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Condo vs. Home, What is the best investment?

Posted by Mike Parsons
August 18, 2006 at 07:20 PM

The answer is, It Depends! Location. Location. Location. 3-5 years ago condominium complexes like Bethel Village (corner of Sawmill and Bethel) appreciated a little more per year than many well-to-do, surrounding single family homes. Due to economies of scale, and developers finding greater profit in condo development, we have seen many new condominium projects built on Columbus's North arch and downtown areas. This has transplanted a lot more condo inventory into the marketplace in the last couple years. When supply rises, demand falls. When demand falls, price appreciation will slow.

So although it hasn't been much of an issue in the past, I would expect the majority of condo complexes to lag behind the price appreciation of homes over the next 4-5 years. Not a big gap, a decent expected appreciation ratio would probably be 3% per year for condos, 4% per year for single family homes. (This is a generality and there will be exceptions per different locations, styles and price ranges). Having said that, there is definitely a value in leading a low maintenance care-free condo lifestyle.

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