How Much Does A Condo Cost In 2023?

Miranda Crace

5 - Minute Read

UPDATED: Mar 6, 2023

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Are you thinking of buying a condominium? Before you make a decision, it’s important to understand what you're buying and how much it will cost you.

Condos are often appealing to buyers because they generally pay less for a condo than a single-family home, and they often come with amenities, like swimming pools or fitness centers. However, several factors affect how much you pay for a condo beyond the price of a unit. So just how much does a condo cost in total?

We’ll take a look at the true cost of condo ownership, including how much you can expect to pay in condo fees, condo insurance, taxes and more. We’ll also discuss mortgage options for condos.

How Much Does A Condo Cost?

The cost of a condo will depend on several factors, including location, size and amenities. According to the National Association of REALTORS® (NAR), the average sales price for a condo in the U.S. was $357,600 as of July 2023. How much does that same condo cost to own per month? That’s $2,026 with a 20% down payment at current mortgage rates (based on an average 7.63%, 30 year fixed rate).


Now consider that NAR’s average single-family home price is higher at $412,300, and you can start to see the appeal of buying a condo.


Here’s a breakdown of the typical costs of condo ownership:

Average Costs Of Condo Ownership

Sale Price

$357,600

Monthly Mortgage Payment

$2,026 (with a 20% down payment at current average interest rate of 7.63% at 30 yr fixed)

Property Tax

0.9%

Monthly Condo Fees

$350

Condo Insurance

$513 per year


U.S. Cities With The Highest And Lowest Condo Costs

Condo costs will vary depending on where you live. It can be helpful to reference some cities with the highest and lowest condo prices to gauge the affordability of condos in your area.

Here are the cities with the highest median condo sales prices in Q1 2023, according to NAR:

  • San Francisco, CA: $900,000
  • Los Angeles, CA: $611,800
  • San Diego, CA: $633,600
  • Boston, MA: $558,400
  • Boulder, CO: $497,400
RHB Assets From IGX: The most expensive cities to buy a condo graph

The cities with the lowest median condo sales prices in Q1 2023 were:

  • Greensboro, NC: $147,300
  • Winston, NC: $149,900
  • Cleveland, OH: $164,500
  • Tallahassee, FL: $175,000
  • Bismarck, ND: $176,600
RHB Assets From IGX: Cheapest cities to buy a condo infographic with various data points.

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How Much Are Property Taxes On A Condo?

Like single-family homes and townhouses, property taxes on condos are determined by how much the property is worth. Property tax rates don’t differ for condos. Because property taxes vary by state, you can expect to pay 2.49% in New Jersey or 0.28% in Hawaii.

RHB Assets From IGX: Bar chart showing U.S. property tax rates by state.

How Much Are Condo Fees?

As with most things price-related, condo fees may vary. The amount charged is typically determined by how big the condo unit is, the included amenities and how much maintenance needs to be done.

According to Condo Manager USA, the average cost of condo fees nationwide is around $350 per month, but condo fees range significantly from city to city.

Considering condo fees cover features like pools and common areas and services such as a door attendant or waste removal, the fees can vary wildly depending on what a building offers and how much routine maintenance is required.

The building may also have a condo association. Much like a homeowners association (HOA), condo associations are community-operated organizations that set rules that govern a building and its amenities.

Condo fees are generally broken down into three payment categories:

  • Operating funds: Part of the condo fee you can expect to pay will be allocated to an operating fund. The fund pays for services, like building maintenance in common areas, such as stairwells, elevators, hallways and terraces. It may also cover amenities, like gym and pool upkeep or building services, like garbage pickup or a door attendant.
  • Reserve funds: Another chunk of the condo fee will be put toward a reserve fund. Consider this the building’s “savings account.” The fund covers infrequent maintenance with a higher price tag, like elevator repairs, roof replacements or infrastructure overhauls.
  • Special assessments: In rare cases, such as a natural disaster, condo associations may collect a special assessment, which is a one-time payment to address an urgent issue the association may not have budgeted for. Money can also be collected when a community project is over budget, though this typically requires a vote for approval.

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How Much Is Condo Insurance?

Like any other type of real estate, you must purchase homeowners insurance when buying a condo. The cost of condo insurance, also known as HO6 insurance, will depend on how much you pay for the condo, how much coverage you need, how much money you put down as a deposit and how much risk is involved in the purchase.

According to Value Penguin, the average cost of condo insurance in the U.S. is $516 per year. Generally speaking, insurance is more expensive in states with a higher risk of natural disasters, like Florida or Texas, and less expensive in lower-risk states, like Utah or Wisconsin.

Can You Get A Mortgage On A Condo?

Yes, it’s possible to get a mortgage on a condo. Lenders require information about the condo association, how much money you plan to put down as a deposit and how much of the purchase price you intend to finance.

There are several types of home loans you may qualify for:

  • Conventional mortgages: A conventional mortgage is the most common type of loan. It typically requires a minimum down payment of 3% and a credit score of 620 or higher.
  • USDA loans: A USDA loan is a zero-down mortgage offered through the U.S. Department of Agriculture’s Rural Development program. Our sister company, Rocket Mortgage®, doesn’t offer USDA loans at this time.
  • FHA loans: FHA loans are insured by the Federal Housing Administration and require a minimum down payment of 3.5%. They often have low closing costs, making them attractive to first-time home buyers.
  • VA loans: VA loans are government-backed loans. They are available to veterans, military service members and eligible spouses. There’s no down payment requirement, but you must have a Certificate of Eligibility from the VA  to take advantage of this military service benefit.

The Bottom Line: Understand How Much Condos Cost Before You Buy

When considering how much a condo costs, remember that the total cost of ownership goes beyond the purchase price. You’ll likely need to factor in regular condo fees, insurance premiums, taxes and closing costs. When you account for these factors, you can be sure you’re making an informed decision when buying a condo.

If you’ve decided a condo is right for you and are ready to buy, start the approval process with Rocket Mortgage.

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Miranda Crace

Miranda Crace is a Senior Section Editor for the Rocket Companies, bringing a wealth of knowledge about mortgages, personal finance, real estate, and personal loans for over 10 years. Miranda is dedicated to advancing financial literacy and empowering individuals to achieve their financial and homeownership goals. She graduated from Wayne State University where she studied PR Writing, Film Production, and Film Editing. Her creative talents shine through her contributions to the popular video series "Home Lore" and "The Red Desk," which were nominated for the prestigious Shorty Awards. In her spare time, Miranda enjoys traveling, actively engages in the entrepreneurial community, and savors a perfectly brewed cup of coffee.