Priced Out of a House? A Condo or Townhome Could Be Your Best Move

With today's home prices, many buyers—especially first-time buyers—are wondering if homeownership is still within reach. The good news is that it may be more attainable than you think. In many cases, it simply means exploring a different type of property.

Condos and townhomes can offer a more affordable path to ownership without pushing your budget to the limit. And in today's market, there are two big reasons they're worth considering.

There Are More Condos and Townhomes Available

Maybe it feels like you've already looked at everything within your budget and still haven't found the right home. But have you considered a condo or townhome? Many buyers focus only on detached single-family homes, not realizing they're overlooking a large portion of the market.

According to HousingWire Data, 233,030 condos and townhomes were listed for sale this June—the highest June inventory in at least the past decade and more than double the number available in 2022 (see graph below).

More inventory means buyers have a wider selection to choose from—especially those purchasing their first home. Condos and townhomes can provide an affordable entry point into homeownership without stretching your budget.

Keep in mind these are national figures, so inventory will vary by location. Even so, a larger selection generally means less competition, more time to weigh your options, and greater negotiating power when you find the right home.

They’re Often More Affordable Than Single-Family Homes

Affordability is another major advantage. According to the National Association of Realtors (NAR), the median price of a condo was $380,000 in June, compared to $446,400 for a single-family home (see graph below).

That's more than a $66,000 difference in median price.

One reason condos and townhomes are more affordable is that they're typically smaller than single-family homes. Less square footage often translates to a lower purchase price.

And if you don't need the extra space, that lower cost could make homeownership much more attainable.

Condo or Townhome: Which One Is Right for You?

If buying a home feels out of reach, a condo or townhome could be the opportunity you've been looking for. Before you begin your search, it's helpful to understand how these two options differ from each other—and from a traditional single-family home.

• With a single-family home, you own both the house and the land it sits on, with no shared walls between you and your neighbors. That typically means the most privacy and living space. The tradeoff is a higher purchase price, along with full responsibility for maintenance, repairs, and landscaping.
• With a townhome, you generally own both the home and the land beneath it. Most townhomes have multiple levels, offering more living space than many condos, while sharing one or two walls with neighboring homes. You'll have greater control over your property and maintenance decisions, but you'll also be responsible for more of the upkeep.
• With a condominium, you own the interior of your unit, while the building's exterior and common areas are shared among all owners. Many condo communities include amenities such as pools, fitness centers, or clubhouses. Because the homeowners association (HOA) maintains the exterior and shared spaces, day-to-day maintenance is often much lower. In return, you'll typically have HOA fees, more nearby neighbors, and less control over decisions affecting the building and common areas.

Bottom Line

Homeownership may be closer than you think. A condo or townhome can offer an affordable way to get into the market without stretching your finances. An experienced local real estate agent can help you compare your options and find the right fit.