What is a condo? What is a house?
Some people use the terms "condo" and "house" interchangeably, but the differences are important. Mainly, with a condo, you share ownership and financial responsibility with others.
Condo definition
A condo is one unit in a multi-dwelling property. Condo owners own the space inside their unit, and they share ownership of common property, such as the building itself and the lot it sits on.
Common property is defined by the bylaws for that particular condo association. For example, in an apartment-style configuration, the condo owner might own the entire wall between the unit and the hallway, half the wall, the drywall on the unit's side of the wall, or only the paint inside the unit.
A condo unit can resemble an apartment or townhouse. Condos are usually attached, which means each unit shares at least one wall with another residence. When people compare condo vs. house, they are usually thinking of a condo as an apartment-style unit and a house as a single-family home with a yard. But the word condominium refers to the legal ownership of the residence, not the architecture. Some condos are single-family detached homes.
House definition
A house is usually a single-family home that doesn't share the property with any other owner or share a wall with any other residence.
There are exceptions, of course. Some houses are built side by side with a shared wall down the middle, on two separately owned properties.
You can rent or own a house. But a homeowner has specific expenses and responsibilities. (More on that below.)
What are the costs associated with a condo vs. house?
In a condo, the homeowners association (HOA) pays some of the costs. When you own a house, you'll foot the bills.
Condo costs
- HOA dues: HOA fees are a common household expense for condos. They cover expenses like parking, trash, water, and building maintenance -- plus upkeep of shared amenities like the pool and clubhouse. For more on HOA fees and guidelines, check out our homeowners association guide.
- One-time assessments: Condo owners sometimes pay a one-time assessment fee. Like HOA fees, assessments cover expenses that all of the individual owners are responsible to share. Assessments can cover an unexpected expense (think storm damage to the roof), or an expected expense that's not included in the monthly dues (think 30-year elevator upgrade).
- Higher purchase cost: Some lenders charge higher mortgage rates for condos. You also might need to make a bigger down payment.
House costs
- Maintenance: When you own a house, you're responsible for all maintenance. That includes everything from fresh paint to a new water heater.
- Utilities: You'll pay all the utility bills (like electricity) yourself when you own a house.
- Landscaping: The exterior condition of the house is the owner's responsibility. If you're not handy with yardwork yourself, you'll have to hire someone and pay them out of your own pocket.
- Homeowners insurance: Since you're insuring the entire building and property, homeowners insurance for a house usually costs more than a policy for a condo of comparable size and age.
- HOA fees: You might have to pay HOA fees if you buy a house in a newer development -- even though you're not buying a condo. These fees might pay for pool maintenance for a community pool, maintenance of neighborhood roads, or similar costs. Use a mortgage calculator to make sure your mortgage payment, including HOA fees, is within your budget before you make an offer.
What are the benefits of living in a condo vs. a house?