Wells: When the starter home isn’t so simple

For years, condos and townhomes were the easiest way to start a homeownership journey. Lower prices and low-maintenance living made sense for first-time buyers and downsizers. The picture is different today. National Mortgage Professional magazine, citing Redfin’s August data, reported that there were roughly 72% more condo sellers than buyers, and the typical condo sold for about 1% less year over year at roughly $350,000 nationally. That imbalance has persisted for months, signaling buyer hesitation tied to carrying costs and complexity.

Colorado adds its own layer of history. A 2024 report from the Common Sense Institute found that condominium construction across 11 Front Range counties was 76% lower from 2018 to 2022 than it was from 2002 to 2008. The report links much of that decline to construction-defect litigation risk and higher project insurance, estimating that insurance can reach about 5.5% of hard costs for condo developments. The study also notes that reforms in 2017 helped at the margins but did not restore a healthy pipeline.

When you connect those dots, you get fewer new, attainable attached homes and an older stock that often needs more maintenance at the same time that HOA reserves and master-policy premiums are moving higher. Buyers have learned to look beyond list price to the true monthly number. That means HOA dues, special assessments, deductible exposure on the master policy, and reserve strength matter as much as granite and stainless steel.

Locally, data through the end of September 2025 shows attached housing in Northern Colorado performing with more volatility than single-family housing. In Fort Collins, new attached listings are up 15.5% year to date, but closings have only slightly moved at +1.1%. Median price has decreased by 1.2% to $400,000, and months’ supply has grown to 3.8 months. By comparison, single-family sales are up 13.4%, with prices holding steady at $625,000 and months’ supply at 2.8 months, confirming that single-family homes are attracting stronger buyer demand. 

In Loveland, attached sales have increased 8.2%, and pending contracts are up 14.4%. Median price has eased slightly, down 2.3% to $405,475, while months’ supply sits at 3.8 months. Single-family homes are also performing well, with sales up 7.3% and median price nearly flat at $534,000. This balance shows attached homes can still find success where HOA dues remain manageable and newer construction meets buyer expectations. 

Windsor has seen the sharpest rise in attached inventory, with new listings up 29.6% and months’ supply climbing to 5.9 months. Closings are down 3.9% though median price is up 5.7% to $440,000, reflecting a mix of newer, higher-end units alongside slower-moving older stock. Single-family homes tell a different story, with closings up 9.3% and median price up 1% to $565,000. 

In Greeley, attached properties have struggled. Pending sales are down 14.1%, closings have fallen 16.9%, and median price is down 5.6% to $334,950. Inventory has risen to 5.2 months. Meanwhile, single-family homes are far steadier, with sales up 0.7% and prices up 2.6% to $448,552. 

For buyers, the key is understanding the full cost of ownership. Reviewing HOA budgets, reserves, and insurance details before making an offer can prevent surprises later. For sellers, transparency about dues, assessments, and maintenance plans builds confidence and can shorten days on market.

Condos and townhomes still play an important role in Northern Colorado’s housing mix, but they now demand more homework and awareness from everyone involved. What was once the simplest way to start has become a more complex choice, requiring clear information, realistic expectations, and a careful look beyond the front door.

Brandon Wells is president of The Group Inc. He can be reached at [email protected] or 970-420-6550.

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