The Hidden Costs of Condo Ownership: Why Buyers Are Walking Away in 2026

Condo sellers now outnumber buyers by more than 2 to 1 nationwide, and the numbers in Metro Atlanta are even more concerning. But the real story isn't just about falling demand. It's about the rising cost of owning a condominium.

For years, condominiums have been marketed as an affordable alternative to single-family homes, particularly for first-time homebuyers, retirees, and people looking for a lower-maintenance lifestyle.

But a new report from Redfin reveals a significant shift in the condo market, and it's raising important questions about affordability, financing, and the long-term costs of ownership.

According to Redfin's November 2026 report, there were an estimated 123% more condo sellers than buyers nationwide in September, the largest imbalance in records dating back to 2013.

And here in Metro Atlanta? The gap was even wider.

Metro Atlanta's Condo Market Is Facing a Major Imbalance

Redfin estimates that in September 2026:

• 3,630 condo sellers were competing for approximately 1,102 buyers in Metro Atlanta.

• That represents nearly 230% more sellers than buyers.

• Nationwide, approximately 197,248 condo sellers were competing for just 88,460 buyers.

These numbers represent estimates of active buyers and sellers, not completed transactions.

Across the country, approximately 37% of condos sold in September had experienced a price reduction. The typical condo spent 63 days on the market before going under contract, compared with just 35 days five years earlier.

While these conditions may create negotiating opportunities, they also raise a bigger question:

Why are so many buyers becoming hesitant about purchasing condos?

The answer goes well beyond the purchase price.

1. HOA Fees Can Make an Affordable Condo Surprisingly Expensive

One of the biggest misconceptions about condo ownership is that a lower purchase price automatically means a lower monthly housing payment.

Unlike many single-family homes, condos typically have mandatory homeowners association (HOA) fees.

These fees may cover building maintenance, landscaping, shared amenities, insurance for common areas, and other operating expenses.

But they can also represent a significant additional monthly expense.

Consider this hypothetical example:

A buyer finds a condominium for $250,000 with a $600 monthly HOA fee.

That $600 adds another $7,200 per year to the cost of ownership, before considering the mortgage payment, property taxes, individual insurance, or other expenses.

And HOA fees aren't necessarily fixed.

As insurance, maintenance, labor, and repair costs increase, associations may need to raise their monthly dues.

A condo that fits comfortably within your budget today could become considerably more expensive over time.

2. Special Assessments Can Create Unexpected Financial Burdens

Another major consideration is the possibility of special assessments.

A special assessment is an additional charge imposed by a condominium association when major repairs, improvements, or unexpected expenses cannot be adequately covered by existing funds.

These expenses might include:

• Roof replacements

• Structural repairs

• Elevator replacements

• Parking garage repairs

• Major plumbing or electrical work

• Insurance-related shortfalls

Depending on the association's financial condition and the scope of the project, owners could face assessments totaling thousands or even tens of thousands of dollars.

Imagine purchasing a condo only to discover that the building needs significant structural repairs and each owner must contribute an additional $15,000.

That's a substantial expense that may not have been part of the original homebuying budget.

This is why reviewing the association's financial statements, reserve funds, meeting minutes, and planned capital improvements is so important before purchasing.

3. Rising Insurance Costs Are Adding Pressure

Insurance is another growing concern in the condominium market.

Condo associations generally maintain master insurance policies covering certain shared structures and common areas.

As insurance premiums increase, associations may pass those additional expenses along to homeowners through higher dues or assessments.

This has been especially challenging in markets exposed to hurricanes and other natural disasters, including parts of Florida and Texas.

Even when a condo association maintains a master policy, individual owners may still need their own insurance coverage.

Understanding exactly what the association's policy covers, what the individual owner is responsible for, and whether the association has adequate coverage is essential.

4. Not Every Condo Qualifies for Mortgage Financing

Here's something many buyers don't realize:

Getting approved for a mortgage doesn't automatically mean the condominium you want to purchase will qualify for financing.

When financing a condo, lenders may need to evaluate not only the borrower but also the condominium project itself.

Depending on the loan program, that review may include:

• The association's financial condition and reserve funding

• Adequacy of master insurance coverage

• Pending litigation

• Significant deferred maintenance or structural concerns

• Special assessments

• Owner occupancy and other project eligibility requirements

Some condominium projects may not meet the eligibility requirements for conventional, FHA, or VA financing.

That can create challenges for buyers, even when they have excellent credit, sufficient income, and a substantial down payment.

It can also affect existing condo owners when they decide to sell, because the pool of buyers who can obtain financing may be limited.

Before making an offer on a condo, it's important to understand whether the project is eligible for your intended mortgage program.

5. A Lower Purchase Price Doesn't Always Mean a Better Deal

According to Redfin, the national median condo sale price declined approximately 0.8% year over year in September 2026, reaching about $339,000.

At first glance, falling prices and increasing inventory may sound like great news for buyers.

But purchasing a home involves more than negotiating the sales price.

Consider two properties:

Condo: $250,000 purchase price with a $600 monthly HOA fee.

Single-family home: $300,000 purchase price with no mandatory HOA fee.

The condo costs $50,000 less upfront, but its HOA dues alone add $7,200 annually to the owner's housing expenses.

Of course, single-family homeowners must also budget for maintenance, repairs, insurance, and other expenses that an HOA might cover.

The point isn't that one type of property is always better than another.

It's that the total cost of ownership matters far more than the advertised purchase price.

A thorough comparison should include mortgage payments, taxes, insurance, HOA dues, maintenance, and potential future expenses.

What Does This Mean for Current Condo Owners?

For homeowners who already own a condominium, the growing imbalance between buyers and sellers is worth watching.

More competing listings and fewer buyers can mean longer selling times and increased pressure to negotiate.

Owners may also face additional challenges if their association has high monthly dues, pending assessments, inadequate reserves, or financing eligibility concerns.

If you're planning to sell, understanding your association's financial health and any potential financing obstacles before listing can help you prepare.

What Should Buyers Do Before Purchasing a Condo?

Condominiums can still make sense for certain buyers, particularly those who value shared amenities or reduced responsibility for exterior maintenance.

But buyers should do their homework before committing.

Ask questions about current HOA dues, recent fee increases, reserve funding, pending assessments, insurance coverage, major repairs, and the association's financial condition.

It's equally important to speak with a knowledgeable mortgage professional early in the process to determine whether the condominium project may qualify for your financing program.

The Bottom Line: Look Beyond the Price Tag

The latest Redfin data highlights a significant shift in the condominium market.

With sellers outnumbering buyers by 123% nationally and nearly 230% in Metro Atlanta, it's clear that condo buyers are becoming more selective.

Rising HOA fees, insurance expenses, special assessments, and financing restrictions are all important factors in that decision.

For buyers, the lesson is simple:

Don't confuse a lower purchase price with a lower cost of homeownership.

And for existing condo owners, understanding the financial health of your association is just as important as understanding the value of your property.

Whether you're considering a condominium, townhouse, or single-family home, making an informed decision starts with understanding the complete financial picture.

About the Author

Lindsay Frangie is a Branch Partner and Mortgage Loan Originator with ALCOVA Mortgage, bringing more than 24 years of mortgage lending experience to helping buyers and homeowners make informed financing decisions.

Lindsay Frangie | NMLS 6048

ALCOVA Mortgage | NMLS 40508

Equal Housing Lender

Source: Redfin, For Every Condo Buyer in the U.S., There Are More Than Two Sellers, November 9, 2026. Data reflects September 2026 market conditions.