If a Single-Family Home Feels Out of Reach, A Condo or Townhome Could Be Your First Step to Homeownership

One of the most common things I hear from buyers today is:

"The single-family homes I like are too expensive, and the homes within my budget aren't in the right location or need too much work."

If that sounds familiar, it may be time to broaden your search—not by lowering your standards, but by considering a different type of home.

For many first-time buyers, a condo or townhome can be a practical and financially smart way to begin building home equity.

According to a Keeping Current Matters article published on July 22, 2026, condos and townhomes continue to offer a more affordable path to homeownership for buyers who are priced out of the single-family home market.

Lower Purchase Prices Can Make Homeownership More Accessible

Compared to single-family homes, condos and townhomes generally have:

• Lower purchase prices

• Smaller down payment requirements

• Lower monthly mortgage payments

• Reduced closing costs

Because these properties often have smaller lots or shared structures, they typically cost less than detached homes.

If a single-family home in your preferred neighborhood is outside your budget, don't give up on the location just yet. You may find a condo or townhome in the same community that better fits your financial goals.

In many Chicago suburbs, buyers can still enjoy excellent schools, convenient amenities, and desirable neighborhoods while purchasing at a lower price point.

Your First Home Doesn't Have to Be Your Forever Home

Many first-time buyers believe they need to purchase their dream home right away.

In reality, your first home's primary purpose is to help you transition from renting to building wealth through homeownership.

Each monthly mortgage payment helps build equity by paying down your loan principal. As your home's value appreciates over time and your mortgage balance decreases, that equity can become the down payment for your next home.

A condo or townhome isn't necessarily your final destination—it can be the first step toward owning a larger single-family home in the future.

Lower Maintenance Can Be a Major Advantage

Owning a single-family home means you're typically responsible for:

• Roof maintenance

• Exterior repairs

• Lawn care

• Snow removal

• Driveway maintenance

• Landscaping

Many condos and townhomes include these services through the homeowners association (HOA).

For busy professionals or first-time homeowners, having the HOA handle exterior maintenance can save both time and stress.

While HOA dues are often viewed as an extra expense, it's important to consider what those fees actually cover. In many communities, they may include landscaping, snow removal, exterior insurance, maintenance, and shared amenities that you would otherwise pay for separately as a homeowner.

Important Things to Review Before Buying

Price shouldn't be your only consideration.

Before purchasing a condo or townhome, be sure to review:

• Monthly HOA dues

• History of HOA fee increases

• HOA reserve fund health

• Any upcoming special assessments

• Building insurance coverage

• Your required homeowner's insurance

• Rental restrictions

• Pet policies

• Parking and guest parking rules

• Responsibility for roofs, windows, and exterior maintenance

• Recent sales within the community

• Whether the community qualifies for your financing program

A community with very low HOA fees may actually have insufficient reserves, which could lead to costly special assessments later.

On the other hand, a higher HOA fee may provide excellent value if it covers insurance, maintenance, utilities, and other services.

Every Chicago Suburb Is Different

The condo and townhome market varies significantly across communities such as:

• Naperville

• Northbrook

• Glenview

• Buffalo Grove

• Schaumburg

In some neighborhoods, townhomes are substantially less expensive than single-family homes. In others, strong demand means the price gap is much smaller.

For condos especially, the financial health of the association and lender approval can play a major role in the buying process.

That's why it's important to compare your total monthly housing cost, including:

• Mortgage payment

• Property taxes

• HOA dues

• Homeowners insurance

—not just the purchase price.

A Home That Fits Your Budget Isn't "Settling"

Buying your first home doesn't mean buying your forever home.

Many successful homeowners begin with a well-located condo or townhome, build equity over several years, and later move into a larger home that better fits their family's needs.

If today's single-family home prices seem out of reach, don't assume homeownership has to wait.

Expanding your search to include condos and townhomes may open doors you didn't realize were available.

If you're planning to buy your first home in Chicago or the surrounding suburbs, I'd be happy to compare single-family homes, townhomes, and condos based on your budget, estimated monthly payment, and long-term goals.

Sometimes the best first home isn't the biggest one—it's the one that puts you on the path toward building lasting wealth.