Condo Blog - A Non-Corporate Blog From CondoDomain HQ

The 6 million condominiums in the United States constitute a major share of our total housing stock. They are becoming more popular, and more varied in style and use, with every passing year.

When I first started writing this real estate column 35 years ago, “condominium” was a strange and unfamiliar word. I had to explain what it was in every column in which I addressed the subject.

Today, it’s as common as the word “house.” But the concept continues to evolve in the current real estate marketplace. Today, I live in a condo townhome and work in an office condo.

The recent American Housing Survey produced by the Mortgage Bankers Association defines a condominium as “a type of ownership that enables a person to own an apartment or home directly in a project of similarly owned units. The owner’s name is on the deed, and the owner may have a mortgage on the unit occupied. The owner also may hold common or joint ownership in some or all common areas, such as grounds, hallways, entrances and elevators.”

Condos vary widely. Some are occupied by their owners, some by tenants. Some are units in large buildings, while others are single-family detached homes. Most are located in suburban areas, but an increasing number are in central cities.

The survey shows that last year about two-thirds of condo units (63 percent) were occupied by owners and 23 percent by renters. About 16 percent were vacant. Many boards of condo associations stipulate a maximum number of units within their complex that can be rented. This is to ensure that a substantial proportion of owners are residents and hold an equity stake in the condo development. Some mortgage lenders also insist on a limited number of investor-owned units before approving a mortgage application.

Condos tend to fill a spot between rental and outright ownership properties, the association reported.

You may be surprised to learn that most condos are not in large multifamily buildings. About half (49 percent) are in buildings with four or fewer units, and 36 percent are single-family homes. Only 13 percent of occupied condos are in buildings with 50 or more units.

Single-family homes that are in condo developments are less likely than those in multifamily buildings to be renter-occupied. Only 14 percent of occupied single-family detached condos are renter-occupied, while 32 percent of occupied condos in buildings with 50 or more units are renter-occupied.

Some people are confused by differences between a condo and a town house. They are both generally considered condo-type units, but town houses are usually on ground level with no units above them - typically two stories with the living area downstairs and bedrooms on upper level.

Town houses now make up the largest single block of condominiums, according to the Mortgage Bankers Association. Many new developments are in central city areas, either from new construction or conversion of apartments or other structures. Apparently, an increasing number of workers are tiring of the commute from the suburbs to their place of employment, so they are purchasing a condo close to their work.  Continued…
Source:  Jim Woodard, Copley News Service