Condo Corner: Are Condos Still a Good Investment?

Are Condos Still a Good Investment?

I have always thought condos can be a great entry point into homeownership, especially in King and Snohomish Counties where the price difference between a condo and a single-family home can be significant.

But lately, I think the question deserves a little more thought.
Are condos still a good investment? My answer is yes, but with some important caveats.

Because while condos can offer a much more affordable path to homeownership, we also have to acknowledge something that anyone who has tried to sell a condo recently already knows: condos have become harder to sell.

The Price Difference Is Significant

Let’s start with one of the biggest arguments in favor of buying a condo: affordability.

In King County, July 2026 sales put the median price of a single-family home at just under $1 million. The median condo price was around $518,000.

That’s nearly a half-million-dollar difference.

And while prices vary tremendously depending on where you are looking, the same basic affordability advantage exists in Snohomish County where the July 2026 median price for a condo was $499,00, compared with $755,000 for residential homes.

For someone who wants to own in Seattle, Bellevue, Kirkland, Shoreline, Edmonds or another higher-priced area, buying a condo can make homeownership possible years earlier than waiting until they can afford a single-family house.

And I think that matters.

Renting vs. Buying: You’re Building Something

I don’t believe buying is automatically better than renting. There are absolutely times in life when renting makes more sense.

But if you are planning to stay put for several years, there is an important difference. With rent, your monthly payment gives you a place to live. With a mortgage, part of your payment is also paying down something you own.

As a simplified example, take a $500,000 condo with 20% down and a 30-year mortgage at 6.5%. The principal and interest payment would be about $2,528 per month. You’ll still need to pay property taxes and let’s estimate a $550 per month HOA dues (which do include water, sewer, and garbage utilities) and your total monthly housing expense could be somewhere around $3,650 a month.

Compare that with Seattle, where the average two-bedroom apartment is currently renting for about $2,951 base price. When including the costs of water, sewer, and garbage estimated rent would be $3,250 a month. That’s a meaningful difference of $400 per month.

Over five years, the hypothetical renter would spend about $195,500 in rent, assuming for simplicity that the rent never increased.

The condo owner would spend more each month, but during those same five years they would also pay down approximately $25,500 of their mortgage principal. They would still own the condo and have the equity from their original down payment, the principal they paid off and potentially any appreciation in the property’s value.

Of course, that doesn’t mean the condo owner automatically comes out ahead. They started with a $100,000 down payment, have higher monthly expenses, and will eventually have costs associated with selling. Appreciation isn’t guaranteed either.

But that’s really the difference between the two choices.

Renting may cost less today. Buying gives you the opportunity to turn some of your housing expense into an asset you still own tomorrow.

That’s why I don’t love the old saying that “rent is throwing money away.” It isn’t. You are paying for a place to live, flexibility and freedom from many of the costs and responsibilities of ownership.

But if you are planning to stay put for several years and can comfortably afford the higher monthly cost, buying a condo gives you something renting doesn’t: the opportunity to build equity.

Your first home doesn’t have to be your forever home. A condo can be a stepping stone: buy something you can comfortably afford, live there for several years, build equity, and eventually use that equity toward your next home.

At least, that’s the theory.

The Catch: You Have to Be Able to Sell It

This is the part of the conversation I think we need to have more often.

An investment isn’t just about what you pay for something or how much it appreciates. It also matters how easy it is to sell when you are ready to move on.

And right now, our condo market is challenging.

At the end of July, King County had about 2,579 condos for sale but only 437 condo sales closed during the month. That worked out to approximately 5.9 months of condo inventory, compared with 4 months a year earlier.

Seattle itself showed an even bigger divide: approximately 6.5 months of condo inventory compared with 3.4 months for single-family homes. Condos were taking an average of 46 days to sell compared with 20 days for houses.

That’s a pretty significant difference. So why aren’t more people buying condos? There probably isn’t one answer.

Higher interest rates have reduced buying power. HOA dues have increased in many buildings. Insurance and financing requirements have become more complicated. And the pool of first-time buyers, the people we often think of as natural condo buyers, has shrunk nationally. First-time buyers now represent just 21% of home purchases, and their median age (according to the U.S. Census Bureau Data Analysis) is estimated at 35.

Meanwhile, older and equity-rich buyers make up a larger share of today’s market, and many of those buyers have the financial ability to choose a single-family home if that’s what they want.

There’s a lot more to unpack there and I plan to in future Condo Corner posts, but the result right now is fairly simple:

There are more condos for sale than there are buyers looking for them.

But That Can Be Good News If You’re the Buyer

Here’s the flip side.

The exact market that is frustrating condo sellers can create an opportunity for condo buyers.

When you aren’t competing against ten other buyers, you have room to think. You may have room to negotiate on price, closing costs or other terms. You can compare buildings. You can look at the HOA documents. You can be picky about parking, location, condition and monthly dues.

And most importantly, you may be able to buy into a neighborhood where a single-family home would be completely out of reach.

That’s a pretty compelling benefit.

Think About Resale Before You Buy

I still believe condos can be a good investment. But I wouldn’t buy one simply because it’s cheaper than a house. I’d think about the next buyer before you become the current owner.

Is there parking? Is the location desirable? Are the HOA dues reasonable for what they include? Does the unit have something that separates it from all the others in the building? If you had to put it back on the market five or seven years from now, who would want to buy it?

I would also be much more cautious about buying a condo if you already know you’re likely to move again in two years than if you expect to own it for seven or ten.

So, Are Condos Still a Good Investment?

For the right buyer, I think they absolutely can be.

A condo can dramatically lower the financial barrier to homeownership. It gives you an opportunity to build equity instead of continuing to rent. And today’s slower condo market may give buyers an opportunity to purchase at a price and on terms that simply weren’t possible a few years ago.

But a condo isn’t automatically a good investment just because it’s real estate.

You need to buy the right condo, at the right price, with a realistic expectation of how long you will own it and with an eye toward eventually selling it.

Because buying the condo is only half of the investment.

Someday, you have to sell it too.