If you’re exploring real estate options in Walnut Creek, the East Bay, or anywhere in California, one common question is: Are condos a good investment compared to single-family homes? Understanding the value trends of condos versus single-family homes can help you make a smart choice for your real estate investment.

Condo vs. Single-Family Home Appreciation in California

Looking back over the past decade, the numbers tell an interesting story. In California, the average price for a condo, which includes townhomes, was about $385,000 ten years ago. Today, that figure has grown to roughly $695,000 — an increase of approximately 80%.

Meanwhile, single-family homes have shown even stronger growth. Ten years ago, the average price was around $421,000, and now it’s about $825,000. That’s a 93% increase over the same period.

While these figures represent statewide averages and real estate is always local (meaning prices and trends can differ between places like Walnut Creek and other parts of California), the trend is clear: single-family homes have generally appreciated more than condos in the last decade.

Why Do Condos Tend to Appreciate Less?

There are several reasons why condos often don’t hold their value as well as single-family homes:

• HOA Fees and Rules: Homeowners’ associations can impact your investment by raising fees or imposing restrictions that make owning or renting a condo more complicated.

• Resale Challenges: Financing condos can sometimes be tougher, limiting the pool of buyers when you want to sell.

• Rental Restrictions: If the HOA restricts short-term or even long-term rentals, your investment income potential may decrease, which can reduce the overall value.

All these factors mean condos often carry more risks and can be less flexible investments compared to single-family homes.

Is Buying a Condo Still a Good Idea?

Condos can still be a good investment, especially if you want a lower-maintenance lifestyle or are just starting out in the East Bay real estate market. But if your primary goal is maximum appreciation and long-term wealth building, single-family homes in areas like Walnut Creek and greater California typically provide more stability and growth.

If you’re weighing your options in the current real estate market or want tailored advice about where to invest in Walnut Creek, California, or anywhere in the East Bay, I’m here to help.

Feel free to message me with your questions about real estate investments and how to get the most out of your home purchase!