The typical single-family home sold in the U.S. this year was purchased for an average of 17.3 percent more ($58,000) than the typical condo, according to a new report from Redfin.
Redfin said that’s up from 15.4 percent last year and represents the largest premium since at least 2013.
According to the report, the median sale price of single-family homes increased 15.5 percent year-over-year in October. The median sale price of condos in October grew 9.9 percent. Additionally, the typical condo spent 36 days on the market last month, compared with 27 days for the typical single-family home. And less than a quarter (22.8 percent) of condos sold for more than their listing price, compared with 36.6 percent of single-family homes.
“Condos sales are rebounding because buyers are finding great deals,” Redfin Chief Economist Daryl Fairweather said in a release. “Families are fleeing cities in search of more space in the suburbs, which has presented an opportunity for millennials who are looking to become homeowners but don't need extra bedrooms or a backyard.”
Redfin said single-family homes in Fort Lauderdale, Fla., sold for an average of 38.3 percent more than condos in October—the largest premium of the 86 metros in this analysis. Fort Lauderdale was followed by Bakersfield, Calif. (35.8 percent premium); Lakeland, Fla. (34.3 percent premium); Oklahoma City, Okla. and Tucson, Ariz. (both at 30.3 percent premium).
“Before the pandemic, it was challenging to find a condo in Seattle for less than $500,000, but now there are plenty selling for under $400,000,” Redfin real estate agent Forrest Moody said. “The people who are buying condos now are the people who couldn’t afford to buy one a couple of years ago because prices were so high. I recently sold a condo that was within walking distance of Amazon’s headquarters for $510,000. Condos in that building normally go for $550,000 and up.”
In San Antonio, Redfin said there’s been a resurgence of high-end condos in the downtown area.
“There are more people buying condos in San Antonio than I’ve ever seen before,” Redfin real estate agent Jim Seifert said. “Young people who work in tech and health care are moving here from Seattle, California, Washington, D.C. and Maryland because San Antonio is so much more affordable, and they have a bigger appreciation for downtown living than the average person from Texas.”