EXCERPT: Do single-family detached homes appreciate in value faster than condominiums? The standard answer has been: Of course single-family homes appreciate faster. They are what most Americans prefer to live in, so there’s stronger demand. They come with their own piece of land — and we all know that land is a crucial driver of value.
Condos, on the other hand, tend to be smaller on average in square footage and more complicated. They come with boards of directors, association fees, rules and restrictions.
Some metro areas — such as Washington — that have high-cost single-family houses in parts of the city and in the close-in suburbs, are seeing only slight increases in median condo values relative to single-family houses. The D.C. market has experienced modest growth in values during the past five years, but condos have appreciated a smidgen faster: 22.4 percent, compared with 21 percent during the same period for detached single-family houses.
Ralph McLaughlin, chief economist at Trulia, says one reason for the relative change in values is that in many urban markets, condos are “located in areas that are becoming more desirable because they are closer to amenities” — employment, transit and other attractions.