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Just like townhome demand is rising so is condo demand. The first quarter proved to be the best quarter for condo construction since the third quarter of 2008—in about 14 years, according to the National Association of Home Builders.
As buyers search for greater affordability, they may be drawn to condos. Still, the median existing condo and co-op sales price was $340,000 in April, an increase of 13.1% compared to a year earlier, according to the National Association of REALTORS®. But for comparison, the median existing single-family home price was $397,600 in April, up 14.8% annually.
“The condo market has bounced back,” Chance Glover, a Redfin manager in Boston, told the media earlier this spring. “People are no longer afraid to live downtown, close to the crowds—and they often prefer it, because they’re close to the office and all the amenities of the city. Rising prices are pushing single-family homes out of reach for a lot of buyers, so condos are affordable in comparison.”
The National Association of Home Builders expects multifamily building to stabilize overall as construction moves further out from urban cores and renters seek larger, more affordable housing. “Gains for condo construction could also lift multifamily unit size,” Robert Dietz, NAHB’s chief economist, writes on its association’s blog.