Point2 analysts examined the prominent urban areas of the country to ascertain the locations where switching from a condominium to a standalone house would be relatively uncomplicated.
In their study, Point2 scrutinized the median selling price of condominium and detached house units in the 200 most populous cities, comprising 150 central cities within their metropolitan regions and 50 secondary cities, as outlined in their research.
After taking into account the median household income in each area, we computed the ratio of the price difference between a condominium and a detached house to the income. This ratio is equivalent to the number of years of income needed to bridge the gap between the two property types. Moving from a condo to a house would prove to be a wise financial decision in several core cities, such as:
- In various core cities, including Detroit (75%), Akron, OH (39%), and Cleveland (36%), among others, houses are less expensive than condos.
- Rochester, NY’s single-family homes and condos have an identical median price of $183,000.
- In Providence, RI, the price difference between a condo and a detached home can be covered in less than a month’s salary, making upsizing simple.
- The price-difference-to-income ratio falls between 0.1 and 0.4 in ten cities, indicating that the price difference between a condo and a house can be bridged in less than half of yearly income.
- Secondary cities, including Fontana, CA, Joliet, IL, Chesapeake, VA, and McKinney, TX, require a maximum of one year’s income to match the price difference.
- It is feasible to move from a condo to a detached house in Killeen, TX, Kansas City, KS, and Norfolk, VA, as they are all central cities that exhibit a 0.1 ratio and net differences of under $8,000.
- However, some large cities make upsizing difficult, such as Bellevue, WA (185%), Arlington, VA (173%), and more, where houses cost more than twice the median price of condos. Honolulu, with a ratio of 10.1, has the highest ratio, which means that the $744,000 price difference between a condo and a house is equivalent to ten years’ income in that city.