Condominiums have gotten cheaper in latest months, however that does not mechanically make them a cut price.
In July, condos and co-ops within the U.S. offered for a median value of $349,186, down 2.1% from a yr earlier, in keeping with Redfin gross sales knowledge. Over the identical interval, the median value of a single-family dwelling rose 1.4% to $466,396.
Redfin defines condos as individually owned models inside multi-unit buildings, reminiscent of flats. With condos, consumers get possession of their particular person unit together with a share of the constructing’s widespread areas. Homeowners usually pay month-to-month dues to a owners affiliation that manages upkeep, insurance coverage and bigger repairs of their constructing.
Whereas condominium costs could also be falling, there are often quite a few hidden prices that consumers nonetheless should pay. Rising HOA dues, insurance coverage premiums and new reserve necessities are already discouraging consumers — and in lots of circumstances, these increased prices are baked into the decrease sale costs, Redfin studies.
Why condominium costs are dropping
The worth drop for condos is basically pushed by oversupply, says Redfin. As of Might, there have been about 80% extra condominium sellers than consumers. In that month, lively condominium listings climbed to their highest stage in a decade, and houses took longer to promote than in any Might since 2015.
“It is a sluggish housing market throughout the board, however condos have been hit significantly exhausting,” Boston-area actual property agent Aditi Jain instructed Redfin.
Florida and Texas stand out with among the steepest declines in value, pushed by a surge in provide. In Florida, that pattern is amplified by increased month-to-month prices for potential consumers — together with rising HOA dues, surging insurance coverage premiums and new reserve guidelines that require associations to put aside extra for repairs.
Nationally, prices are climbing as properly. The median HOA price rose roughly 13% between April 2024 and April 2025, climbing to $143, in keeping with Realtor.com.
That stated, the condominium market over the previous yr is uneven: In lots of massive cities within the Midwest and Northeast, condominium costs have posted single-digit positive aspects, in distinction to the double-digit value drops in Florida and Texas.
Why condos may not be a cut price
Even with decrease sticker costs, brokers say condos can carry further prices that add up rapidly. HOA dues, insurance coverage and the chance of particular assessments for main repairs can depart condominium homeowners paying as a lot — or extra — than they might for a indifferent home.
Condos additionally are inclined to promote at a premium on a per-square-foot foundation, in keeping with Redfin, which implies consumers usually get much less house for the cash.
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“I as soon as had a consumer fall in love with a $450,000 condominium that was $150,000 cheaper than the close by townhomes,” stated Evan Harlow, a Maui-based actual property agent. “However once we added the $900 month-to-month HOA price, the long-term affordability was virtually precisely the identical.”
And past the maths, the client pool for condos could be smaller, which may make it tougher to promote later.
“Loads of condominium associations do not permit consumers with FHA loans, which is limiting gross sales,” Jain instructed Redfin. “Two of my purchasers who need to purchase a condominium have needed to again out of a purchase order as a result of they could not get financing.”
When condos nonetheless make sense
Condos is usually a good match for first-time owners or consumers who worth comfort and placement, in keeping with the Nationwide Affiliation Realtors. That is as a result of they’re usually concentrated in city areas, the place indifferent properties are both scarce or far costlier.
“Condos is usually a nice entry level for a brand new purchaser. You are usually stepping into a greater location with facilities you could not afford in a single-family dwelling. The trick is ensuring the constructing is financially sound and well-run, as a result of that is what retains prices predictable,” stated Mick Duchon, an actual property agent in South Florida.
However even then, consumers should weigh the entire ongoing bills.
“It is all within the math,” says Duchon. “A condominium with low upfront prices can find yourself costing extra if the HOA charges and reserves aren’t stable.”
Which means trying previous the sticker value and reviewing HOA financials, understanding what the dues cowl and asking whether or not insurance coverage or assessments are more likely to climb sooner or later, says Harlow.
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