For years, real estate experts including myself have said that single-family homes were a better investment than condos. Why? They were the preferred type of housing for most people living in the United States. Not only that, but these properties come with land, which drives the value upward. Condos, on the other hand, were small and came with lots of regulations. It seems, however, that this may be a changing trend.
What Recent Stats Show
Recent statistics are showing a new trend for condominiums. Trulia’s data shows that in the last 5 years, the appreciation rate of condos has grown faster than that of single-family homes. In fact, since 2012, median condo values rose 38.4% while single-family homes grew just 27.9%.
Closer to home, the following Westside cities have seen condo increases that outpace single family homes in the past year:
- Ladera Heights: +38% for condos / -54% for single-family homes
- West LA: 18% for condos / 4% for single-family homes
- Culver City: 16% for condos / -15% for single-family homes
- Playa Vista: 5% for condos / -10% for single-family homes
Condos, especially those in urban markets, are hot because millennials, and to some extent, retiring baby boomers, have reversed direction and no longer want to live in the suburbs. Instead, they want to live in areas close to amenities such as:
Additionally, condos are no longer smaller homes for retirees. New luxury condos in the LA area are as big as many single-family homes and offer free amenities without any of the work. Who wouldn’t want a pool, 24/7 gym, and concierge service to boot?
Condos are definitely playing a key part in the real estate uptick on the Westside. However, in some markets, single-family housing is still king. Before deciding where to buy to make the most of the market, give me a call. I’d love to talk with you about the many single-family home and condo opportunities on the Westside.