The mathematics and economics of developing, building, marketing, and buying residential condominiums assume, in broad terms, that they're less costly than single-family homes.
This analysis from CoreLogic senior economist Kristine Yao puts this assumption to a market-by-market test, and takes aways some surprising insights. Yao writes:
When CoreLogic analyzes home sales between those located within five miles of the metro area’s principal city central business district (CBD) and those located outside, using the same 25 markets, the median price of condos within the core was more than double the median price of condos outside of the core at $389,000 and $192,000, respectively. Single-family detached homes saw a less dramatic increase of only 9 percent for a central location ($295,000 versus $270,000).
Which begs the question, are condos more affordable? And will they continue to be if they're appreciating faster than single-family detached homes in the same markets?