Is it worth buying a condo?

Is it worth buying a condo? If you plan to stay briefly, the answer is usually no. Over 7 years, renting comes out ahead in 580 of 813 cities, while our house verdict leaves out condo fees. Condo ownership brings monthly association dues, plus special repair bills and slower resale. First, your purchase must beat your city's baseline, and then it must also cover those extra costs.

Is buying a condo worth it next to a house?

A detached house usually costs more at the outset than a condo. The National Association of Realtors reported a September 2026 median sale price of $363,700 for condos and co-ops, compared with $422,700 for single-family homes. Each type increased by 1.2% over the year, although single-family homes usually cost more locally.

A shared bill continues permanently alongside the lower price. An HOA, or homeowners association, is the board that handles a building. It gathers monthly dues from every owner to keep the property running. Across the US, 84.8% of listed condos and townhomes have HOA fees, compared with 33.4% for single-family homes, according to Realtor.com.

HOA dues you pay each month on top of the mortgage

Association dues are due every month that you own the unit. Among 86.6 million owned US households, 21.6 million paid a condo or HOA fee in 2024, according to the US Census Bureau. Nationally, the median cost was $135 each month, which equals $1,620 each year. The median for owners with a mortgage was $120, while owners without one paid $184.

City towers and coastal towers charge far more. According to the Census data, about 3 million homes paid over $500 each month. Each year costs $6,000, and the 7-year total is $42,000. Among fee payers in New York, 64% paid above $500. Realtor.com found that the median HOA fee in the Miami metro reached $617 each month in 2025. This amount makes up 26.9% of the mortgage payment when a typical local home has 10% down at a 6.0% rate. It adds $7,404 to your yearly costs.

Dues aren't all extra loss because they cover exterior upkeep and building insurance. Even so, dues increase over time and raise the cost of owning a home for you.

Special assessments and unexpected repair bills

Monthly dues go into a condo building's reserve fund, a savings account for major future work such as roofs and elevators. If the reserve fund doesn't have enough money, the board imposes a special assessment. Owners share this extra charge among themselves on top of their regular dues.

Realtor.com notes that new laws following the Surfside collapse raised condo reserves and dues in Florida. Under state rules, Florida condo buildings with at least three stories must get a structural reserve study every 10 years. A milestone inspection is also required at 30 years of age and every 10 years after that. Associations may charge assessments or take out loans when reserves fall short.

What makes condos so hard to sell?

Buyers are deterred by rising fees, higher insurance costs and large special assessments. According to Redfin, the median US condo sale price in May 2025 dropped 2.2% from a year earlier. The price of single-family homes increased by 0.5%. A condo required 46 days to go under contract, while single-family homes required 38 days. Condos for sale had a nearly 1 in 10 risk of selling at a loss, more than twice the single-family share.

Buying a condo vs renting: the condo version of the verdict

For every city's rent and prices, our city pages rely on Zillow data. At an 8.3% return, the renter invests the down payment. The buyer makes a 20% down payment at 7.24%, with 3.5% paid to buy, 1% for upkeep and 6% to sell. Across 7 years, renting wins in 580 of 813 cities even before dues, while buying wins in 176.

These cities have the greatest buying advantage in our model, which includes no HOA dues. Most are in Florida. They include South Florida condo towns such as Delray Beach, Deerfield Beach and Coconut Creek near Miami. Subtract the dues before relying on the stamp for a condo there. At $617 each month, the Miami-area median adds up to $51,828 over 7 years.

Sources: Zillow Home Value and Observed Rent indexes, with results from our rent versus buy method using 20% down over 7 years.

When is it worth buying a condo?

Low dues, full reserves and a stay past the break-even year make a condo more advantageous than renting. The break-even year is the point where the total net cost of owning falls below renting. At Freddie Mac's 7.24% rate, the median break-even year is 10 wherever buying catches up.

Before placing a bid on a unit:

• Make sure monthly dues are close to the Census median of $135, rather than $500 or more.
• To confirm the reserve fund is full, review the latest reserve study and budget.
• To have your fixed payment beat 3.5% yearly rent growth, plan to stay past year 10.
• Use the rent vs buy calculator and enter the monthly dues on the insurance and HOA line. Next, compare the result with the renting versus buying pros and cons.