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Are Houses Or Condos A Better Investment

Performance Property Real Estate Question

Q: Do you think houses or condos are a better investment over time? Kendall, Rahway, NJ

A: Historically, single family homes appreciate faster than condos, although repair and maintenance costs tend to be higher for homes than they are for condos. Higher appreciation for homes over condos is due in large measure because demand has tended to be higher for single family homes than for condos and condos have tended to have lower maintenance costs because many of the overall costs for condos are shared by other condo owners. However, broad averages can be very misleading, and you can easily find examples of condos with higher maintenance costs than single family homes just like you can easily find examples of single family homes with lower appreciation than condos over time. Also, buyer preferences change and evolve over time. As people live longer after retirement, it’s possible that condos and townhouses become more desirable for more people which could increase their projected appreciation over time versus home appreciation. Thanks for your question, Kendall.

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