Condo Market Is Pretty Bleak Right Now

Wall Street Journal calls it the worst market for condominiums in more than a decade
Posted Jan 2, 2026 4:49 PM CST
As Home Sales Perk Up, Condo Sales Wither
File photo.   (Getty/Douglas Cliff)

The once-reliable condo has become the weak link in the US housing market, reports the Wall Street Journal. In fact, it's "the worst market in more than 10 years," per the newspaper. Condominium prices fell about 1.9% year-over-year in September and October, the steepest drop since 2012, according to Intercontinental Exchange. Single-family home prices have also cooled, but they're still higher than a year ago, underscoring a growing divide: Buyers increasingly favor houses while condos struggle with soft demand, particularly in downtowns and vacation areas.

"There are very few people that are even looking at condominiums," a Phoenix resident attempting to sell his tells the newspaper. Several forces are converging against condo owners. Remote and hybrid work has dulled the appeal of dense urban cores where many condo towers sit, while popular second-home markets have cooled after the pandemic buying spree. Rising condo association fees—driven by higher insurance premiums, maintenance, and new safety requirements—are squeezing affordability and scaring off would-be buyers.

The trend flies in the face of the overall housing market, which is showing what NBC News calls "glimmers of hope" for 2026. One big factor: The 30-year rate is 6.18%, which is still significantly higher than rates in the pandemic years, but it's down from 7% in the past several months, and a dip below 6% is possible, according to Realtor.com economist Joel Berner. "2026 will be better for buyers," he says.

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