When the time comes to buy their first home, many Americans need to carefully weigh a variety of factors before deciding on which type of property to purchase. For the most part, it’s a decision that’s wrapped up in their lifestyle and location.
Owning a house has been a traditional, ubiquitous goal under the American dream for plenty of people who envision not sharing walls with neighbors and having a yard for their kids and pets to play in. At the same time, for a growing population of people — mostly city dwellers — the benefits of condo life are hard to pass up. It’s a path to leaving the rental market that typically involves a lower initial cost of entry and allows urban folk to stay close to the amenities they love.
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However, while most of the factors that dictate whether a house or condo is the right choice for you are personal in nature, one important question is more cut and dry: Which constitutes the better investment? After all, owning a home isn’t about just having a place to live. It’s also about owning real estate that will increase in value over time, adding diversity to your investment portfolio.
That’s why GOBankingRates analyzed the value and long-term payoff of owning a condo versus a single-family house. The study examined the 50 largest cities in America and used Zillow’s November 2019 data on home values and growth rates over the last five years to get a better sense of how condos and single-family houses might perform as an investment.
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Granted, trends in home values can change dramatically, and you might be compelled to choose a condo over a house — or vice versa — for other reasons specific to your situation. But understanding how real estate investments compare to each other based on current trends in the housing market should still play a part in any home buying process, even if it’s not the deciding factor. So, look through America’s 50 biggest cities, placed in alphabetical order, and see whether a condo or a house is the best way to invest your savings.
Last updated: May 19, 2021
