Today's home prices have a lot of buyers – especially first-time buyers – wondering if there’s even anything out there that’s in their budget. But owning a home may be more within reach than you think. Sometimes, it just means considering a different type of home.
Condos and townhomes can be a great way to buy without stretching every last dollar. And right now, two things make them worth a serious look.
There Are More Condos and Townhomes To Choose From
Maybe you feel like there’s just nothing out there for you, and you’ve exhausted all your options. But have you considered condos or townhomes? A lot of buyers start by looking for a single-family, detached home without even realizing what that search omits from their pool of choices.
According to HousingWire Data, there were 233,030 condos and townhomes for sale this June. That's more than any June in at least the past decade, and more than double the number available back in 2022 (see graph below):
That means there are more options out there in this segment of the market – and that’s especially good news for first-time buyers. These types of homes can be a great way to break into the market for less.
Just remember, that's the national number. What's available will depend on where you're looking. But generally speaking, more options means less competition, more time to decide, and more room to negotiate.
They Also Tend To Cost Less Than Single-Family Homes
Price is the other big draw. According to the National Association of Realtors (NAR), the median condo price was $380,000 in June. In contrast, the median single-family home price was $446,400 (see graph below):
That's a difference of more than $66,000.
A big reason why? Condos are usually smaller than single-family homes. And smaller homes can come with smaller price tags.
And if you don't need all that extra space, that lower entry price could be exactly what gets you through the door.
Condo or Townhome? How They’re Different.
For buyers who feel priced out of the market, a condo or townhome could be a way in. But there are some things to know. Before you start checking out homes, it’s good to understand how these two compare to each other – and to a single-family home.
With a single-family detached home, you own the house and the land it sits on, and you don’t share any walls with neighbors. That means the most space and privacy. But it also usually comes with a higher tag, and all the maintenance is on you.
With a townhome, you own the building and the lot it sits on. They're usually multi-level, so you get more space, and you share two walls at most. You'll also have more say over how your home looks and how repairs get done, but more of that upkeep falls on you.
With a condo, you own just the inside of your unit and may have access to community features like a pool or gym. The building and shared space belong to everyone who lives there, which means you have less maintenance responsibilities. But you’ll also likely have more neighbors around you, less control over building decisions, and higher HOA fees since the HOA handles the exterior and common areas.
Bottom Line
A condo or townhome could be your path to owning a home without blowing your budget. Let’s connect to see what's for sale in our area and figure out which type of home fits your lifestyle, and your bottom line.
Frequently Asked Questions About Condos and Townhomes
Are condos and townhomes more affordable than single-family homes?
They often are. Condos and townhomes are typically smaller than detached single-family homes and may require less land, which can result in a lower purchase price. This lower entry cost may help first-time buyers purchase sooner without exceeding their budget.
What is the main difference between a condo and a townhome?
With a condo, you generally own the interior of your individual unit while sharing ownership of the building’s common areas. With a townhome, you typically own both the structure and the land beneath it. Townhomes may offer more space and privacy, while condos often require less exterior maintenance.
Are condos a good choice for first-time homebuyers?
Condos can be an excellent option for first-time buyers because they may offer a more affordable purchase price, shared amenities and reduced exterior maintenance. Buyers should still carefully review the condominium association’s finances, rules, insurance coverage and monthly fees before purchasing.
Do condos and townhomes have HOA fees?
Most condos and many townhomes are part of a homeowners association. HOA fees may cover services such as exterior maintenance, landscaping, building insurance, security, amenities and common-area repairs. Buyers should include these fees when calculating their total monthly housing costs.
Can HOA fees increase over time?
Yes. HOA fees can increase as insurance premiums, maintenance expenses and operating costs rise. Associations may also charge special assessments when major repairs are needed and the reserve fund does not have enough money to cover them.
Are condos and townhomes easier to maintain?
Condos generally require less exterior maintenance because the association usually handles the building exterior and shared spaces. Townhome owners may be responsible for more maintenance, depending on the community’s governing documents. Buyers should confirm exactly what the association maintains before making an offer.
Is it harder to finance a condo?
Condo financing can involve additional requirements because the lender may evaluate both the buyer and the condominium association. The lender may review the association’s insurance, finances, owner-occupancy levels, reserve funds and pending litigation. Working with a lender who regularly handles condo loans can make the process easier.
Do condos and townhomes offer less privacy?
They can. Condo owners may have neighbors above, below or beside them, while townhome owners usually share one or two walls. Buyers who value privacy should consider the unit’s location, construction quality, soundproofing and proximity to common areas.
What should I review before buying a condo or townhome?
Review the HOA budget, reserve funds, meeting minutes, insurance coverage, community rules, monthly fees and history of special assessments. You should also determine which repairs are the owner’s responsibility and whether there are restrictions involving pets, parking, leasing or renovations.
Can I negotiate the price of a condo or townhome?
Yes. When inventory is higher and competition is lower, buyers may have more negotiating leverage. Depending on the property and local market, you may be able to negotiate the purchase price, closing costs, repairs or other contract terms.
Are condos and townhomes good long-term investments?
They can be, especially when located in desirable areas with financially stable associations and well-maintained common areas. Resale value can be influenced by location, HOA management, monthly fees, building condition, amenities and the number of similar units available.
How do I decide which property type is right for me?
Consider your budget, desired amount of space, privacy needs, maintenance preferences and lifestyle. A condo may work well for someone seeking convenience and minimal upkeep, while a townhome may appeal to a buyer who wants more space and ownership control without the price of a detached home.
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