Buyers paid a nationwide average of 6.7% less for co-op, condo, and townhouse units versus comparable single-family homes in 2021, says the outlet—a statistic that understates the price difference, since multifamily home types are typically concentrated in the country’s highest-density, highest-cost areas. To wit; the analysis reveals that 84.1% of all condo/co-op/attached townhouse purchases in 2021 were in just 6% of U.S. counties.

Meanwhile, buyers are finding they have to save for longer - and stretch their budgets farther - to buy a home of any type: roughly 65% had to save up for at least a year, according to Realtor.com, and 71% exceeded the initial budget for their home purchase. With price growth of multifamily homes lagging behind that of single-families nationwide over the last decade, condos, co-ops, and townhomes may continue to provide home-seekers with a more affordable option. 

City vs. Suburb

For buyers committed to urban living in a county center, purchasing a condo, co-op, or attached townhouse is a significantly cheaper option than single-family ownership. According to the analysis, in 2021 multifamily housing offered an average 33.2% discount compared to single-family homes in counties central to New York, Boston, Chicago, and Seattle.   

However, that city condo or co-op is still going to be more expensive on average than an outlying single-family home—at least for now. In the states studied, the typical single-family home in a non-central county was 37.4% less expensive than the typical condo in a central county in 2021. 

The continuation of pandemic-era migration out of dense urban areas to suburbs and exurbs with larger homes and more space might shrink this price difference, given that single-family homes in outlying areas are the fastest appreciating category when comparing pre-pandemic 2019 data to 2021. 

Case Study: Chicagoland

In central Chicago’s Cook County, 52.4% of all sales were of the condo/co-op/townhouse variety in 2021 and averaged 10.4% below the price of comparable single-family homes in the county. By contrast, in suburban DeKalb County, multifamily homes made up only 7.2% of sales, but they came in at an average 18.2% discount versus their comparable single-family homes. The average single-family home in DeKalb County was 9.0% less expensive than a condo, co-op, or townhouse in Cook County in 2021. Between 2019 and 2021, condo/co-op/townhouse sale prices in Chicago increased by 11.2%, while single-family homes in the area increased by 19.0%. 

Looking Ahead

According to the study, as of May 2022 condos, co-ops, and townhomes made up 21.4% of typical monthly listings nationwide and listed 0.5% below the asking price of comparable single-family homes—the lowest discount in May in the data’s history. Multifamily home price growth outpaced single-family home price growth at a national level in May 2021 and May 2022. The shrinking discount and faster price growth are likely due to the high concentration of multifamily housing in high-priced areas, as well as increased demand for such housing, notes Realtor.com. Active multifamily listings were down 10.5% year-over-year in May, while single-family home active listings were up 14.5% year-over-year. Realtor.com suspects that increased condo demand kept multifamily inventory low while single-family home inventory made progress towards pre-pandemic levels. The number of condo, co-op, and townhome pending listings is down year-over-year, but up 50.3% compared to 2017-2019 levels, indicating the popularity of this housing type as the market has gotten less affordable.