By Natalie Novarro, REALTOR®
Sotheby’s International Realty – Beverly Hills
Serving the Hollywood Hills • Sunset Strip • Surrounding Los Angeles Neighborhoods
You’re shopping for a home in Los Angeles, and you’ve narrowed your options down to two properties.
One is a beautiful two-bedroom condo in Century City for $750,000.
The other is a smaller single-family home for $900,000.
At first glance, the condo seems like the more affordable choice. It’s $150,000 less, the building has a pool and gym, and you won’t have to worry about maintaining a yard.
But then you notice the condo has a $1,200 monthly HOA fee.
Suddenly, the comparison isn’t quite so simple.
Should you buy a condo or a house in Los Angeles? And which one actually costs more?
I think this is one of the most important financial decisions buyers can make, especially in a city where both property prices and monthly ownership expenses can be substantial.
Here’s what I would look at before making that decision.
1. Don’t Compare Purchase Prices Alone
One of the biggest mistakes buyers make is comparing the asking prices without calculating the total cost of ownership.
A $750,000 condo may seem like a better deal than a $900,000 house.
But the condo may have monthly HOA dues, additional insurance requirements, and the possibility of special assessments.
The house may have higher mortgage payments, but it could also come with larger maintenance responsibilities, landscaping expenses, and repair costs.
Neither is automatically the better financial choice.
I would start by comparing what each property will actually cost you every month, then look at the longer-term expenses and potential resale value.
2. How Much Do HOA Fees Really Add to the Cost of a Condo?
HOA fees are one of the first things I examine when showing condos to buyers.
In Los Angeles, dues can vary considerably depending on the building, its age, amenities, staffing, insurance, and maintenance needs.
Some buildings offer relatively basic services.
Others have 24-hour concierge service, valet parking, swimming pools, fitness centers, security, and extensive common areas.
Those amenities come at a cost.
Let’s say you’re considering a condo with an HOA fee of $1,200 per month.
That’s:
- $14,400 per year
- $72,000 over five years
- $144,000 over ten years
And that’s assuming the dues never increase.
Now, some of those expenses would otherwise be paid directly by a homeowner, such as certain insurance, maintenance, and shared utility costs.
So it wouldn’t be accurate to treat the entire HOA fee as wasted money.
But it is a substantial ongoing expense that needs to be included in your budget.
The question isn’t just how much the HOA costs. It’s what you’re receiving in return and whether the building is being managed responsibly.
3. A $750,000 Condo vs. a $900,000 House: Which Costs More Per Month?
Let’s look at a hypothetical comparison.
Assume both purchases involve a 20% down payment and a 30-year fixed mortgage at 6.5%.
These are illustrative assumptions, not current lender quotes.
| Monthly expense | $750,000 condo | $900,000 house |
|---|---|---|
| Principal and interest | $3,792 | $4,551 |
| Estimated property taxes | $781 | $938 |
| Illustrative insurance | $150 | $300 |
| HOA dues | $1,200 | $0 |
| Estimated monthly total | $5,923 | $5,789 |
In this example, the less expensive condo actually has a slightly higher monthly payment.
And we haven’t included utilities, maintenance reserves, repairs, or potential special assessments.
The house also requires a larger down payment and may have substantially higher out-of-pocket maintenance expenses.
The point isn’t that houses are always cheaper.
It’s that a lower purchase price doesn’t necessarily mean a lower monthly cost.
Property taxes, insurance, mortgage terms, and HOA expenses will vary by property. Some houses also belong to HOAs.
4. What Do Condo HOA Fees Actually Cover?
This is an important question because not all HOA fees cover the same things.
Depending on the building, dues may contribute toward:
- Maintenance of common areas
- Landscaping
- Pool and fitness center upkeep
- Building insurance
- Security, concierge, or valet services
- Trash collection and certain utilities
- Elevator maintenance
- Building repairs
- Reserve funds for future capital improvements
Some buildings cover water and gas. Others don’t.
Some provide extensive amenities that would be expensive or impractical to maintain individually.
Before dismissing a building because of its HOA fee, I would want to see exactly what’s included.
A $1,000 monthly HOA in a full-service building may provide very different value from a $1,000 HOA in a building with few amenities and significant deferred maintenance.
5. What Is a Special Assessment, and Why Should Condo Buyers Care?
This is one of the biggest financial risks condo buyers need to understand.
A special assessment is an additional charge imposed by the homeowners association, generally to cover expenses that regular dues or available reserves cannot adequately fund.
For example, a building might need a new roof, major plumbing repairs, elevator replacements, or repairs to its parking structure.
If the HOA doesn’t have sufficient funds, owners may be required to contribute additional money.
Imagine purchasing a condo and discovering that the building has approved a $30,000 special assessment for each unit.
That could substantially change the financial picture.
Before buying, I would want to review the HOA documents, including financial statements, reserve information, meeting minutes, and notices of existing or planned assessments.
I’d also want to know whether major repairs are anticipated.
A beautifully remodeled condo doesn’t necessarily mean the building itself is in good financial condition.
6. Can High HOA Fees Affect Your Ability to Qualify for a Mortgage?
Yes.
When a lender evaluates your ability to afford a condo, HOA dues are generally included in your monthly housing obligations.
That means a high HOA fee can reduce the amount you qualify to borrow.
For example, a buyer might qualify for a larger mortgage on a home without an HOA than on a condo with $1,500 monthly dues, depending on the overall financial picture.
This is why I recommend speaking with your lender before assuming a lower-priced condo will be easier to finance.
You want to know your total approved monthly payment, not just your maximum purchase price.
7. Can the Condo Building Itself Affect Financing?
Absolutely, and this is something buyers sometimes discover too late.
Even if you have excellent credit, a strong down payment, and a mortgage preapproval, the condominium project itself may need to meet lender requirements.
Potential concerns include inadequate building insurance, significant deferred maintenance, critical repairs, certain litigation, or other project-level issues.
Some properties may be difficult to finance through particular loan programs.
That can affect not only your purchase but also your ability to sell the condo later.
Before getting too far into a transaction, I would want the lender to review the building’s eligibility and identify any potential financing concerns.
8. Is Buying a House Better Because You Don’t Have an HOA?
Not necessarily.
One advantage of a single-family home without an HOA is greater control over your property.
You generally make your own decisions about maintenance, improvements, and repairs, subject to applicable laws and restrictions.
But that also means you’re responsible for the expenses.
If your roof needs replacing, you’re paying for it.
If the sewer line fails, that’s your problem.
If the landscaping needs work, you either maintain it yourself or hire someone.
And in the Hollywood Hills, homeowners may face additional expenses involving drainage, retaining walls, slopes, trees, and access.
A house gives you more independence, but it also gives you more responsibility.
With a condo, you’re sharing many maintenance responsibilities. With a house, you’re usually managing them yourself.
9. Which Is More Expensive to Maintain: a Condo or a House?
It depends on the property.
A newer, well-managed condo may require relatively little day-to-day maintenance inside the unit.
An older single-family home may need ongoing repairs, landscaping, pest control, and occasional major replacements.
But an older condo building can also require expensive repairs that result in rising dues or assessments.
I would look beyond the first year of ownership.
For a house, I’d consider the age and condition of the roof, plumbing, electrical systems, heating and cooling, foundation, and exterior.
For a condo, I’d examine both the unit and the building’s shared systems.
Neither property type eliminates maintenance costs.
They simply distribute those responsibilities differently.
10. What About Insurance Costs in Los Angeles?
Insurance is another important part of the comparison.
For a single-family home, the owner generally needs coverage appropriate for the structure and other insured risks.
For a condo, the HOA typically maintains a master policy covering certain portions of the building, while individual owners may need their own condominium insurance for personal property, liability, and portions of the unit not covered by the master policy.
The exact division of coverage depends on the association’s documents and insurance policies.
In parts of the Hollywood Hills and other hillside neighborhoods, wildfire exposure and property-specific conditions can make insurance particularly important.
I would obtain insurance quotes early rather than wait until the end of escrow.
And for a condo, I’d want to understand both the building’s master insurance and the coverage the individual owner needs.
11. Do Condos Appreciate as Much as Houses in Los Angeles?
There’s no universal answer.
Single-family homes often have a land component that can contribute significantly to their value, especially in desirable Los Angeles neighborhoods.
But that doesn’t mean every house will outperform every condo.
Location, condition, supply, demand, building quality, and purchase price all matter.
A desirable condo in a well-maintained building may perform better than a poorly located house purchased at an inflated price.
Likewise, a single-family home with a usable lot in a desirable neighborhood may offer long-term advantages that a condo doesn’t.
I would look at comparable sales and historical trends for the specific properties you’re considering.
Don’t assume that buying a house automatically guarantees better appreciation.
12. Can High HOA Fees Make a Condo Harder to Resell?
They can.
When future buyers evaluate your condo, they’ll consider the purchase price and the monthly HOA dues.
A unit with a relatively high fee may appeal to a smaller pool of buyers, particularly if the amenities don’t justify the expense in their eyes.
Rising dues, special assessments, deferred maintenance, or financing restrictions can also affect resale.
This doesn’t mean you should avoid every building with high HOA fees.
Some buyers specifically want full-service living and are willing to pay for it.
But I would compare the building’s dues with similar properties and examine whether they’re likely to affect future marketability.
13. What If I Want to Rent the Property Out Later?
This is another reason to read the HOA documents carefully.
Some condominium associations restrict leasing, impose minimum lease terms, or limit the number of units that may be rented, subject to applicable California law.
Other buildings may have fewer restrictions.
If you’re considering buying a condo as your primary residence but might eventually keep it as an investment property, you need to understand the rules before purchasing.
I’d also look at the financial side.
A condo with high HOA dues may produce less rental income after expenses than the purchase price initially suggests.
A house may offer different rental possibilities, but it can also come with higher maintenance costs and applicable local rental regulations.
14. What About Privacy, Outdoor Space, and Lifestyle?
Money isn’t the only consideration.
A condo may be ideal if you travel frequently, want a lock-and-leave lifestyle, or enjoy amenities like a pool, gym, concierge, or security.
You may prefer being close to restaurants, shopping, and entertainment without maintaining a yard.
A house may be more appealing if you want privacy, outdoor space, room for pets, fewer shared walls, or greater flexibility to modify the property.
In Los Angeles, these differences can be significant.
A Century City high-rise condo offers a very different lifestyle from a Laurel Canyon cottage.
Neither is inherently better.
The right choice depends on how you actually want to live.
15. What Documents Should I Review Before Buying a Condo?
Before purchasing a condo, I would want to review the available association documents carefully.
That may include:
- CC&Rs and bylaws
- Current HOA budget
- Financial statements
- Reserve study and reserve funding information
- Board meeting minutes
- Notices of special assessments
- Pending or threatened litigation information
- Insurance summaries and master policy details
- Rules concerning pets, parking, renovations, and rentals
- Information about planned major repairs
I would also want the lender to investigate the project’s financing eligibility.
Reviewing these documents is an important part of understanding what you’re buying.
A condo purchase isn’t just about the individual unit.
You’re also buying into the financial and operational condition of the association.
16. When Would I Recommend Buying a Condo?
A condo may make sense if you want a lower-maintenance lifestyle, value the building’s amenities, and are comfortable with the HOA’s financial condition and rules.
It can also be a way to purchase in a neighborhood where a comparable single-family home would be substantially more expensive.
For some buyers, location matters more than having a private yard.
And for someone who travels often or doesn’t want the responsibility of maintaining a house, a well-managed condo can be an excellent fit.
I would simply want to make sure the monthly expenses and long-term risks are understood.
17. When Would I Recommend Buying a House?
A house may make more sense if you want greater privacy, control, outdoor space, or flexibility.
It may also be attractive if you plan to stay for many years and want the potential benefits of owning land.
But I’d want to make sure you’re financially prepared for repairs and maintenance.
A house with a lower monthly payment isn’t necessarily a bargain if it needs substantial work.
If you’re considering a property in the Hollywood Hills, I’d also recommend reading my guide to buying a hillside home in Los Angeles.
18. So, Should You Buy a Condo or a House in Los Angeles?
Here’s how I would approach it.
First, compare the total monthly costs, including the mortgage, taxes, insurance, HOA dues, and expected maintenance.
Second, evaluate the long-term financial considerations, including major repairs, special assessments, financing, and resale.
Third, think about your lifestyle.
Do you want the amenities and convenience of a condo?
Or would you rather have the independence and privacy of a single-family home?
Finally, consider what you may want five or ten years from now.
Your first purchase doesn’t have to be your forever home, but it should make sense for your current needs and future plans.
And if you’re still weighing your budget, you may also find my article on buying a home in the Hollywood Hills for under $1 million helpful.
The best property isn’t necessarily the one with the lowest asking price. It’s the one that offers the right combination of affordability, lifestyle, and long-term value.
Frequently Asked Questions
Is it cheaper to buy a condo than a house in Los Angeles?
Condos often have lower purchase prices than comparable single-family homes in the same area, but HOA dues and other ownership costs can narrow or eliminate the monthly savings.
Are HOA fees included in a mortgage payment?
HOA dues are generally separate from the mortgage payment, although lenders typically include them when calculating your housing expenses and qualifying you for financing.
Can HOA fees increase after I buy a condo?
Yes. Associations may increase regular dues in accordance with applicable law and governing documents. Special assessments may also be imposed for qualifying expenses.
Is a condo a good first home in Los Angeles?
It can be. A condo may offer a more accessible purchase price, desirable location, and fewer individual maintenance responsibilities. However, buyers should evaluate HOA finances, rules, and total monthly expenses.
Are condos harder to finance than houses?
Sometimes. Condo financing can involve an additional review of the building or project, including insurance, repairs, and financial considerations. Requirements depend on the loan program and property.
Is a house a better long-term investment than a condo?
Not automatically. Land ownership, location, supply, maintenance costs, purchase price, and future buyer demand all influence performance. Neither property type guarantees appreciation.
Can I rent out my condo in Los Angeles?
Possibly, but you need to review the HOA’s rental restrictions and applicable local and state regulations. Do not assume that every condo can be rented freely.
Should I avoid condos with high HOA fees?
Not necessarily. The more important questions are what the dues cover, whether the association is financially healthy, and how the fees affect your budget and potential resale.
Thinking About Buying a Condo or House in Los Angeles?
If you’re comparing a condo in Century City, West Hollywood, or Beverly Hills with a single-family home in the Hollywood Hills or another Los Angeles neighborhood, I’d be happy to help you look at the numbers.
I can help you compare properties, evaluate monthly ownership costs, review available HOA information, and identify questions worth investigating before making an offer.
Sometimes the less expensive property isn’t actually the more affordable one.
And sometimes the condo with the higher HOA fee offers exactly the lifestyle you’re looking for.
The important thing is knowing what you’re buying.
Visit my Contact page or call/text 323-719-3360.
About the Author
Natalie Novarro is a real estate agent with Sotheby’s International Realty in Los Angeles, specializing in the Hollywood Hills and Sunset Strip.
With over 20 years of experience and more than $100 million in career sales, she works with buyers, sellers, and investors throughout Los Angeles.
For more information or to get in touch, visit the Contact page or call/text 323-719-3360.
This article is for general informational purposes only and does not constitute financial, tax, legal, insurance, or lending advice. All figures are hypothetical. Buyers should independently verify property expenses, HOA information, insurance coverage, financing eligibility, and other material facts with qualified professionals.