Condo vs. House: Which Home Type Is Best for You?

When you’re ready to buy your first home or first rental property, it’s common to wonder whether you should choose a condo or a house. A condo is more cost-effective and can come with extra amenities, but it also comes with neighbors nearby. A house comes with more maintenance responsibilities and potentially additional costs, and if you want a swimming pool or other amenities, you’ll have to pay for and maintain them. Which should you choose? That depends on your ownership goals, budget and time.

How Buying a Condo Works

When you buy a condo, you typically purchase the individual unit. You won’t own the land or the larger building. That means you only own and are responsible for the space within your unit. This can be a major plus for first-time homeowners or those who don’t want to spend a lot of time worrying about maintenance or yard work. 

Condo units usually have homeowners associations (HOAs) that maintain the communal spaces, including gardens, roads and amenities like parks, sports courts or swimming pools. When buying into a condo, you must make a monthly or annual contribution to the HOA to maintain the communal areas. It might include utilities like water, gas, electricity and garbage pickup. HOA fees can range from $100 to $500 or more. 

On the positive side, you won’t have to worry about whether the grass needs to be cut or who will clear the roads in winter. You also won’t own any land and will typically be surrounded by neighbors. 

The main advantages of buying a condo include: 

• Lower maintenance and upkeep responsibilities
• Access to amenities such as gyms, swimming pools and common areas
• Lower costs
• Simplified monthly expenses

The disadvantages of condo ownership are the limited control and freedom over property modifications and renovations. You’ll have to abide by HOA rules, which can limit what you can do with the property. The HOA may limit whether you can rent out the property or want to screen potential buyers if you choose to sell. You may also pay higher association fees. Learn more about whether condos are a good investment. 

How Buying a House Works

When you buy a house, you also typically purchase the land the house sits. A house is generally a free-standing unit. Depending on the location, you might have neighbors close to your property, or they might be far away. With a house, you have full control and responsibility for the property. 

You are responsible for all property maintenance and upkeep and connecting and paying utilities such as water, electric and gas, septic or garbage disposal. You’ll have to organize for basic upkeep like mowing the lawn, clearing the roads and ensuring other property maintenance like clearing the gutters. 

Some homes are located in neighborhoods with homeowners associations, which may restrict or have rules around what you can and can’t do on the property. For example, some HOAs may restrict what you can put in your front yard or where you can install solar panels. However, HOAs for homes are generally less restrictive than condo HOAs. 

Generally, houses are more costly but are also easier to sell. Consider buying a house instead of a condo if you want private property and more control over your outside living environment. If having a yard or garden is important to you, a house can also be a good choice. 

Advantages of buying a house include:

• More space and privacy
• More control over landscaping or amenities
• No shared walls with neighbors
• Generally, a larger space.

The disadvantages of buying a house are the higher upfront costs and the ongoing maintenance expenses. You won’t have access to amenities like a pool or gym unless you pay for them in full. 

Major Differences Between Buying a Condo vs. a House

Here’s an overview of the major differences between buying a condo vs. a house. 

Ownership

Buying a house means owning the land and the building, while buying a condo means owning a unit within a larger building and sharing ownership of common areas with other unit owners. If owning an independent property is a priority for you, a home can be a better choice. However, a condo can be a great fit if you like the idea of shared ownership with access to amenities like a swimming pool or gym. 

Maintenance

House owners are solely responsible for the maintenance and repair of the property, while condo owners typically pay fees to an HOA for the maintenance and repair of common areas. 

Most experts suggest saving 3% of the home’s value for annual maintenance. Most first-time homeowners underestimate the amount of time required for home ownership, from hiring professionals to performing maintenance tasks yourself. 

Remember that HOA fees can be higher than the 3% estimated for homes because you’re paying for the convenience of maintenance, security and additional amenities. 

Amenities

Houses may have a backyard, private pool or garage, while condos often have shared amenities like a gym, pool, parks or community rooms. Which has more or more desirable amenities depends on your lifestyle and goals. 

Privacy

Houses generally offer more privacy because they are typically standalone structures with more space between neighbors, whereas condos involve proximity to other units and shared walls or floors. This generally gives you less privacy and also means you may hear your neighbors through the floor, ceiling or walls. If privacy is one of your priorities, a home will give you more independence. 

Cost

Houses are generally more expensive to purchase than condos because of the larger size and more independent ownership, but condos may have additional fees and assessments. Carefully compare total monthly costs, including mortgage payments, to determine which offers greater value for your budget.  

Generally, within the same market, the total costs for a condo will be less than a home in the same area. However, if you opt for a smaller home, it could be comparable to condo costs. 

Insurance

A condo typically requires a different type of policy than a house because condo owners typically only need to insure the interior of their unit, while house owners need to insure both the interior and exterior of their property. 

Speak with the condo HOA to understand insurance needs or an insurance agent to understand possible insurance options, including additional required insurance for the area, such as flood insurance. 

Customization

House owners can customize and modify their property as desired, while condo owners may have restrictions imposed by the HOA or building regulations. While homeowners may still need to abide by HOAs in some cases, you will generally have more freedom for landscaping, design, house color and amenities. 

Community

Condos often offer a sense of community and social interaction because of shared spaces and amenities, while houses can provide more seclusion and independence. If you’re looking for a condo community with opportunities to connect with friends and neighbors, look also for the shared spaces and activities. 

Security

Condos may offer added security measures like gated entry or on-site security personnel, while houses rely more on individual security systems or neighborhood watch programs. Depending on the area, the additional security of a condo can give you a greater feeling of protection. You can also add private security systems, fencing and other security features to a home.

Lifestyle

Houses provide more space, privacy and freedom, making them suitable for families or individuals who prefer a detached living arrangement, while condos cater to those who enjoy a more urban or communal lifestyle with shared amenities and a lower maintenance burden. 

Resale Value

Houses tend to have higher resale values and appreciate more over time. However, this depends on the market and type of property. Condos may have smaller market fluctuations and appreciation rates. Condos may remain stable over time but can be more challenging to sell because of HOA restrictions or approvals. 

Which Property Type is Right For You? 

There’s no single answer to condo versus house. Condo living can offer more time to pursue other interests and a sense of community but sacrifices privacy and autonomy. On the other hand, a home gives you more space, privacy and independence but can come with higher costs and time commitments for upkeep. Carefully weigh your lifestyle priorities and plans for the next few years and budget to choose the right property type for you. Or learn more about real estate investing.

Frequently Asked Questions