Real Estate Experts: Types of Condos Buyers Want Most
Written by
David Nadelle
Edited by
Jenna Klaverweiden
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
Despite rising home prices, high interest rates and limited housing supply, owning a home is still considered a big part of the American Dream. However, the American Dream is less of a reality today in the United States, as more and more people get priced out of having a house.
According to Simply Insurance, approximately 74 million Americans, or 27% of the U.S. population, have abandoned homeownership in favor of condominium living. California has the most condo owners (25.7 million), followed by Florida (14.9 million) and New York (6.7 million).
“For first-time buyers, buying a condo is often the next logical step after renting,” said Leon Fisher, real estate advisor at Zook Cabins. “It’s an affordable way to keep the previous lifestyle, while securing ownership and a predictable monthly cost.”
Here are the condos buyers want most, according to experts.
Also see the four types of condos that are hardest to sell, according to real estate agents.
Condos Over Co-Ops
Condos are a viable housing option for Americans looking to spend less and get more. And they are a more popular and available choice than a co-op situation, a residence in which the owner possesses shares in a corporation that owns a building rather than the real estate itself.
“Condos offer significantly more flexibility than co-ops, both for resale and renting, as they typically don’t require board approval,” said Charlie Attias, licensed associate real estate broker at Compass. “This greater liquidity and ease of ownership makes them especially attractive in a dynamic market.”
A Mix of New and Old
Whether you’re buying a Park Avenue high-rise or a prefabricated tiny house, buyers expect a lot for their well-earned down payments. In many cities, that means vintage spaces with modern touches.
“Right now in Detroit, we’re seeing a strong interest in condos that blend historic character with modern finishes, especially among first-time buyers, downsizers and investors looking for manageable, design-forward spaces close to the city’s cultural core,” said Erica Collica, associate broker at Max Broock Realtors in Detroit.
“In Des Moines, the hottest ticket remains loft style units in historic downtown buildings, especially the East Village, where exposed brick and high ceilings create a warehouse district cool. Meanwhile, smaller ‘microcondos’ ranging from 400-600 square feet are appealing to first-time buyers — frequently as part of projects with amenities including coworking spaces and rooftop lounges,” according to Jacob Naig, owner of We Buy Houses in Des Moines.
Casey Gaddy, senior agent at Keller Williams Realty, agreed. “Well-managed, fairly priced condos will keep moving,” he said. “But older high-rises with dated interiors? Those are going to need some serious updates or price adjustments to compete in what might be a post-COVID condo renaissance.”
Central Location Is a Must
When the COVID-19 pandemic hit, workers fled the city center to work from home in a tranquil suburb or smaller town. However, one of the prime motivators for buying a condo is a central location mixed with amenities on-site and outside your door.
“We continue to observe demand for condos that are close to primary job markets,” noted Fred Loguidice, real estate expert at Sell My House Fast Wisconsin. “This aligns with the trend we’ve been observing where people want a shorter commute to work and proximity to city amenities. Interestingly, there’s been some research that suggests younger generations actually have a growing preference for condos due to lifestyle demands within dense urban areas.”
“The proximity to infrastructure and downtown provides a high appeal for buyers,” Fisher said. “With the mid-range Philly condo price averaging at $400,000, the prices reflect the demand. Many units go above the asking price, and it’s not uncommon to see units move within days or weeks. Buyers are highly interested in the city-center lifestyle and the security of living in a desirable area.”
“Most of the movement right now is in neighborhoods like Rittenhouse Square and Washington Square, places where the city is right outside your door,” Gaddy said of Philadelphia. “You’ve got award winning restaurants, coffee shops, nightlife, museums, shopping, live theatre, all within a few blocks. It’s where buyers want to be if they’re going to invest in city living.”
Safe Havens
When purchasing a property, security should always be considered, regardless of whether you are single or have a family. It is your duty as a homeowner to figure out how to make your house more secure. That’s not to say condos are immune from security and safety concerns.
“In South Florida, its all about safety right now. Both physical safety and financial safety,” said Jeff Lichtenstein, CEO and broker at Echo Fine Properties. “The Surfside disaster along with rising insurance costs and heavy appreciation (contributing to higher taxes and higher HOA costs) turned the condo market upside down.”
Depending on build and location, homes may provide more privacy and be less susceptible to natural disasters like hurricanes or tornadoes; however, condos are often safer because they have built-in security elements like CCTV, controlled access and on-site personnel. Plus, they have less upkeep considerations.
“Many buyers are choosing condos over single-family homes because of the lock-and-leave lifestyle, lower maintenance and prime walkable locations — not to mention Detroit’s [Neighborhood Enterprise Zone] tax incentives that make owning downtown surprisingly accessible,” Collica said.
More From GOBankingRates
