Condo vs. apartment: Which is best for you?
The decision to rent or buy a home will impact your life for years to come, and for many first-time homebuyers, a condo is a natural entry point into homeownership. But how does buying a condo differ from renting? What’s the difference between a condo and an apartment anyway? Let’s take a closer look.
Condo vs. apartment: What’s the difference?
The biggest difference between a condo and an apartment is ownership. An apartment is generally defined as a residence that is rented, often as part of a larger residential building. A condo can be similar in structure to an apartment — usually a unit within a larger residential building — but condos are owned instead of rented. And, whereas the property taxes of a condo are paid by the owner, property taxes for apartments are paid by landlords, not renters.
Because the structure of condo and apartment communities is similar, they often have comparable amenities and locations. Both kinds of units may come with benefits like a pool, fitness center, trash disposal, manicured green spaces and more.
However, a condo owner is building equity, paying monthly homeowners association (HOA) dues and responsible for all interior maintenance. An apartment renter, on the other hand, pays rent each month, doesn’t build equity and relies on the landlord to address maintenance issues.
What to consider when deciding between the two
- Cost: The cost of renting an apartment is fairly straightforward. Typically, you pay a deposit when you begin your lease, and you might also be required to pay the first and last months’ payments upfront. Then, you make monthly payments for the term of your lease agreement. The costs of buying a home, whether it’s a condo or not, are a bit more involved — and expensive. You’ll have to make a down payment and pay closing costs for your mortgage upfront, as well as monthly mortgage payments and HOA fees (which vary depending on the amenities and services offered).
- Maintenance: When you’re renting an apartment and something goes wrong (think a leaky faucet or a broken air conditioner), the repair is typically the landlord’s responsibility. However, when you’re a condo owner, you’ll foot the bill for home repairs.
- Amenities: Condo and apartment complexes tend to be structured similarly — whether high-rise buildings or just a few floors — but they often come with very different amenities. Think about what amenities are most important to you, such as a doorman, a pool, a gym or green space, and compare what the various communities in your area offer.
- Location: Location is an important factor when deciding where to live, no matter what kind of housing you’re looking at. Apartment and condo buildings often have small structural footprints, so you’ll likely find both options in urban cities and densely populated suburbs (they’re less common, however, in rural areas). Both types of buildings are often situated near offices, shopping, restaurants and more.
- HOA rules: When considering an apartment vs. a condo, rules will be a factor. Both types of communities usually come with “house rules” about behavior in common areas. Apartment landlords can also dictate what renters can do inside their unit and might restrict things like hanging art or painting walls. On the other hand, condo owners can generally decorate the inside of their home however they choose.
Condo pros and cons
A condo is typically a more affordable entry point to homeownership than a single-family home. And as a homeowner, you’ll build equity over time and have access to tax benefits that a renter wouldn’t.
Pros
- Affordability: Condos’ lower prices make them an appealing option, especially for first-time homebuyers or those looking to downsize. The median sale price of an existing (not new construction) condo in February 2025 was $335,100, according to the National Association of Realtors, while the median for a single-family home was $402,500.
- Low maintenance: A condo association or HOA usually takes care of maintenance for the property exteriors and common areas, so you won’t have to handle yard work or similar projects on your own.
- Central locations: Most condo communities are in close proximity to shopping, recreational areas and public transportation. If walkability is important to you, condo life could be a good fit.
Cons
- Dues: Condo owners usually have to pay monthly fees, which can increase over time. These are often based on the level of amenities offered — for example, a complex with a swimming pool and tennis courts will likely charge more than one without. According to Census data, the mean HOA or condo association fee in the U.S. is $243 per month.
- Lack of privacy: Because condos typically share walls and common areas with neighbors, you won’t have as much privacy or control over noise as you would in a freestanding home.
- Rules: Even though you own the condo, you are bound by the association’s rules, which could limit how you use or decorate the property. You might not have a say, for instance, in how you can landscape or even what kinds of pets you can have.
Apartment pros and cons
Apartments are a smart choice for those who don’t want the responsibility and expense of homeownership, or for those who aren’t likely to stay in the same town for very long.
Pros
- Flexibility: An apartment is a good option if you don’t plan to put down roots in a particular area long-term. For instance, if you only intend to live in a city for a year or two before moving on, renting is probably smarter than tying yourself to a mortgage.
- Low or no maintenance: In general, your landlord is in charge of maintaining the property while you rent it. (But be sure to check your lease to see what maintenance, if any, you’re obligated to do yourself.)
- Prime locations: Like many condo complexes, apartment communities are often located in or near city centers, with easy access to restaurants, shopping and more.
Cons
- No equity: If you’re renting an apartment, you’re paying the landlord every month instead of building equity in a major asset, like homeowners do.
- Noise: Depending on where you rent, you could find yourself living very close to your neighbors, and even to outside foot traffic, which can come with noise and privacy issues.
- Less sense of community: While homeowners tend to stay put for a while, and have a vested interest in keeping their home a nice place, renters come and go frequently. That could mean less of a community feel and less opportunity to get to know your neighbors.
Bottom line
If you can afford the upfront and maintenance costs and plan to stay put for a while, a condo is usually a good investment. On the other hand, apartments are ideal for people who want the flexibility to relocate, aren’t ready to buy a home just yet or don’t want the responsibilities of ownership.
