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 national benchmark ranges drawn from public housing-cost data (U.S. Census ACS, Freddie Mac, Apartment List, Zillow, and insurer rate data) as of mid-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 | ~$15-20/mo nationally (III / NAIC, 2022 data) |
| 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, 6.5%) | $1,500 | $2,100 | $3,200 | $270K-$350K-$530K loan amount |
| HOA monthly fee | $150 | $400 | $1,200 | Census 2024 median ~$135 (all HOAs); condos avg ~$300-400, urban/amenity higher |
| 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 a 6.5% 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: U.S. Census Bureau American Community Survey (HOA fee medians); Freddie Mac PMMS (30-year fixed averaged 6.5% the week of 11 June 2026); Apartment List and Zillow Research rent and price data (Q1 2026); Insurance Information Institute / NAIC (renters and HO-6 premiums, latest published 2022 data); CoreLogic ClosingCorp closing-cost estimates. Figures are national benchmark ranges; local markets vary widely. Verified June 2026.
Updated 2026-04-27