Looking for a More Affordable Home? A Condo Could Be the Answer

When you think about purchasing your first home, you probably envision a single-family house with a backyard, a garage, and enough space to grow into over time. But with housing affordability continuing to challenge buyers, finding a home that checks every box may mean stretching your budget further than you’d like, especially if you’re just getting started.

If the numbers aren’t adding up and a traditional single-family home feels out of reach, there’s another option worth considering: a condo.

In many markets, condos are priced considerably lower than single-family homes, making them a more affordable option and a smart first step toward homeownership.

Condos Could Be a More Affordable Path to Homeownership

According to recent research from Zillow:

“Starter condos may offer a more affordable entry point into the Boston-area housing market. While prices vary by community, our comparison shows that starter condos can be priced below income-based affordability estimates in several nearby cities—potentially making homeownership more attainable for first-time buyers.”

And in some markets, the affordability gap can be even more substantial. Zillow highlighted metro areas where the typical price of a starter condo falls well below what a household earning the median income could reasonably afford. Here are the top 10 markets identified in their research (see chart below).

While housing prices vary from one market to another, the key takeaway is clear: if your home search has focused exclusively on single-family houses, you could be missing out on more budget-friendly opportunities.

And even if your city isn’t among the top 10, that doesn’t mean condos aren’t worth considering. This affordability advantage exists in many markets nationwide, and here’s why.

A Condo Could Be Your First Step Toward Homeownership

One reason condos are often more affordable is simple: they generally offer less square footage than single-family homes. And a smaller living space often comes with a lower purchase price.

If you’re comfortable with a little less room, especially if you’re already living in an apartment, a condo could be an ideal way to enter the housing market. Another advantage? You may not need to spend nearly as much on furniture or decorating. With a potentially lower upfront cost and less space to furnish, you could save money both when you buy and after you move in.

As affordability remains a challenge, more buyers are choosing smaller homes to help keep costs manageable. Ali Wolf, Chief Economist at New Home Source, explains:

“More buyers are embracing smaller homes and becoming increasingly open to attached housing. It’s not necessarily that they prefer sharing walls with neighbors, but rather that they’re prioritizing affordability and getting the most value for their money.”

That’s what it ultimately comes down to. Considering a condo doesn’t mean you’re settling for less. It means exploring a smarter, more affordable path to homeownership that aligns with your budget and helps you take that next step.

Keep Your Options Open to More Affordable Homeownership

If finding a home you love within your budget has been challenging, consider asking your real estate agent to include condos in your search.

You might discover an affordable option in a neighborhood you previously thought was out of reach, enjoy amenities that may not come with a traditional home, or achieve your goal of homeownership sooner instead of waiting until a single-family house fits your budget.

Of course, condos come with certain considerations, including shared walls, limited outdoor space, and HOA fees that add to your monthly expenses. But for many buyers, those trade-offs may be worthwhile if it means getting the keys to a place they can finally call their own.

Another benefit is that many condo communities offer desirable amenities like swimming pools, fitness centers, and shared spaces, while the condo association takes care of certain maintenance responsibilities. If you’re transitioning from apartment living, that added convenience may feel familiar, making the move to homeownership not only more affordable but also easier to manage.

Bottom Line

Your first home doesn’t have to be a traditional single-family house. If affordability has been standing in your way, expanding your search to include condos could open the door to new opportunities. Connect with a local real estate agent to explore your options and find a home that fits your lifestyle, needs, and budget.