You’ve finally decided—it’s time to buy your very first home. As you browse through property listings, you’re faced with a dizzying array of choices. Each one boasts different layouts, features, and square footage. Some offer plenty of space and privacy from the neighbors, while others are tightly packed together.

Then the real question arises: should you go for a condo or a traditional house? What sets them apart? Both come with their own sets of pros and cons. But which one aligns better with your lifestyle and needs?

It’s the ultimate showdown: condo versus house. While it may not be a battle royale, the decision is an important one. Let’s dive into the details of each to see which might be the smarter option for you!

What Is a House?

You might be wondering, Isn’t the difference obvious? But before we dig deeper, it’s helpful to clearly define what a house is. A house is a stand-alone structure—meaning it doesn’t share any walls with neighboring residences. Typically, it comes with its own yard and driveway, and you own both the building and the land beneath it, including any additional structures like a detached garage or guest suite.

While you might encounter attached homes such as row houses in urban environments, the more familiar picture is the suburban home sitting on a sizable plot of land with a private lawn and perhaps a few trees.

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What Is a Condo?

A condominium, often referred to as a condo, is essentially a personal apartment within a shared building or complex. It generally offers less living space than a detached house and is one of several units within a larger structure.

The upkeep of the building’s exterior and communal amenities—such as gyms, clubhouses, parking structures, and pools—is handled by a homeowners association (HOA) or condo board. What these facilities include will depend on the complex’s scale and geographic location.

Condos appeal especially to first-time buyers, people looking to downsize, and real estate investors. They tend to be more budget-friendly than houses, although the mandatory HOA fees can impact the overall cost significantly.

What Are the Costs of a Condo or a House?

Now, let’s get into the nitty-gritty—finances.

The sticker price is only the beginning. Homeowners also need to budget for things like insurance, taxes, mortgage insurance (especially if the down payment is under 20%), and possibly HOA fees.

The takeaway: Before you make a purchase, be sure to account for all related costs, whether you’re leaning toward a condo or a single-family home.

Condo Costs

Condos generally come with a lower price tag than detached houses. Their smaller size contributes to reduced costs, and maintenance tends to be more affordable since your responsibilities are limited to the interior of your unit. You won’t be handling the roof, siding, or landscaping—those are typically covered by the HOA.

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Keep in mind, though, that HOA fees can be substantial, especially in buildings with many shared features. Luxuries like pools, gyms, dog parks, parking garages, and 24/7 security increase the monthly dues. If you’re not planning to use these extras, let your agent know—it could save you a lot.

Another benefit? Lower insurance premiums. Since you’re only insuring the inside of your unit, your costs will be lower than with a house. The building’s exterior is usually insured through the HOA, funded by your monthly dues. Of course, if you’re cooking a frozen turkey and accidentally set your kitchen ablaze, that’s where your personal insurance will come into play.

House Costs

Single-family homes tend to be pricier, and for good reason—they offer more space and you own the entire structure along with the land it’s on.

Because of that, insurance costs are higher—you’re covering both the interior and exterior. Plus, maintenance is all on you. That includes yard work, roof upkeep, and general repairs. Love yard work? That’s great. If not, you may need to hire help, which adds to your regular expenses.

Property taxes are calculated the same way for condos and houses. But since houses often come with more land and square footage, expect your tax bill to be bigger.

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What Are the Pros and Cons of Living in a Condo or a House?

Unlike comparing townhouses to condos—which are relatively similar—the contrast between condos and detached houses is much more significant. Condos are compact and community-oriented. Houses offer more independence and land. While many new housing developments also include HOAs, owning a house still means those walls and that lawn are entirely yours.

Here are some key differences to think about:

1. Life in a condo means living closely with others.

Shared walls and communal spaces mean you’ll naturally have more contact with neighbors. From passing each other in the hallways or mail room to attending HOA meetings and using shared amenities, you’ll likely be part of an active community.

This can be fantastic if you enjoy socializing and the community is well-run. But if you prefer privacy or dislike frequent neighborly interactions, it might not be the best fit.

Pro: Plenty of chances to connect with others.

Con: Not all neighborly encounters are pleasant.

2. Houses offer more seclusion.

A detached home, depending on its size and lot, can give you significant personal space. This added privacy is often accompanied by higher costs for the privilege of owning more square footage and land.

Still, being too isolated might not suit everyone. Some homeowners enjoy the balance of privacy with neighborly support—especially when they need someone to keep an eye on their place while traveling.

Pro: Full control and private enjoyment of your property.

Con: Greater responsibility and more to manage on your own.

3. Condo HOAs hold a lot of power.

Living in a condo means agreeing to the HOA’s rules—down to specifics like curtain colors. Before buying, thoroughly review the association’s guidelines and make sure you’re comfortable with them. If they seem overly strict or unreasonable, consider another complex.

Well-managed HOAs can make condo ownership smoother and help boost property value. A poorly run HOA can create frustration and reduce your investment’s appeal. Be sure to check the owner-to-renter ratio too. High numbers of renters may lead to less commitment to maintaining shared spaces.

If you’re looking at houses in HOA-governed neighborhoods, those rules tend to be lighter—perhaps regulating mailbox designs or fencing options. These HOAs generally focus on community upkeep and common amenities, and their fees are usually lower than condo HOAs, unless you’re buying in a luxury community.

Pro: A responsible HOA enhances your experience and protects your investment.

Con: A bad one can be a serious headache.

Are You Ready to Buy a Condo or a House?

No matter what type of property appeals to you, it’s essential to first consider your financial readiness. A home should be a blessing that helps you build wealth—not a financial burden that sets you back.

Make sure you’re debt-free, have an emergency fund that covers three to six months of expenses, and can afford a solid down payment—ideally 20%. While 5–10% might get you in the door, you’ll likely be required to pay private mortgage insurance (PMI) if you put down less.

Once you’re financially prepared, stick to the 25% rule: Your monthly mortgage payment should not exceed 25% of your take-home pay. Use our mortgage calculator to see how much house you can afford comfortably.

Get an Agent in Your Corner

Ready to make your move—whether to a condo or a house? Don’t try to navigate the process alone. Work with a skilled real estate professional who knows your local market inside and out, and who’s committed to helping you find the perfect property at the right price.