In most metros, the choice for city buyers comes down to a condo close to everything or a house with more space a little further out. Neither is automatically better. Here are seven things to compare.
1. Purchase price
Condos usually cost less than single-family homes in the same area, which can make them the realistic entry point in expensive metros. Check current medians on our metro prices page before deciding which type fits your budget.
2. HOA fees
Most condos charge monthly homeowners' association (HOA) fees that cover building maintenance, insurance for shared areas and amenities. Add the fee to your monthly payment when you compare — a cheaper condo with a high HOA can cost more each month than a house.
3. Maintenance and repairs
With a condo, the association handles the roof, exterior and common areas. With a house, every repair is yours. Ask any condo association about its reserve fund and whether special assessments are planned.
4. Space and privacy
Houses typically offer more square footage, outdoor space and fewer shared walls. Condos trade that for location, convenience and often building amenities.
5. Financing
Some loan programs have extra rules for condos, such as approval of the building or limits on how many units are rented out. Ask your lender early if you are looking at condos.
6. Rules and restrictions
HOAs set rules on renting your unit, pets, renovations and noise. Read the bylaws before you make an offer, especially if you might rent the unit out later.
7. Resale and long-term plans
Think about how long you will stay. A condo can suit a first purchase or a few years in the city; a house may fit better if you expect your household to grow.
Not sure what you can afford? Start with our 28% rule guide, then tell us what you are looking for.