Condo prices are rising faster than single-family home prices, according to the Trulia [1] Price Monitor [2], which observes asking prices on a monthly basis. Asking prices for condos rose 7.3 percent year-over-year in September, while asking prices for single-family homes rose 6.0 percent.
Condo price gains outpaced single-family price gains in 18 of the largest 20 condo markets, according to Trulia.
Seven of the 20 markets posted double-digit condo price gains over the year in September, including Miami (17 percent); Denver, Colorado (15.5 percent); West Palm Beach, Florida (15.2 percent); San Francisco (12.7 percent); Chicago (10.9 percent); Middlesex County, Massachusetts (10.4 percent); and Minneapolis-St. Paul, Minnesota-Wisconsin (10 percent).
Overall asking prices increased in 92 of the largest 100 metros in the U.S., with several Southern metros taking the lead. In fact, five of the top 10 metros with the largest price gains over the year in September are located in the South. Miami topped the list with a 14 percent price gain.
In four of the 10 metros posting the highest price gains in September, the price increase was lower than the annual price gain posted last September. For example, prices in Ventura County, California, rose 12.4 percent year-over-year in September, down from a 20.2 percent posted last September. Oakland, California; Detroit, Michigan; and Atlanta also fell into this category.
Home prices rose 0.8 percent month-over-month in September, according to Trulia.
Rents rose 6.5 percent over the year in September, similar to the pace of home prices. Apartment rents outpaced single-family rents—6.9 percent, in comparison to 5.2 percent. At the same time, vacancy rates for multi-family units are falling, while single-family vacancies "remain elevated," according to Trulia.
"Despite the multi-unit construction boom, the cost of living in these buildings is rising faster than in single-family homes—both for renters and buyers," according to Trulia.