What Is A Condo? Pros And Cons For Homebuyers

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For some home hunters, the thought of maintaining an entire house and yard conjures up a bit of anxiety — and the cost of a freestanding single-family home these days can send shivers down your budget’s spine. Luckily, there are other kinds of properties to choose from that don’t entail nearly as much upkeep, and come at a more reasonable price to boot, like condos. So what is a condo exactly? And should you buy one? Read on to get a sense of whether condo life is right for you.

What is a condo?

A condominium, usually shortened to simply “condo,” is a privately owned, individual residential unit within a community of other units. In general, the owner usually owns the interior of their unit and the structural components of exterior walls. Condo owners jointly own shared common areas within the community, such as lobbies, pools, parking garages and elevators.

While many condos are found in high-rise buildings with hundreds of other units, some might be in small walk-up buildings with just a few other units. Some are in grand old buildings, and some are ultra-modern, brand-new construction. Detached condos can even be found in some markets.

Condos typically come with a set of rules, called “covenants, conditions and restrictions” or CC&Rs, that all residents must adhere to. “Condominiums are often referred to as a ‘common interest development,’” says Holly Leonard, an agent with Haven Real Estate Brokers in the Atlanta area. “A homeowners association typically manages the common areas and oversees the CC&Rs that apply to the property.”

Why buy a condo?

For many buyers, the answer is simplicity. With most condo developments, you only have to take care of your home’s interior. All the rest is handled by a professional management company: There’s no lawn to mow, flowerbeds to maintain or snow shoveling to worry about. This can be especially beneficial for older homeowners, folks who travel often or live seasonally in another area, or those who simply don’t want to spend their time on home maintenance.

Another important factor is the price tag. Condos have historically been more affordable than single-family homes, and that trend continues today. According to January 2025 data from the National Association of Realtors (NAR), the median price of an existing (not new-construction) condo was $349,500 — much lower than the $402,000 median for an existing single-family home. Condos tend to have lower property taxes, too.

If you choose to take part, condos can also provide a social aspect that single-family homes don’t. Shared amenities and planned events for neighbors are often appreciated by younger buyers or those who have just moved to town and don’t know many people yet.

In addition, many condo buyers do so intending to use it as a rental property. Condos can make great investments, particularly in neighborhoods with lots of renters or in locations with heavy tourism. If you’re thinking about taking this route, just remember to consider the tips, tricks and tax considerations of buying a rental property.

Pros and cons of condo life

It’s important to also weigh the benefits and drawbacks of the lifestyle, not just the price you’ll pay to move in.

Pros

• Affordability: For first-time homebuyers, condos can make ideal starter homes — they don’t have the elevated price of a detached home, but you can still reap the benefits of ownership and building equity.
• Less upkeep: Since most, if not all, exterior maintenance on condos is handled by the HOA, living in a condo means no shoveling snow, raking leaves or mowing the lawn.
• Security: Many condo communities have secure entrances or security staff, and some even have a doorman. “Many single people do not like living alone, and condo living makes them feel safer,” Leonard says. This can also be a perk if you work odd hours or travel frequently.
• Amenities: Condo residents may have access to top-notch amenities like a barbecue area, swimming pool, fitness center, clubhouse and more — and the cost of enjoying these perks is shared among all residents.
• Socializing opportunities: Many HOAs organize events like pool parties, barbecues and doggy playdates. In addition, you regularly see your neighbors face-to-face in passing. “Condos are a great place to meet people,” says Leonard.

Cons

• HOA rules: One of the biggest complaints about living in a condo community is that HOA rules can be restrictive, providing mandatory guidance on everything from trash pickup and noise to what types of items may be stored on your patio and how many pets you can have. If you fail to follow HOA rules, the consequences could potentially be severe.
• HOA fees and assessments: HOA fees are mandatory and generally go up over time to address maintenance costs and any added amenities. It’s important to factor this cost into your homebuying budget. In addition to regular monthly fees, condo associations might also enact special assessments for unexpected expenses, for example if the roof suffers damage and needs to be repaired.
• Lack of privacy: Condos share common areas, so you’re going to have to regularly interact with your neighbors — a plus for some people, but a negative for others. Neighbors may also potentially hear each other through shared walls.
• Investment risk: Real estate is all about comps, and if one of the comps in your building is undervalued, yours could be next — your unit’s value hinges on all the others in the community also maintaining their value. “Condos can be a riskier investment because you are sharing ownership with other people in the building,” Leonard says. “If one person forecloses or short-sells their condo, it can take a toll on your value.”
• Higher interest rates: That potential for issues from other owners means that lenders tend to charge slightly higher rates for condo loans, to compensate for that elevated risk.
• Restrictive rental policies: If you’re buying as an investment, look carefully at the condo’s rules regarding renting out your unit or listing it on short-term sites like Airbnb. Some aim to limit the opportunity for strangers to check in every night.

Condo vs. house

If you live in a condo, it’s your home, but it’s not a house. That’s an important distinction, particularly when it comes to maintenance.

Consider a detached single-family house whose roof needs to be repaired. As a homeowner, that expense would fall entirely on your shoulders. If you own a condo, though, the cost of a needed roof repair would likely be split between all the other owners in the community, and a portion of it might also be paid for via the reserves of the homeowners association.

Sharing expenses can be helpful, but condo owners often must follow additional rules. For example, there could be aesthetic requirements to adhere to, such as a mandate to install the same windows or mailbox as every other unit. Simply put, you might not have complete control over the decisions about your condo, whereas house owners have control over pretty much everything.

Find other housing types and styles

Bottom line

Whether you’re looking for a starter home that can eventually help you move into a bigger space or you’re thinking about hanging on to the unit as a long-term investment, buying a condo can be a great decision. However, condo living isn’t for everyone. To figure out whether it’s a smart move for your own finances and lifestyle, talk to a real estate agent to get a sense of what you can expect from the condo options in your local market.

FAQs

• Why are condos more affordable than houses?
  

  The main reason that condos are generally cheaper than single-family homes comes down to space: Condos typically offer less square footage than a standalone house. Plus, they don’t typically have yards, so you don’t get as much private space as you do with a house.

• Are condos cheaper than apartments?
  

  In most of the country, condos are typically owned, whereas apartments are typically rented. So yes, condos tend to be more expensive than apartments due to the difference in ownership: You need to pay a down payment, closing costs, mortgage payments, property taxes and more. However, owning a condo does come with the benefit of building up equity, and you may even be able to find an FHA-approved condo, which will require a much smaller down payment.

• Should I buy or rent a condo?
  

  Your finances will be the main deciding factor that answers this question. Buying can be a smart move if you have enough for a down payment and plan to own the condo for long enough to justify paying the closing costs. It can get you on the homeownership ladder, and start building equity for you, for less than jumping right into a single-family home purchase. But if you’re unsure of how long you actually plan to stay, renting a condo can be a good opportunity to test out a particular building or area of town before making a long-term ownership commitment.