It appears that millennials and other first-time home buyers have evolved. Recognizing how difficult it is to save for a down payment, these buyers are likely becoming attracted to condominiums (and townhomes) for their affordability and convenience. As of late 2015, condominiums have become more than 40 percent of first-time home purchases compared to 28 percent in 2001. These buyers have typically been long-time renters who are older, most likely unmarried, and purchasing more expensive homes than they were in the past several decades.
As popular as they’re becoming again, nationally, condominiums account for just slightly over 11 percent of new construction today. And although condos only represent a small share of the total housing inventory in major metros, buyers who have decided to purchase a condominium may face stiff competition when making an offer.
Despite taking the hardest hit in the housing bust, condominiums are recovering the fastest with their values outpacing those of single-family homes. Condos offer a low-maintenance lifestyle and urban locations in healthy job markets, condominiums are obviously becoming popular again among millennials and other first-time home buyers.
The relative affordability of condominiums can provide an ideal way for buyers take their first step toward home ownership, and condo fees aren’t slowing down this pace as those fees typically include exterior property insurance, roof and siding replacement, lawn and tree care, and often also includes a community pool with club house, fitness center, and many additional amenities that cost regular homeowners a lot of money each month in upkeep!