One of the first steps in buying a home is considering the type of property you want to purchase. Two common choices for first-time buyers are single-family homes and condominiums, commonly known as condos.
Each option has advantages and trade-offs. This article explores the financial and lifestyle differences between condos and houses to help you decide which is best for you.
Key Takeaways:
- Condos often are more affordable than single-family homes, depending on factors such as location and amenities.
- Single-family houses offer more privacy than condos, which typically feature shared spaces and walls.
- Condo ownership often includes homeowner association (HOA) fees, which help maintain shared amenities, such as pools or common areas. Some single-family neighborhoods also have HOA fees and amenities, but it’s less common.
Condo Vs. House: Key Differences
Let’s examine the key differences between condos and single-family houses.
What Is A Condo?
Most condominiums are housed in a large building or complex containing individual dwellings, each owned by a different resident. When you buy a condo unit, you only own the interior, nothing else. Some condos are similar to apartments or townhouses, while others are detached homes. Most condo complexes have shared common areas, such as a clubhouse, parking garage, fitness center, garden or a swimming pool.
Condo buildings and grounds are usually overseen by an HOA, which collects fees from each owner to manage building maintenance and the upkeep of outdoor spaces. HOAs usually have a set of rules, often called Covenants, Conditions and Restrictions, that condo owners must follow.
How Much Do Condos Cost?
According to the National Association of Realtors, the median price of a condo in August 2025 was roughly $366,800. That figure is only a rough guideline, however, because location, amenities, size and other factors influence pricing.
Another cost consideration is the monthly HOA fee charged to condo owners. HOA fees vary based on the unit’s location and size, the building’s history and the amenities available to residents. They also often vary widely by state. While they can cost anywhere from $100 – $1,000 per month, HOA fees can range widely — often $200 – $300 monthly, but potentially higher in luxury buildings or large metro areas.
They are also non-negotiable, and they can increase based on inflation or the need for major repairs. So when calculating your potential housing budget, be sure to add the fees on top of your monthly mortgage payment, to make sure you can afford them.
Homeowners Insurance And Property Taxes For A Condo
Condo owners typically carry a “walls-in” insurance policy that covers only the interior walls and what’s inside their unit, while the HOA master policy covers the building’s exterior and shared spaces. Condo owners typically pay property taxes on their individual unit. The HOA uses collected fees to cover taxes on shared areas and other common expenses.”
What Is A Single-Family House?
A single-family house is a detached dwelling with its own driveway, yard and direct street access. When you purchase a house, you also own the land it sits on – unlike with a condo. In some states, like Florida, new single-family homes often are built within HOA communities. In fact, over 30% of U.S. housing stock was part of an HOA as of 2023, according to the Foundation for Community Association Research, but they are much more common with condos versus single-family houses.
How Much Do Single-Family Houses Cost?
The median price of a single-family home in August 2025 was $427,800, according to the National Association of Realtors. Home prices depend on a variety of factors, such as size, condition and whether it’s a new build or a fixer-upper. Additionally, location usually plays a major role in determining a home’s value. When you own your own house, you’ll be solely responsible for maintenance and upkeep.
Homeowners Insurance And Property Taxes For A House
When you finance a home with a mortgage, you’re generally responsible for private mortgage insurance (PMI) if your down payment is less than 20% on a conventional loan, as well as homeowners insurance and property taxes. If your lender is using an escrow account with your loan, your monthly mortgage payment will include a portion for homeowners insurance and property taxes. The lender collects these funds in the escrow account and pays the bills on your behalf when they are due.
Mortgages For Condos Vs. Houses
While you can apply for a condo mortgage using the same loan programs available for purchasing a house, the underwriting process is somewhat more complex. Why? When a lender is approving a condo loan, it is not just the unit being evaluated. The underwriters need to consider both your personal finances, such as your credit history and debt-to-income ratio, and the financial health (and other factors) of the entire condominium building or complex. Underwriters may want to know the following factors:
- The age and structural condition of the condo
- The financial stability of the HOA
- Amenities and benefits offered to owners
- Proof of building insurance
- Any upcoming maintenance or other costs that could affect the new owners
Some condos, especially older or non-FHA-approved buildings, may require a slightly higher down payment than a traditional home mortgage. The good news? Overall, condos often cost less than a house, so you may not have to borrow as much money and your repayment may be lower with a condo mortgage. Also, if you (and the condo) qualify, you also could be eligible to get an affordable government-backed loan, like a VA-approved or FHA-approved condo mortgage.
Is Your Condo Warrantable Or Non-Warrantable?
When you apply for a conventional mortgage to finance your condo purchase, lenders will determine whether the property is considered warrantable or non-warrantable.
- A warrantable condo meets the guidelines set by Fannie Mae or Freddie Mac, meaning it’s eligible for conventional financing from a private lender, such as a bank or credit union.
- A non-warrantable condo doesn’t meet those guidelines, usually because of issues with the condominium building, such as high investor ownership, ongoing legal problems or insufficient funds or reserves in the HOA budget. A non-warrantable condo can make financing your purchase more difficult, requiring a larger down payment and a higher interest rate.
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The Pros And Cons Of Buying A Condo
If you are thinking of buying a condo, consider the following pros and cons.
| Pros | Cons |
|---|---|
| Condos may cost less: In many areas, buying a condo is more affordable than purchasing a house, making them a solid choice for first-time buyers. | Recurring HOA fees: Most condos come with HOA fees in addition to a monthly mortgage, increasing your total monthly payments. |
| Condos have low maintenance requirements: When you purchase a condo, your HOA fees will be used to cover maintenance expenses, such as lawn care, snow removal and other routine upkeep. Buying a house means all that property-related maintenance is your responsibility – and it can be a lot of time, work and expense. | Shared spaces and walls: There is often less privacy when you live in a condo versus a house. Condo units often share walls with other units, parking may be limited, and outdoor spaces are often shared. |
| Condos come with amenities: Condo complexes often feature shared amenities, such as a parking garage, garden, swimming pool or clubhouse available for all residents. If you’re buying a house, you’ll typically need to add these extras yourself, unless it’s in a planned community with an HOA. | HOA rules and restrictions: Living in a condo may mean less freedom to do what you want with your home. You must adhere to the rules and regulations of the HOA – from allowing pets to the ability to sublet your unit. |
| Resale may take longer: This is especially true in markets where demand for single-family homes is higher than for condos. |
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The Pros And Cons Of Buying A House
There are also benefits and drawbacks to purchasing a single-family home.
| Pros | Cons |
|---|---|
| Freedom from restrictions: When you own a house, you typically don’t have to worry about limitations or restrictions on pets or subletting, and you have the freedom to renovate the exterior and outdoor spaces on your property. | Maintenance responsibilities: Being a homeowner is a lot of work. Unlike a condo owner, you’ll be responsible for the upkeep of your home exterior and property, from yard maintenance to shoveling snow. |
| First-time home-buyer assistance programs: If you are a first-time home buyer, you may have more options for grants and no-to-low-interest loans when you buy a single-family house versus a condo. Many government and nonprofit programs offer assistance to help new buyers enter the housing market. | Higher cost: Home prices are often higher than prices for condos, and you may need a larger down payment. If you are a first-time buyer on a budget, a condo may be less expensive and cost less to maintain, depending on HOA fees. |
| Easier to resell: Single-family homes often have better resale value than condos. Also, you can sell your home to anyone you choose without having to get input from an HOA (unless you buy a home in a community with an HOA). | Potential lack of amenities: If you are on a budget, you may not be able to afford homes with high-end upgrades or amenities like a swimming pool. |
| Privacy: A house may provide more privacy, since you usually don’t share walls or common spaces with neighbors. |
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FAQ
The Bottom Line: Buying A Condo Vs. A House
Choosing between a condo and a house usually comes down to personal preferences and budget. Consider what’s important to you. If amenities and low-maintenance upkeep sound appealing, a condo might be a good entry into homeownership. If you want more space to grow and more freedom, and you are comfortable with handling regular upkeep, a single-family house may be a better choice.
Ben Shapiro
Ben Shapiro is an award-winning financial analyst with nearly a decade of experience working in corporate finance in big banks, small-to-medium-size businesses, and mortgage finance. His expertise includes strategic application of macroeconomic analysis, financial data analysis, financial forecasting and strategic scenario planning. For the past four years, he has focused on the mortgage industry, applying economics to forecasting and strategic decision-making at Quicken Loans. Ben earned a bachelor’s degree in business with a minor in economics from California State University, Northridge, graduating cum laude and with honors. He also served as an officer in an allied military for five years, responsible for the welfare of 300 soldiers and eight direct reports before age 25.
