Tired of living in an apartment? Need to downsize? Then a condominium, or a condo, may be the home solution for you. But what is a condo? “Apartments are defined as renter-occupied units, while condo buildings have owner-occupied units,” says Amanda Pendleton, home-trends expert at Zillow. “If you don’t want to spend your weekends cutting grass, weeding, power washing, and making repairs to the outside of your home, you’ll likely be happy in a condo.”
Unlike a single-family home, which is detached and sits on a plot of land, condo living is part of a greater community (with fun amenities), and you still get to own property.
The best way to decide what residential style is right for you is to speak to a real estate agent in your area. Condos can range from high-end communities with posh perks like swimming pools to condominium complexes that are great for first-time homebuyers looking for affordability.
Here is everything you need to know before you become a condo owner.
What is a condo?
A simple condo definition, according to Michael Martirena, luxury real estate advisor at Compass in Miami, is as follows: an individual unit within a larger building or community that is privately owned. “Condo owners share ownership of amenities, common areas, and property facilities with other owners and have a say in how they are maintained and programmed,” Martirena says. “A condominium’s common spaces usually include hallways, lobbies, elevators, and amenities like swimming pools, fitness centers, tennis courts, lounges, and coworking spaces.”
High-end condominium buildings in big cities, like New York and Los Angeles, may also offer over-the-top amenities like pet spas and rock climbing walls.
The primary difference between a condo and an apartment is that you will have ownership of this real estate. But don’t confuse a condo with a co-op, a housing option in which you have shares in a corporation (in this case, the entire property and not just the individual unit). To be part of a co-op, you typically have a thorough financial vetting process with extensive paperwork. Experts also note that it could be more difficult to get a mortgage for a co-op than a condo.
While a condo may have outdoor space, it is not a private yard, and the owner is not solely responsible for keeping it in order. Instead you’ll likely pay maintenance costs and the job will be hired out. “This saves you from doing the work and from having to track down and hire the right people for those jobs so you can have more spare time to enjoy,” Pendleton says.
How much does a condo cost?
“Condos have historically been a more affordable option than detached single-family homes, but that’s changing,” Pendleton says. Based on 2023 Zillow’s Home Value Index, the typical value of a condo is $342,643 nationally, compared to $347,217 for a single-family home.