Key takeaways
- Condos can be a more affordable path to homeownership for first-time buyers. Condo owners also benefit from lower maintenance responsibilities and access to shared amenities.
- Homeowner association fees, special assessments and financing hurdles can offset the savings. Rising dues and insurance costs add to monthly expenses.
- Buyers should treat a condo purchase like a business decision. That means reviewing HOA financials, understanding the reserve fund and planning to stay for at least five to seven years, since condos often appreciate more slowly and sit on the market longer than single-family homes.
Condos are a good entry point for first-time buyers, especially for those buying in big cities where prices are high and there's a limited supply of housing options, according to Nicole Rueth, senior vice president of CrossCountry Mortgage in Englewood, Colorado.
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 April 2026, the median price of a single-family home was $422,300 while the median cost of a condo was $374,100, 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," Rueth 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.
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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 fees can be steep. Many condo buildings charge a regular fee for the maintenance and upkeep of buildings, community areas and amenities. These dues have continued to climb, along with special assessments and insurance costs, Rueth said. In many markets condos are sitting longer and appreciating less than single family homes, she said.
“A buyer going into a condo today needs to treat it like a business decision, not just a lifestyle one,” Rueth said. “That means reviewing the HOA financials, understanding the reserve fund, and honestly asking whether this purchase works for their life for the next five to seven years, because the exit may not be as easy as they hope.”
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.