Condos are a good entry point for first-time buyers, according to Nicole Rueth, a mortgage lender in Colorado, especially for those buying in big cities where prices are high and there's a limited supply of housing options.
But experts warn condos aren't a perfect solution.
"It’s a trade-off: affordability and simplicity, but a little less freedom," said Michael Branson, CEO of mortgage lender All Reverse Mortgage.
Pros of owning a condo
Entry can be more accessible. Condos are often more affordable than single-family houses, so they can offer first-time buyers an easier path to homeownership, according to Rueth.
As of March 2025, the median price of a single-family home was $408,000, while the median cost of a condo was $363,000, according to data from the National Association of Realtors.
You are responsible only for your unit. Maintaining a condo can sometimes be easier than keeping up with an entire house. There's no lawn to mow, no garden to plant.
You can build equity. "A condo still provides an asset and you're building wealth," she said.
You have access to amenities. Condo buildings can also offer amenities — such as a gym, pool or outdoor space. And they give owners access to an immediate social community.
Cons of owning a condo
You are responsible only for your unit. This means you'll have to abide by your community's rules.
"You're a little more limited," Branson said. "You don’t own the land, just the inside of your unit. That means you have less control over certain things, like exterior repairs or even some rules about what you can or can't do."
Homeowners association (HOA) fees can be steep. Many condo buildings charge a regular fee for the maintenance and upkeep of buildings, community areas and amenities.
Those fees vary, but for the most part, they've grown in recent years due to inflation and deferred maintenance, according to Rueth.
"HOA function has really shifted between their mandate to protect the owners and maintain the property versus keeping costs as low as possible to maintain a low HOA fee to the owners," she said. "Some owners are on the board, so some of those owners are making decisions based on keeping costs low, but those decisions are backfiring" as deferred maintenance catches up to them.
It can be harder to get a mortgage. Because of the complicated nature of HOAs and the associations' struggle to keep costs low while also maintaining buildings, buyers are sometimes limited in how they can finance a condo purchase. Fannie Mae and Freddie Mac, government-sponsored mortgage giants that buy loans from banks, for example, won't issue loans for certain condo buildings across the country because of deferred maintenance, among other reasons.
"It's more challenging for buyers to come into the complex with traditional financing," Rueth said, referencing federal loans.
Condos can have weaker resale value. An entry-level, single-family home "probably has better appreciation opportunity long term because ultimately, you own the land," according to Rueth.
You'll have less privacy. Living in a condo can also mean sharing a wall and hallway with your neighbors, so you'll have less privacy than in a single-family house.