Condo vs. house: There are plenty of reasons people pick one over the other — but which fits you best?
My partner, Maria, and I have owned and lived in seven houses and two condos over the last 15 years, and each option had its upsides and downsides.
A few years back we owned a condo in Naples, Florida. I felt uneasy about the steep association fees, so we purchased a house in North Port, Florida.
I quickly grew to dislike the constant yard upkeep and repairs. By the time I finished mowing one side of the lawn, the grass had already gotten longer where I started. So we bought a duplex in Florence, Colorado, and lived on one side for eight months, but that’s a different tale.
Recently we landed in Tucson, Arizona, where we purchased a condo. It’s compact, yet it’s the nicest place we’ve had.
Back to the main question: Should you buy a condo or a house?
I generally think most people should buy a house, even though I currently prefer condo living — it truly depends on your priorities and aspirations. To help you decide, below are benefits and drawbacks of each, along with some of our own experiences.
Why You Should Buy a Condo
Here are several reasons people opt for condos instead of houses.
Condos Usually Cost Less
We paid $55,000 for our Tucson condo, and it included new carpeting, tile and paint. We added a washer, fridge and a bit of patio work for roughly $2,000 more and paid a few hundred in closing fees. There was no way we could have bought a similar house at that price.
Recent data from the National Association of Realtors shows a median sale price of $240,900 for single-family homes in the U.S. versus $225,100 for condos. That figure includes many luxury units and hides larger differences you’ll find in certain markets. For instance, the median house price in Tucson is $193,300 compared with $118,800 for condos.
Here are a few randomly selected cities, with median house price first, then median condo price:
- Madison, Wisconsin: $254,700 vs. $173,800
- Reno, Nevada: $314,400 vs. $169,500
- Tampa, Florida: $205,000 vs. $134,900
- Colorado Springs, Colorado: $264,700 vs. $172,400
- Atlanta, Georgia: $191,500 vs. $168,800
- Syracuse, New York: $137,000 vs. $117,100
Part of this gap is due to the smaller size of many condos. That isn’t necessarily a drawback, though.
Condos Can Bring Lower Monthly Costs
The $390 monthly dues for our Florida condo made it nearly as costly as owning a house, but if you shop smartly, you can find lower monthly expenses with a condo. Our current HOA dues are $145 per month and cover water, sewer and trash, plus exterior upkeep and insurance. The insurance youmustbuy covers only from the interior walls inward (including belongings), so it’s far cheaper than a typical homeowner policy.
In our previous single-family home, water, sewer and trash ran about $105 per month. The average homeowners insurance cost in Arizona is roughly $58 monthly, while we pay only $20, saving us $38. Clearly, our total housing costs are quite low despite HOA dues, and that excludes the savings from not having exterior maintenance or yard care.
Actually, our overall living expenses are lower here than in any of our houses.
We pay cash for our homes now, but if you finance, the largest ongoing saving with a condo can be in borrowing costs. If you pay a lot less for a condo than you would for a house, your mortgage payment on the condo will naturally be much smaller.
Condos Are Easier to Maintain
We chose a one-bedroom condo and love how quickly it takes to vacuum and tidy up. We’d rather spend our time reading, writing or strolling downtown than doing household chores.
It’s not just size — with a condo you don’t repaint or maintain the exterior. Management handles that. There’s no lawn to mow, no mailbox to replace and no shingles to fix. You only manage the interior. Home upkeep is simply less burdensome in a condo.
Amenities Often Come Included
You might not be able to afford a house with a pool and spa, nor want the upkeep, but many condos provide these and other amenities (gym, playground, tennis court) without extra work. We’ve used the hot tub and pool more than 20 times since moving in a few months ago, and I’ll be on the basketball court later today.
Better Locations Are Often Available
Yesterday my partner and I walked downtown for happy hour and rode the bus home. Within walking distance we have multiple parks, three grocery stores, our bank, around 20 restaurants, a hardware store, shoe shop, discount clothing store and more. We never could have afforded a house so close to so many conveniences, which might be the main reason we adore our new place.
If location matters and a house is out of reach in your favorite neighborhood, look at condos for sale.
Why You Might Avoid Buying a Condo
Here are some common reasons people hesitate before choosing a condo over a house.
More Rules and Restrictions
Our Florida condo had a pile of picky rules. You couldn’t back into your parking spot or hang a pool towel out to dry on the patio chair. Rules here are more sensible, though I think we were supposed to get approval before planting potted flowers in our fenced patio.
Know the rules before you buy a condo to prevent surprises. For instance, many Florida condo complexes we saw didn’t allow pickup trucks and had strict pet rules. You don’t want to move in andthenfind you must immediately sell your truck and put the dog on a diet to meet the maximum weight limit.
Storage Space Is Limited
With a small condo (ours is only 675 square feet) you must organize possessions more tightly or simply discard a lot of things (we did both). And if you plan to add storage, check the rules first. Our HOA permits only a 25-square-foot outdoor shed.
No Private Yard
I personally see this as a perk, but some readers cherish that large, green weekend project, and you won’t get that with a condo.
Less Privacy
You’ll be much nearer to neighbors. In our Florida unit, Maria was irritated by a torso-level shower window right next to the walkway between buildings. The sound of high heels clicking on tile above us was also bothersome.
Our compromise in Tucson was to buy an end unit in a single-story complex. We share only one fairly soundproof wall with a neighbor, and the fenced patio has privacy screening.
End units can cost more, but we believe it’s worth a few thousand extra for added privacy. You may enjoy that solitude for years and likely recoup the extra when you sell. The condos offering the most privacy are sometimes farther from the pool, mailbox and parking, so you’ll get more exercise.
Association Fees Are Required
We’ve seen HOAs with dues as high as $750 a month. Thankfully that’s not typical, but even modest dues merit a close look at the HOA budget and other financial records. Large deficits or thin reserves indicate dues could rise soon.
Don’t convince yourself higher dues are justifiable because of amenities unless you’ll actually use them.
Estimate the amenity value based on your habits. The hot tub and pool here are worth at least $25 per month to us, since we used to spend that much visiting pools and hot springs. But most residents never use these facilities, so their value to them is zero.
Special Assessments Are Possible
Occasionally the association’s dues aren’t enough for required repairs or costs. In that case, the HOA may levy a special assessment, which can be an unwelcome surprise.
For example, a neighbor here mentioned a $150 assessment last year to cover unexpected pool repairs. When we lived in Florida, catching up on roof work led to a $600 special assessment per owner.
Once imposed, there’s usually nothing you can do but pay (you’ll typically have a couple months to gather funds). That’s why reviewing condo documents prior to purchase is crucial. Ideally you want solid reserves for unforeseen issues — but if reserves are lacking, at least you’ll be ready for possible surprises.
Mortgage Rates Could Be Higher
A condo mortgage might include an extra charge of 0.75% of the loan amount. Often this is rolled into the loan, effectively raising your interest rate. There are several points to consider, though.
First, the extra fee typically applies only if you borrow more than 75% of the condo’s value. You may have planned a 20% down payment for a house to avoid mortgage insurance, so if you choose a less expensive condo you can likely put down 25% and sidestep the surcharge.
More importantly, if you borrow far less for the condo than you would for the house, your payment will probably be lower even with the additional 0.75% fee, so don’t overthink it.
Lastly, you can avoid the fee even with a smaller down payment by using a VA or FHA loan, provided the condo project meets specific guidelines.
Why You Should Buy a House
For some, a house is simply part of their dream. Here are a few other reasons people pick houses over condos.
Houses Offer More Room
Per census data, the median size of new houses is 2,467 square feet versus 1,408 square feet for new condos. More square footage means more space for belongings and people. I wouldn’t want to squeeze a large family into a condo.
A Yard Is Included
A private yard is uncommon with condos, which is one reason people choose houses. While a yard demands effort, it provides room to play, a place for the dog to run, and it supports the next advantage.
Greater Privacy
You’ll generally have greater privacy with a house than a condo. You don’t share walls with neighbors, and the yard adds distance. You can also increase privacy further thanks to the next point.
More Control Over Your Property
Although some houses are subject to neighborhood rules, you typically have more autonomy. You can expand your home, install a fence, keep the vehicles you prefer, and so on.
In a condo, association rules influenceeverydecision about the property. For example, the corner of the roof on our Florida condo was sagging and rotted, but 14 other roof repairs were ahead in line, so it remained that way for years. If it had been a house, we would have fixed it immediately, but in a condo the choice wasn’t ours.
Other freedoms a house can offer include operating a small home-based business and renting rooms, which is how I paid off my first mortgage.
If we ever buy a house again, a major reason will be to gain more personal control over our living space and lifestyle.
Why You Might Avoid Buying a House
Lastly, here are some reasons you might steer clear of buying a house.
Houses Tend to Cost More Than Condos
NAR data shows that houses cost more than condos in most places. Part of that is size, but even if you want to go smaller, you may not have many house options. We couldn’t find a reasonable 675-square-foot house (the size of our condo) nearby, and if we had, it would still have cost more than the $55,000 we paid.
Higher Upfront Costs for Houses
Because houses are pricier, you also face larger one-time costs like mortgage points and closing fees.
Setting up a house is costlier, too. When we moved from a condo to a house in Florida, I had to buy a lawn mower, weed trimmer, shovel, rake, branch cutter, ladder and many tools I never needed while living in a condo.
Ongoing Expenses Are Higher
If you buy a larger house and spend more, almost all of your recurring costs will be higher. That includes:
- Mortgage payments (bigger loan = larger payments)
- Insurance (higher value = higher premiums)
- Property taxes (higher value = bigger tax bill)
- Maintenance (more items to maintain = greater costs)
- Heating (more space = higher heating costs)
- Electricity (more rooms = more lights and devices = larger bills)
- Water (more landscaping and fixtures = higher water bills)
Houses Require Much More Work
OK, I get it. Some folks love mowing the lawn, painting the garage and cleaning gutters. I don’t.
From our experience, houses demand a lot more work than condos. I’d rather be doing paid work — or just soaking in a hot tub.
Your Turn: Condo vs. house — which do you prefer? Share your thoughts in the comments below.
Alex Mercer is the author of “101 Strange Ways to Make Money” and runs EveryWayToMakeMoney.com. He’s been a repo driver, walking-stick maker, search engine rater, house flipper, tram operator, process server, mock juror, and roulette dealer, but out of the many ways he’s earned money, writing remains his favorite (so far).
