Condo prices are falling—but a bargain isn’t guaranteed

Condominiums have gotten cheaper in recent months, but that doesn’t automatically make them a bargain.

In July, condos and co-ops in the U.S. sold for a median price of $349,186, down 2.1% from a year earlier, according to Redfin sales data. Over the same period, the median price of a single-family home rose 1.4% to $466,396.

Redfin defines condos as individually owned units inside of multi-unit buildings, such as apartments. With condos, buyers get ownership of their individual unit along with a share of the building’s common areas. Owners typically pay monthly dues to a homeowners association that manages maintenance, insurance and larger repairs of their building.

While condo prices may be falling, there are usually a number of hidden costs that buyers still have to pay. Rising HOA dues, insurance premiums and new reserve requirements are already discouraging buyers — and in many cases, those higher costs are baked into the lower sale prices, Redfin reports.

The price drop for condos is largely driven by oversupply, says Redfin. As of May, there were about 80% more condo sellers than buyers. In that month, active condo listings climbed to their highest level in a decade, and homes took longer to sell than in any May since 2015.

“It’s a slow housing market across the board, but condos have been hit particularly hard,” Boston-area real estate agent Aditi Jain told Redfin.

Florida and Texas stand out with some of the steepest declines in price, driven by a surge in supply. In Florida, that trend is amplified by higher monthly costs for prospective buyers — including rising HOA dues, surging insurance premiums and new reserve rules that require associations to set aside more for repairs.

Nationally, costs are climbing as well. The median HOA fee rose roughly 13% between April 2024 and April 2025, climbing to $143, according to Realtor.com.

That said, the condo market over the past year is uneven: In many large cities in the Midwest and Northeast, condo prices have posted single-digit gains, in contrast to the double-digit price drops in Florida and Texas. 

Even with lower sticker prices, agents say condos can carry extra costs that add up quickly. HOA dues, insurance and the risk of special assessments for major repairs can leave condo owners paying as much — or more — than they would for a detached house.

Condos also tend to sell at a premium on a per-square-foot basis, according to Redfin, which means buyers often get less space for the money.

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“I once had a client fall in love with a $450,000 condo that was $150,000 cheaper than the nearby townhomes,” said Evan Harlow, a Maui-based real estate agent. “But when we added the $900 monthly HOA fee, the long-term affordability was almost exactly the same.”

And beyond the math, the buyer pool for condos can be smaller, which can make it harder to sell later.

“A lot of condo associations don’t allow buyers with FHA loans, which is limiting sales,” Jain told Redfin. “Two of my clients who want to buy a condo have had to back out of a purchase because they couldn’t get financing.”

Condos can be a good fit for first-time homeowners or buyers who value convenience and location, according to the National Association Realtors. That’s because they’re often concentrated in urban areas, where detached homes are either scarce or far more expensive.

“Condos can be a great entry point for a new buyer. You’re often getting into a better location with amenities you couldn’t afford in a single-family home. The trick is making sure the building is financially sound and well-run, because that’s what keeps costs predictable,” said Mick Duchon, a real estate agent in South Florida.

But even then, buyers have to weigh all of the ongoing expenses.

“It’s all in the math,” says Duchon. “A condo with low upfront costs can end up costing more if the HOA fees and reserves aren’t solid.”

That means looking past the sticker price and reviewing HOA financials, understanding what the dues cover and asking whether insurance or assessments are likely to climb in the future, says Harlow.

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