Amid rising living costs and mortgage rates, one type of home stands out as the most budget-friendly option for prospective buyers
Looking for a New Home? This Is the One Type That’s Most Affordable Right Now
Published on Jun. 03, 2025
If you’re looking to buy a home, you’re likely well aware of the current challenges: Along with overall economic uncertainty, costs of living are up and mortgage rates—while lower than they were a year ago—are still on the upswing. Still, it is possible to find a new home—and there is one type of housing that is most affordable right now.
Read on to find out what it is and if it’s right for you.
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What type of housing is more affordable?
Despite increases in association dues and other fees, condos are one of the most affordable types of housing in the U.S. these days. In fact, there were 15% more condos for sale in the U.S. in April compared with a year ago, according to Redfin, and it’s a buyer’s market. As a result of there being more supply than demand, many condo sellers are having to drop their prices to close deals. Close to 70% of U.S. condos that sold in February sold for less than their original asking price, according to Redfin. And condos are appealing to a wider range of buyers—not just first-time homebuyers—thanks to their relative affordability and amenities.
Why are condo prices more affordable?
Though condos can be more affordable than single-family homes upfront, they do come with homeowners association (HOA) fees or dues, which often include many costs that an owner of other types of housing would need to pay for separately. These cover things like utilities, security, maintenance and amenities, such as a pool or fitness room.
And, while condo prices are down, condo association dues were up 7% in April, according to Redfin, but those vary greatly by state. For example, in parts of Florida, HOA fees were up by up to 10%, often a result of increased insurance premiums, but just 3% in Michigan.
What factors should you consider before buying a condo?
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Consider your monthly costs. Find out what is included in your condo fees. “They vary anywhere from $300 to over $1,000, just depending on the amenities that are in that condo,” says Reem Trahan, a realtor and broker in Arlington, Virginia. But if that covers your utilities, WiFi and parking—fees you would otherwise pay out of pocket—you may come out on top.
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Read all the documents. You’ll also want to look at things like the condo resale information and the minutes from past homeowner association meetings, she says, to get more details about the property and the neighborhood.
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Look at the properties in person. “I would look at all your options and go out there and take a look physically at those options,” Trahan says. “You know what the numbers are monthly, but then go out there and feel it.” She notes that some condos may be set up more like townhomes, with multiple levels, a fenced basement and a backyard. “So you’d walk into that neighborhood and think, ‘Oh, these are townhomes’–not realizing they’re actually condo ownership.”
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Do the math. This will help you see what it would cost you to purchase the properties you’re considering, Trahan says. If you get a great deal on a condo, your monthly mortgage payment and HOA fee combined could be cheaper than rent.
Is a condo a good investment?
A condo is still a good investment—whether you live in it or plans change down the road and you opt to find a tenant. As for whether owning a property is better than renting one, she says there’s no question. “Absolutely, because you are paying down your mortgage.” Whether you are paying down the mortgage or a tenant’s rent is paying it down, she says, “that’s all equity.”
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Sources:
- Wall Street Journal: “Is a Condo Really Worth It Right Now?”
- Redfin.com: “68% of Condos Sold Below List Price in February—the Highest Share in 5 Years”
- Reem Trahan, broker-owner of Reem & Co. Real Estate in Arlington, Virginia; interview, May 22, 2025
