Condos Still a Popular Option for Buyers

With lifestyle and affordability driving demand, more than half of all condo buyers say they didn’t consider any other style of housing, according to a recent National Association of Home Builders' survey of condo buyers.
By: Camilla McLaughlin: REALTOR Magazine Online
Continued demand by both young, well-paid professionals (singles or couples), who want to own their first home close to urban amenities, and older households, who want to remain in the suburbs but shed the maintenance burden of a house, is expected to stabilize the condo market.

Even though market conditions are below levels of a year ago, condo builder confidence is on the rise, according to NAHB’s quarterly survey of multifamily builders and developers. About half — the highest number since the end of 2005 — say they’re optimistic about market conditions over the next six months. Additionally, the number of prospective buyers looking at condos was up from the previous quarter.

Of condo buyers, more than one-half, 54 percent, have never owned a home, with the greatest proportion of first-time buyers, 86 percent, among those under 35. Preferences ranged equally among all condo types — low rise, mid rise, high rise, and town house — for all groups except previous condo owners who gravitate toward mid- and high-rise buildings.

Most-Desired Condo Locations

Respondents to NAHB's survey identified these locations as their preferred places to buy a condo:

    • Close-in suburbs: 46%
    • Outer suburbs: 28%
    • Inner city: 19%
    • Rural areas: 5%

Motivations for Buying a Condo
Why go condo? It depends. Respondents say these are the reasons why they opted for a condo over a traditional single-family home or other housing style:

    • Price and location: 70%
    • Design and size of the unit: 66%
    • Desirability of a particular neighborhood: 64%
    • Good investment: 57%

Fewer than half mentioned low condo fees, parking, pool, and tennis courts, the proximity of public transportation, porches, and valet services as important motivations.

Common Condo Amenities

Just under half of the buildings offered swimming pools and cable/satellite TV. About one-quarter offered each of the following: a fitness room, Internet access, a BBQ area, and a dog walking area.

Amenities used most often by respondents included: cable/satellite TV, 88 percent; Internet, 82 percent; swimming pool, 72 percent; and fitness room, 64 percent. Even though fewer than 20 percent of properties offer concierge services, such services are highly used, with 71 percent of owners saying they use them.