Cost Comparison
A $2,000/mo apartment plus renter's insurance costs roughly $270,000 over 10 years. A $350K condo at 10% down with a $400 HOA costs about $300,000 in gross outlay -- but $220,000 net after equity. The condo wins by about $50,000 if you stay the full decade. But only if you stay the full decade.
Most apartment-vs-condo cost comparisons stop at four or five line items. They compare rent to mortgage and call it done. That comparison misses HOA fees, property tax, HO-6 insurance, PMI for under-20%-down buyers, maintenance reserves, and the growing phenomenon of special assessments. This page covers all of them, with real numbers sourced from NAR, NAIC, CoreLogic, and CAI as of Q1 2026.
The honest framing: neither renting nor owning is universally cheaper. It depends on your local price-to-rent ratio, HOA level, stay length, and what you would do with the down payment if you kept it invested instead of locking it into a property. The calculator below lets you run your specific numbers. The tables give you the national benchmark ranges.
| Cost Item | Low | Median | High | Notes |
|---|---|---|---|---|
| Base monthly rent | $1,400 | $2,000 | $3,500 | Varies widely by metro and unit size |
| Renter's insurance | $12 | $18 | $35 | NAIC 2026 national median $18/mo |
| Parking | $0 | $75 | $250 | Often bundled in rent; separate in urban cores |
| Storage unit | $0 | $40 | $120 | Common in dense cities; optional |
| Pet rent (per pet) | $0 | $35 | $75 | On top of one-time pet deposit |
| Utilities (if excluded) | $0 | $80 | $200 | Many apartments include water; heat/electric varies |
| Amenity fee surcharge | $0 | $0 | $65 | Growing in newer luxury buildings |
| Laundry (in-unit not standard) | $0 | $20 | $50 | In-unit W/D common in condos, less so apartments |
| Cost Item | Low | Median | High | Notes |
|---|---|---|---|---|
| Mortgage P&I (30yr, 6.8%) | $1,500 | $2,100 | $3,200 | $270K-$350K-$530K loan amount |
| HOA monthly fee | $150 | $450 | $1,200 | CAI 2026: national median $460/mo for condos |
| Property tax (monthly) | $200 | $350 | $700 | 0.8-2.5% of value annually by state |
| HO-6 condo insurance | $33 | $55 | $100 | $400-$1,200/yr; Insurance.com 2026 |
| PMI (if <20% down) | $0 | $130 | $220 | 0.5-1.5% annually of loan; drops at 20% equity |
| Maintenance reserve | $150 | $275 | $500 | 1% of property value annually recommended |
| Utilities | $80 | $150 | $280 | Often NOT included in HOA; water/heat billed to unit |
| Parking (if not deeded) | $0 | $0 | $250 | Usually deeded with unit but verify |
| Special assessment reserve | $0 | $50 | $200 | Self-funded reserve for unexpected assessments |
FHA mortgage insurance (called MIP) does not drop when you reach 20% equity -- unlike conventional PMI. If you put down less than 10% on an FHA loan, you pay the 0.55% annual MIP for the full 30-year life of the loan. That adds roughly $1,900 per year or $57,000 over 30 years on a $350K purchase. Many first-time condo buyers assume all PMI works the same. It does not. If your credit score is above 680 and you have 5%+ down, a conventional loan with PMI that drops at 20% equity is almost always the better choice.
Based on median apartment rent, median condo rent, and median condo purchase price in each market. Break-even is the year at which condo ownership costs less on a net-of-equity basis than renting the equivalent apartment. Assumes 3% annual rent growth, 2.5% appreciation, and 6.8% mortgage rate. Data: Zillow, CoStar, Apartment List Q1 2026.
| Metro | Apt Rent (median) | Condo Rent (median) | Condo Price (median) | Break-even |
|---|---|---|---|---|
| NYC | $3,200 | $3,600 | $850,000 | 12+ yrs |
| Los Angeles | $2,500 | $2,800 | $650,000 | 10-13 yrs |
| Chicago | $1,900 | $1,700 | $320,000 | 6-8 yrs |
| Miami | $2,400 | $2,700 | $450,000 | 9-12 yrs |
| Washington DC | $2,300 | $2,200 | $480,000 | 8-11 yrs |
| Boston | $2,900 | $3,100 | $620,000 | 11-14 yrs |
| Atlanta | $1,700 | $1,600 | $280,000 | 6-8 yrs |
| Denver | $1,900 | $1,850 | $380,000 | 7-10 yrs |
To keep the numbers honest: this comparison excludes rent control benefits (significant in NYC, SF, and LA where long-term renters often pay well below market), state-specific tax benefits for owners such as the mortgage interest deduction and property tax deduction, the capital gains exclusion on primary residence sale ($250,000 single, $500,000 married under IRC Section 121), and the opportunity cost of the down payment if it were invested in an index fund at 7% real return instead. Factoring in opportunity cost often narrows or reverses the condo advantage in high-price markets. See the buy vs rent decision page for the opportunity-cost analysis.
It depends on local prices, HOA fees, and rent growth. In most US metros with price-to-rent ratios above 20, renting often wins on a pure cash-outflow basis over 10 years. The condo owner builds equity through principal paydown, but that is illiquid. If the condo price is $350,000, HOA is $400 per month, and rent is $2,000 per month growing at 3% annually, the break-even is typically around year 7-9 after accounting for equity built.
HO-6 is the condo owner's interior insurance policy. The HOA's master policy covers the building exterior and common areas, but your unit's interior -- walls, floors, fixtures, personal property, and liability -- requires a separate HO-6 policy. Median cost is $400-$800 per year nationally. Without it, you are uninsured for interior damage. Many condo HOAs now require proof of HO-6 at closing.
It depends on your down payment. If you put down 10% or more on an FHA loan, the annual MIP drops off after 11 years. If you put down less than 10%, FHA mortgage insurance lasts the life of the loan -- 30 years -- regardless of how much equity you build. Conventional PMI, by contrast, drops when you reach 20% equity. This is a major reason why FHA condo loans cost more than they appear on the surface.
Most comparisons miss: PMI on low-down-payment condo purchases (adds $100-$200 per month), HOA special assessments (can be $5,000-$50,000+ one-time), HOA reserve shortfalls (most buildings are underfunded), broker fees in NYC and Boston for apartment rentals, move-in and move-out fees charged by both types, and the opportunity cost of the down payment if invested instead.
Sources: CAI (Community Associations Institute) 2026 HOA fee data; NAIC renter's insurance median; CoreLogic ClosingCorp 2026 closing cost report; Freddie Mac PMMS mortgage rate April 2026; Zillow Research Q1 2026; Apartment List Rent Report March 2026; Insurance.com HO-6 rates 2026. Last verified April 2026.