Jul 31, 2023 - Real Estate

Triangle homebuyers flock to condos and apartments as housing costs surge

Illustration: Annelise Capossela/Axios

As the number of homes sold in the Triangle continues to decline from last year, one sliver of the housing market is actually seeing an increase in sales — high-end condos and townhomes.

Driving the news: Under-contract homes sales declined 18.4% from June 2022 to June 2023, according to data from Triangle Multiple Listing Services.

  • But if you narrow it down to townhouses and condos priced at $470,000 and up, sales are up 14.3% year over year.

The big picture: More buyers have turned to condos and townhouses as housing costs surge, Realtor.com analyst Hannah Jones tells Axios.

  • Across the U.S., that segment's prices are now climbing at a faster clip than single-family homes, the real estate company's data shows.

Why it matters: Condos' growing appeal comes as younger buyers look for more affordable homes, and empty nesters want to downsize to a maintenance-free lifestyle, real estate experts say.

  • It's also a sign that the Triangle is continuing to build denser types of housing, as most new homes constructed near its urban centers are condos or townhomes.

By the numbers: In May, the median sales price of a single-family home in Raleigh was around $429,000.

  • By comparison, the median sales price for a condo was $275,000.

Be smart: Homeowners' association fees, which vary from building to building, factor into the cost of owning a condo.

avatar

Get more local stories in your inbox with Axios Raleigh.

More Raleigh stories