By Mike Bodeen · 8 December 2025
Over the past two weeks we’ve been comparing, from a value standpoint, single family detached homes (SFD) and Condo/Townhomes. This is the week to make the final comparisons and then I end this discussion by giving the reader my take about how each will do in the next ten years.
I’ll start with the Condo/Townhome market, a vital player in the community’s role of home ownership.
There can be no truthful denying, that Condo/townhomes are more affordable than SFD to purchase. But what about ongoing monthly costs? HOA fees by necessity have sharply risen across the country. Some reports say that the average HOA in Arizona is $448 per month – 2nd highest in the nation. Other reports state the average is between $300 and $400 per month.
Condo/townhomes have the benefit of shared costs for items such as roofing, common area maintenance (e.g., pools, rec areas, gates, painting, roads, some utilities, and insurance)
According to Regina Whelan of Fairway Mortgage, one of the main reasons for HOA monthly increases include master insurance policy costs. Just as SFD property insurance has risen substantially, condo/townhome policies have soared as well. HOA’s must pass all their operating costs onto the owners. She added that it’s vital for the buyer’s lender to do a pre-check on each condo complex as there may be lending restrictions on them – anywhere from added loan funds from buyers to outright condo complex disqualification.
Since early 2000, condo/townhomes have appreciated higher in price PSF than SFD, by 41%. A considerable amount. Okay, but what about more recently?
Since the Covid era began in the winter of 2020, condo/townhome prices rose an incredible 65% in just two years. They have since flattened out and today remain at around $330 psf – just where they were nearly 4 years ago. With mortgage rates and HOA’s rising, affordability, however, has taken a major hit.
Comparatively, SFD values from 2020 rose 73% from $182 PSF to $315 PSF about 10% more than condo/townhouse pricing. (see chart) Still very close.
So Condo/Townhomes since the 2020 Covid era, have risen slightly less than SFD. From these numbers, we’d give the short term (modern) value edge to SFD, but in the long run (25 years) Condo/Townhomes beat out SFD – substantially.
Although Condo/Townhome HOA’s have risen considerably, I think overall, they would equate with the same costs that SFD will likewise accrue. As an SFD owner, we are solely responsible for everything, from roofs, HVAC repairs or replacements – these can be huge costs.
“Properties with yards and privacy will be at a premium over the next ten years – and beyond. SFD will command greater demand and prices will rise – perhaps greatly, as we’ve seen in the past.”
Going forward, I’m concerned about continued rising costs of HOA fees just as I’m concerned about SFD costs rising as well. Whereas the financial picture in the past has supported the strength of Condo/Townhome values, I think the future belongs to SFD.
My reasoning is that there are few new SFD home communities being built. We’re seeing rental communities (condo-like) proliferating. It’s also a possibility that Condo/Townhomes that have been recently built for rentals could convert to condo sales, dare I say, “flood the market?”
SFD is a vanishing species inside the Phoenix metro communities – we’re finding the boomer Gen is holding onto their SFD homes a lot longer due to their current hyper-low mortgage rates. Properties with yards and privacy will be at a premium over the next ten years – and beyond.
All housing, including mobile homes, which rose 159% in the last 25 years, will do well. But SFD will command greater demand and prices will rise – perhaps greatly, as we’ve seen in the past.
To sum it up: Condo/Townhomes over the past 25 years have been superior to SFD on a price per square foot (PSF) basis. And in the past 5-6 years, SFD has been only slightly higher.