When you think about buying your first home, you probably picture a traditional house with a yard, a garage, and extra space to grow. But with affordability still a challenge, getting everything you want right away could cost more than you're comfortable spending.
So, if you’ve looked at your budget and buying a traditional house feels out of reach right now, there may be another option worth considering: a condo.
In many markets, condos are much more affordable than traditional houses, making them a great way to get started on your homeownership journey.
Condos Can Cost Less Than You Think
According to a recent study by Zillow:
““Condos are the most commonly affordable home type in virtually every metro. At the starter level, the savings can be pretty significant. Nationally, starter condos average $197,468 — that’s about 6% less than the typical starter home.”
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And depending on your area, the price difference could be even bigger.
Zillow highlighted metro areas where starter condos cost much less than what a median income household could afford to spend on a home. Here are the top 10 markets from the study (see chart below).
Houston has the biggest price gap. A typical starter condo there costs around $85,600, which is 72% below what a household earning the area's median income could afford.
Even if your city isn’t on the list, don’t worry. Condos can still be a more affordable option in many parts of the country. Here’s why.
A Condo Could Give You a Different Way In
One reason condos are often more affordable is simple. They’re usually smaller than traditional houses, so you may pay less for the space you need.
If you’re comfortable with a little less space or already live in a smaller apartment, a condo could be a great way to get started. You could pay less upfront and save on furniture and other items since you won’t have as much space to fill.
More buyers are choosing smaller spaces to make homeownership more affordable. Ali Wolf, Chief Economist at New Home Source, explains why this is becoming a popular choice.
““In addition to favoring smaller floor plans, more consumers are showing a willingness to live in an attached home. This shift is not driven by a preference for shared walls, but by a pursuit of value.”
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That’s what it really comes down to. Considering a condo doesn’t mean settling for less. It means finding a way to become a homeowner that fits your budget.
Don't Rule Out an Option That Could Work
If you’re having trouble finding a house you love that fits your budget, talk to your agent about including condos in your home search.
You might find a condo in a neighborhood you thought you couldn’t afford, enjoy amenities that would otherwise be out of reach, and become a homeowner sooner instead of waiting until a traditional house fits your budget.
Of course, condos come with a few trade offs, like shared walls, less outdoor space, and HOA fees to include in your monthly budget. But if it means finally owning your own home, those compromises might be worth it.
Plus, many condo communities offer great amenities like pools and gyms, and the HOA often takes care of some maintenance. If you’re used to apartment living, this could make becoming a homeowner not only more affordable but also a lot easier.
Bottom Line
Your first home doesn’t have to be a single family house. If affordability has been holding you back, let’s expand your search and see if a condo fits your budget.
