The Future of Condos

When the Great Recession hit in 2008, many homeowners lost their properties in foreclosures. A few years later, young working professionals and families looking to buy homes found that housing prices had gone up. Purchasing a home was no longer affordable, nor was it financially advisable for thousands of people. Fortunately, by then there were alternatives to the traditional one-family home. Enter condominiums, an option for prospective buyers who don’t mind downsizing on space and gaining perks.

Popularity

Condominiums gained popularity as single-family dwellings became less affordable. They are especially popular in places where property is extremely valuable, including urban centers and popular vacation destinations. If you live in a zone where space is at a premium, buying a single-family home may simply not be an option. For those that still want to own, condominiums are the answer. They open the idea of ownership up to different demographics and allow first-time buyers to enter the market.

Predictions

The popularity of condominiums is likely to increase over the coming years, especially in cities. Right now, urban centers all over the United States are seeing increases in new high-rise developments that free-up space. Condominiums will appeal to different demographics as prices for single-family homes continue to increase. Some of those demographics are those who can’t afford single-family homes, including young professionals and even young families – Generation Y and Millenials are less likely to be put off by the lack of space and privacy in a condo facility. Immigrants are also likely to invest in condo units as opposed to homes, given that they are more likely to land and stay in cities.Even Baby Boomers are getting onboard, opting to downsize and sell their family homes in the suburbs in favor of moving to condo units.

Pros

With condos come some serious pros. Firstly, they’re far more affordable than a single family home, offering first-time buyers a way into the housing market. Condo owners are also off-the-hook when it comes to maintenance and landscaping. For those that don’t have the time or energy to fix the roof when it breaks or cut the lawn every week, this is a huge advantage. Professional security in condominium complexes is another selling point. Most have gated entries, concierges, and sometimes even security guards. The lack of isolation also makes condominium living safer during emergency situations. Finally, today’s condos come with some serious perks: organized activities, swimming pools, gyms, and even guest apartments for when your in-laws are in town.

Cons

Unfortunately, buying a condo isn’t all positive. Condo owners often pay Homeowners Association Fees, which pay for all those fancy amenities and maintenance issues. Although they vary from complex to complex, an average figure is $300 per month, making you wonder whether it’d be cheaper to live on your own and simply pay for the amenities and services you actually use. Condos may also be difficult to sell when it’s time to move on, as they are slow to appreciate in value and usually don’t have unique selling points.