Condo vs. House: What You Should Know Before You Buy

A client recently asked me a great question: “I’ve been reading that condos don’t appreciate as well as single-family homes. If our long-term goal is a house, is it smart to start with a condo?”

I love when clients bring this kind of thoughtful research into the conversation. So let’s break it down.

📊 What the Data Says

Right now, both condos and single-family homes (SFHs) are taking longer to sell compared to a few years ago. Prices for both peaked during the COVID market boom, and have since settled slightly. That’s expected, especially with higher interest rates and economic uncertainty.

A lot of people have lost some buying power recently. Stock market fluctuations affected retirement accounts, which impacts down payments. Higher mortgage rates mean higher monthly costs. So, yes, everything is sitting a little longer.

That said, here’s the key takeaway: Yes, condos appreciate more slowly than houses. But they still build equity. And over time, that equity can open doors.

🧾 My Personal Example

Back in 2017, I bought a condo in Cedar Mill for $180,000. It wasn’t fancy, but it was in a great location: close to Nike and Intel, in a strong school district, and crucially, the HOA allowed rentals.

In 2021, that same condo had appreciated enough for me to pull out a $54,000 Home Equity Line of Credit (HELOC). That money became the 10% down payment on my (almost) dream home. Now, I rent the condo out for just the cost of the mortgage and HOA, and it continues to build equity for me in the background.

It wasn’t a forever home. It was a stepping stone. And it worked.

🏠 So... Should You Buy a Condo?

If you can afford a single-family home now and it fits your lifestyle, great! But if that feels just out of reach, a condo can still be an incredibly smart investment.

Here’s why:

• You start building equity instead of paying rent

• You lock in housing costs before prices or rates rise again

• You can potentially rent it out later and keep the asset working for you

• You stay connected to the housing market instead of watching from the sidelines

Homeowners, on average, have 40x net worth than renters and equity is a big part of that. Even a modest start can pay off in a big way over time.

🤔 What Makes a “Good” Condo?

If you're condo shopping, look for:

• A solid HOA (financials, rules, reserves)

• A location near jobs, transit, and good schools

• A unit that allows rentals (even if you don’t plan to rent, options matter)

• Reasonable monthly HOA dues and well-maintained common areas

Not all condos are created equal. But with the right guidance, they can be a powerful launch pad toward long-term financial stability.

💬 Let’s Chat About Your Goals

Whether you’re thinking about a condo, a townhome, a house, or you’re still in “just curious” mode, I’m here to help you figure it out. No pressure. Just honest answers.

Reach out here to start the conversation. Let’s find what works for you right now while keeping your big picture in mind.