By Mike Bodeen · 24 November 2025
*What’s the Best Investment?*
We’re often asked if Condos and Townhouses (condos) are as good a buy as Single-Family Detached (SFD) residences. It’s an interesting question, and until one does the math it’s not easy to come up with a right answer – and even doing the math doesn’t settle the matter, for sure.
Each have assets and liabilities. Loves and hates. But each provides a valuable need within the home ownership community. I’m going to attempt to analyze this question then throw out a long-range opinion of how I view these alternatives over the next 10-year period. This week I’ll start with condos* and next week we’ll look at SFD. And then I’ll give my own take comparing the future values of the two.
First, some numbers. Going back to the Covid era in winter/spring of 2020, which began our modern market upward shift, condo/townhomes increased in value by 58%. This via the monthly average sales price per square foot (PSF)** which works out to 9% per year. Back in 2020 the average priced condo/townhome PSF was $204. Currently we’re seeing a PSF for closings at $323 PSF.
The condo Median Sales Price in 2020 was $220,000. It has risen to $320,000 now – a 45% increase. Or about 7.5% per year.
The condo market had off the chart appreciation from Covid till this summer.
Since its peak value in February of this year however, ($370,000) the median price PSF has dropped $50,000 to $320,000 today – a 13% drop in 9 months. This was a far greater drop in value than SFD which has dropped 6% since its high in January this year.
Condos serve an important function as they provide greater affordability while providing home ownership opportunity. Condo values have suffered greatly from high mortgage rates. I anticipate that will reverse itself if and when mortgage rates lower.
Is there a difference between a condo and a townhome?
Yes. Typically, condos are built like apartments, adjacent to each other on all sides. Usually they have no garages, just carports. Townhomes are most often side-be-side, but not above and below, so the privacy factor is greater, and they also typically have garages attached.
The knock we most often hear against condos are mainly two: Apartment living and HOA’s. The apartment privacy complaint is obvious, but what about HOA’s? Is that a fair rap? Many condo complaints against HOA’s are not well understood. People will say, “the HOA”S are so high – and yes compared with SFD, they are. But condos include costs homeowners also have – just not in their monthly fees. Water, sewer, garbage collection, property hazard insurance, common area maintenance, (read: landscaping, pools and recreation, and often, gate maintenance.
HOA fees have been rising quite a bit – but for a very good reason. Their costs, just like SFD homeowner’s costs, are soaring. Associations must combine all building complex costs and then divide between their residences.
Overall, condos will continue to be popular, though there could be some storm clouds on the horizon, that we’ll discuss in the next few weeks.
\*When I mention “Condo,” this equates with Condominiums and Townhomes together.
*\*\*All stats are with much thanks from the amazing Cromford Report.*
Market data referenced in this article comes from The Cromford Report.