While condominiums are more affordable than single-family homes, potential condo owners need to be aware of the average condo fees that come with the investment.
What the Average Condo Fees Are
Condo owners can expect to pay a few different fees with their purchase, including move-in costs, property tax, and HOA expenses.
When purchasing a condo, buyers may pay between $100 to $400 in move-in fees, and that price can quickly increase if the unit is intended to be leased out.
Property taxes can vary drastically, even for similarly priced condo units, depending on the location and neighborhood. However, these taxes generally remain less expensive than single-family homes due to less space per taxpayer.
Because condominiums offer residents shared common areas, building maintenance, and landscaping, residents are required to pay monthly or annual HOA dues. These additional costs allow the homeowner’s association to fund, manage, and protect these shared spaces outside of the individual units.
Unfortunately, condominium HOA fees tend to be the priciest out there. These costs can run residents anywhere from$1,200 to $8,000 annually depending on what services the HOA covers.
This gap in average HOA fees is so significant because these fees depend on many variables, such as the community’s reputation, age, and location, as well as the amenities that the condominium offers.
What you Can Expect to Pay
When it comes to condo fees, the windy city is already on the higher end of the spectrum. A report from Trulia also reveals that HOA fees specifically are on the rise.
According to the same report, the older the condominium building, the higher the HOA fees. These fees also increase when there are more units within the building.
HOA fees for condo buildings with 20 to 29 run on-average $160 higher per month more than single-family detached homes within a development. Buildings with 50 or more units have monthly HOA fees that are $330 higher than the same single-family homes.
The report also estimates that condo owners can expect to pay an extra $30 per month for each additional bedroom that the unit offers.
A Chicago condo owner can expect to pay an average of $342 in HOA fees monthly. This number is on the higher end of the national averages, but not the highest.
Expect to Pay More with Luxury Amenities
While standard amenities, such as a pool and fitness center, typically run residents around $300 to $500 per month, additional luxury amenities can quickly skyrocket HOA fees.
These upgraded amenities may include outdoor dog facilities, room-service, maid-service, spas, concierge, valet, and 24-hour security. When condominiums provide these extra amenities, monthly HOA fees can easily run residents over $1,000 per month.
When condo shopping it is very important to research the community amenities and the additional costs associated with these benefits.
To successfully budget for your future home, don’t forget to take into consideration all of the condo fees that may come with your purchase.
