Ever since the recession, condos have suffered under the stigma of low and slow appreciation. Now, says a new report from Zillow, condos are coming back with a vengeance, outpacing single-family home values. And Dallas-Fort Worth is No. 1 on the list, with a staggering 20 percent growth from this time last year.
“The housing bust hit condo values hard, and over the past few years, buying a condo wasn’t always considered a good investment compared to a single family home,” says Zillow chief economist Dr. Svenja Gudell. “But that’s changing, and condos increasingly represent a strong-performing, often affordable choice, particularly for first-time buyers interested both in homeownership and in keeping a lower-maintenance, city lifestyle."
Nationally, condos are appreciating at 5.1 percent annually, while single-family homes are at 3.7 percent. In DFW, single-family homes have appreciated 14.9 percent over the past year. Increasing rents, limited inventory of low-value homes, and the popularity of urban life have prompted this runaway condo growth.
“However, as younger buyers compete for homes in urban neighborhoods, it’s important to consider some of the additional costs of condo life, especially homeowner association fees, when weighing options,” says Gudell.
To help compare, condo values decreased by 11.1 percent annually in November 2008. Single-family homes decreased 6.5 percent around the same time.