Condos and townhomes are well-suited to the millennial lifestyle.

A recent analysis by the New York Times showed how decades of rising home prices and larger builds have created a shortage of small, entry-level houses for new buyers. It’s leading potential homeowners, along with real estate agents—to wonder: Are condos and townhomes the new starter home? The trend toward condos and townhomes as starter homes, it turns out, may not be all that new. “To me, [condos] were always an option as a starter home,” says Shane Herbert, who has been in real estate for 18 years, mostly in Utah, and is now founder and CEO of the real estate firm Bureau One. In some ways, it’s a misnomer to think “starter home” must mean “single-family home.” While home prices have jumped considerably during the pandemic, Herbert says, they’ve been rising steadily for quite some time. But affordability is not the only reason that young buyers are drawn to condos and townhomes.

“I also see a trend that people are wanting more flexibility in their lives. Travel is more important. Life experience is more important,” Herbert says. “With a condo, in a lot of ways, you’re buying some independence.” That’s because, with a condo, owners are not responsible for exterior maintenance—things like mowing the lawn or clearing the driveway. Owning a condo is sort of like owning an apartment in that way: You’re only responsible for what’s on the inside (unless you have a townhome with a yard). This arrangement frees up time for more travel and life experience. And because it limits what renovations you can do, it can also save you some money, Herbert says. So, while the rising cost of single-family-home ownership is certainly a big factor, Herbert thinks condos and townhomes are also well-suited to the millennial lifestyle. “There is an equal movement and desire for people to have a different quality of life,” Herbert says.

Source: NextAdvisor