business-friendly but still fines noncompliant operators. Always confirm in writing what you can do with the unit.
Building Age, Recertification, And Structural Risk
Post‑Surfside, milestone inspections and structural-reserve studies are non-negotiable. Buildings around 30–40 years old, common along the coast, are entering heavy repair cycles. Assessments can run five figures per unit, or more. You want engineering reports, reserve schedules, and project timelines in hand. For single-family homes, structural risk shifts to roof age, elevation, drainage, and prior permits. A 2005 house with impact glass can outperform a 1960s cottage with a tired shingle roof, even if the latter sits closer to the sand.
Liquidity, Financing, And Exit Timelines
Condos live and die by warrantability. High investor concentration, litigation, or low reserves can spook lenders, shrinking the buyer pool and dragging values. Single-family homes are usually simpler to finance and exit. In a slower market, Fort Lauderdale’s deeper buyer base helps condos and houses move faster than comparable Hollywood assets, but price it right or be ready to carry for a while.
Case Comparisons: What Performs Best And Where
Fort Lauderdale Condo: Urban, Amenity-Heavy Building
Think Flagler Village or a newer tower near Las Olas. Purchase price sits higher, but you’ll see strong renter demand from professionals who want walkability and amenities. HOA dues are significant, yet predictable if reserves are healthy. Cap rates often land in the mid‑4s to low‑5s, with better risk-adjusted stability and an easy exit if the building is financeable. Short-term rental upside is usually blocked: mid-term can work with corporate tenants.
Fort Lauderdale Single-Family: Neighborhood Home Near The Beach Or Downtown
A renovated 3/2 east of US‑1 or close to downtown can command top-tier rents, with insurance moderated by impact windows and a newer roof. Your maintenance budget needs to be real, but turnover’s low if you screen well. Cash-on-cash can beat condos because you’re not writing HOA checks, and appreciation potential is strong due to land scarcity. Flood and wind exposure must be quantified, get mitigation credits and an elevation certificate before you bind.
Hollywood Condo: Beach-Proximate Mid-Rise Or High-Rise
Entry price is lower than Fort Lauderdale Beach, which makes the pro forma look sweet. The catch is building age. If the association is under-reserved or facing concrete restoration, your yield can disappear. Long-term tenants are plentiful at the right price point, and mid-term seasonal demand is reliable near the Broadwalk. If you vet the building and budget for rising dues, you can still land a respectable yield with a bigger margin of safety than you’ll find on the Fort Lauderdale beachfront.
Hollywood Single-Family: East Of US-1 vs. West Of I-95
East-of‑US‑1 cottages offer charm, walkability, and appreciation potential as nearby redevelopment marches on. Insurance and flood considerations apply, but the smaller footprint can keep premiums in check. West of I‑95, you get scale: stable, year-round tenant demand, easier parking, and simpler management. Rents are lower, yes, but so are your taxes and acquisition costs. For pure yield, clean houses west of I‑95 with solid wind mitigation can deliver the steadiest cash-on-cash in Hollywood.
Investment Playbooks By Investor Profile
Yield-Focused Buyers
If cash flow today matters most, you’ll likely gravitate to Hollywood single-family west of I‑95 or well-managed, non-luxury condos with transparent reserves. Aim for functional layouts, low vacancy risk, and no speculative rent growth to make the numbers work.
Appreciation-Oriented Buyers
You’re buying land, location, and scarcity. Fort Lauderdale single-family east of US‑1, or prime downtown-adjacent homes with modernization, give you multiple exits and stronger resale dynamics. Select Fort Lauderdale condos in marquee buildings can also appreciate well, but diligence on HOA health is everything.
Hybrid And House-Hack Strategies
Live in one unit and rent another, or buy a small home with an accessory suite. Mid-term furnished plays near hospitals, the airport, Port Everglades, or downtown nodes can smooth seasonality. In condos, look for buildings that permit 90‑day minimums so you can capture winter rates without nightly turnover.
Conclusion
Both Fort Lauderdale and Hollywood can work, your edge comes from matching the asset to the submarket and underwriting like a skeptic. Condos offer lower entry prices and simpler exterior maintenance but carry HOA and assessment risk. Single-family homes demand more hands-on upkeep but deliver better control over expenses and, often, stronger cash-on-cash with superior long-run appreciation east of US‑1. If you validate rental rules, pressure-test insurance and HOA assumptions, and buy with exit liquidity in mind, you’ll tilt the balance toward the kind of returns you can actually keep.
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