Jul 31, 2023 - Real Estate

Triangle homebuyers flock to condos and apartments as housing costs surge

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.

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Triangle homebuyers flock to condos and apartments as housing costs surge

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