7 Things to Know Before Buying a Condo vs. a Single-Family Home
Key Takeaways
- A condo: a unit plus a share of the building. A single-family home: a unit plus the land beneath it.
- Condos typically cost less upfront. However, the recurring HOA fees can close the cost gap over time.
- Single-family homes have historically appreciated faster than condos. But, the gap varies widely by market and property condition.
- Maintenance responsibility is the biggest lifestyle difference. Condo owners share exterior upkeep. Single-family owners handle everything themselves.
What Does Your Forever Home Look Like?
Choosing between a condo or single-family home is one of the first forks in the road for most future homeowners. A condo may mean less maintenance and fewer weekend chores, while a single-family home can give you more privacy and control over the property.
Every year, our team at Excelsior Realty talks to buyers weighing condos vs single family houses. And while it’s natural to think about the price, we’ll encourage you to actually think about how you want to live.
If you’ve been browsing homes for sale near Lake Minnetonka and can’t decide which direction fits your lifestyle, here’s what to weigh before you make an offer.
What’s the Difference Between a Condo vs. a Single-Family Home?
Let’s talk about what you own in each case.
- A condo buyer owns the interior of their unit and a share of the building and common areas, which an HOA maintains.Â
- A single-family homeowner owns the structure and the land it sits on, with no shared walls and no association dictating exterior changes.
According to the Zillow Home Value Index, in September 2025, the standard U.S. single-family home was valued at $365,751, while the standard condo was valued at $345,216: that’s a difference of $20,535.
7 Things to Know Before You Decide Between a Condo vs Single-Family Home
Here’s what to consider when choosing between a condo and a house.
- Ownership structure: A condo gives you the unit; a single-family home gives you the unit and the land beneath it.
- Monthly costs: Per the HOA Leadership Network, Homeowners’ Association (HOA) fees in Minnesota are an average of $269 a month, depending on the building and amenities. Buying a single-family home can still mean an HOA fee if it’s part of a planned community, though it’s usually lower and covers less than a condo association does.
- Maintenance responsibility: Condo associations typically handle maintenance of shared areas and some exterior elements. Owners of single-family homes are responsible for largely maintaining their own property (the extent of maintenance costs you may owe varies by location).
- Space and privacy: This is a pretty big distinguishing factor. Single-family homes naturally come with more square footage. And, you get private outdoor space. If you choose a condo, you trade that for shared walls but often, a more central location.
- Financing requirements: Buying a condo can involve additional lender requirements because the lender may review the condo association as well as your finances. Factors such as the percentage of units occupied by owners, the association’s financial reserves, and its insurance coverage can affect whether a lender will approve the property. If the condo project does not meet a lender’s requirements, you may have fewer financing options.Â
- Appreciation potential: Recent data from Zillow indicated a difference in how single-family homes and condos perform. From September 2024 to September 2025, single-family home values increased by 0.2%, while condo values dropped by 1.5%.Â
- Lifestyle fit: A condo may suit buyers who want less day-to-day maintenance, while a single-family home may appeal to those who want more space and control over their property.Â
Which Is the Better Long-Term Investment? Condo vs Single-Family Home
The better investment depends on what you want from the property and what you are willing to take on as an owner.
| If you value… | A condo may be the better fit | A single-family home may be the better fit |
| Building equity | You want to build equity without taking on as much property maintenance | You want more potential for long-term appreciation from both the home and the land |
| Maintenance | You want the HOA to handle certain shared and exterior maintenance | You are comfortable managing repairs and upkeep yourself |
| Space | You do not need a large home or private yard | You want more living space and outdoor space |
| Control | You are comfortable following HOA rules and sharing decisions about common areas | You want greater control over your property and how you use it |
| Location | You want to buy in a desirable area where condos offer a more accessible entry point | You can afford a single-family home in a location with strong demand |
| Long-term goals | Convenience and lower upkeep matter as much as potential appreciation | Maximizing long-term equity growth is a higher priority |
Find the Right Fit with Excelsior Realty
A single-family home may give you more room to build equity over time, especially in a strong market. But that does not make a condo the wrong choice. A well-managed condo in a great location can be a smart buy, particularly if you value less maintenance (and do not need a large home).
Excelsior Realty has helped buyers across the Lake Minnetonka area weigh the decision between a condo and a single-family home since 2004. If you need help deciding, contact our team at (952) 474-2999 or hello@excelsiorrealty.com.
Visit us: 386 Oak St, Excelsior, MN 55331.
FAQs
1. Is it harder to get a mortgage for a condo than a house?
Getting a mortgage for a condo can involve additional requirements because lenders may evaluate both the buyer and the condo association. Depending on the loan, they may review the building’s owner-occupancy rate, financial reserves, insurance coverage, and other factors. If the condo project does not meet the lender’s requirements, financing can be more difficult.
2. Is a single-family home always the better choice for families?
A single-family home is not always the better choice for families. Some families prefer the extra space (inside and outside) and privacy that a house can provide, while others may value the lower maintenance and amenities that a condo offers. The right option depends on the family’s budget, lifestyle, space needs, and priorities.
3. How do HOA fees affect the value of a condo?
HOA fees can affect both the affordability and resale appeal of a condo. Higher fees may make a property less attractive to some buyers, especially if they cover few services or have increased significantly over time. On the other hand, reasonable fees backed by healthy reserves and well-maintained common areas can support the building’s condition and make ownership more predictable. Buyers should look at what the HOA fee covers rather than judging the amount on its own.