With mortgage rates hovering near 7%, still-astronomic home prices, and bone-dry inventory levels across the nation, the monthly cost to own a home—especially for those who haven’t built equity by owning already—has never been higher. It has caused many wannabe first-time homebuyers to throw in the towel.

But there is still hope! For many newbies, it might just be a matter of making a shift toward something they can better afford—like a condo or townhome. These lower-cost homes have historically been a stepping stone for buyers looking for a less expensive alternative to a single-family home. And now is no different.

Condos and townhomes are typically priced at about 5% to 7% below the price of a single-family home—sometimes much more—though they appreciate a bit more slowly.

“Condos can help prospective homebuyers who perhaps have a smaller budget, but who are really determined to get a foothold in the market and start to accumulate some equity,” says Realtor.com senior economic analyst Hannah Jones. “It can be a really great entry point.”

These comparisons come with caveats, most notably that the price per square foot for condos and townhomes is paradoxically higher, because they’re smaller than single-family homes. Condos and townhomes are concentrated in the center of urban hubs, whereas the peripheral suburbs are reliably filled with single-family homes.

It might seem a bit confusing, but we break it down for you! We’ve crunched the data to find the cities where buyers can get the biggest discounts by purchasing a condo or townhome instead of a traditional single-family home. For cash-stretched, first-time homebuyers, it could be a lifeline.

We compared November median list prices for both housing types: single-family homes and the condo/townhome/row home/co-op category. Our criteria: cities where median condo prices are below $525,000 (approximately 125% of the national median) to avoid extremely expensive condo markets (such as Park City, UT, where million-dollar condos are considered a steal). We also focused on larger cities with robust economies, ensuring at least 100 average monthly condo/townhome listings, 300 average monthly single-family home listings, and 500 total average monthly listings over the past year. Finally, we selected the city with the largest discount in each state.

We uncovered impressive savings spanning a diverse array of U.S. cities, from retiree-friendly South Florida to quirky Portland, OR, and from the beaches of South Carolina to sun-drenched Arizona.

“This is how you can get a price point down in the threes [$300,000–$400,000], which is the starter price point these days,” says John Hunt, the principal at MarketNsight, a real estate data tracking firm. “It’s got to be the higher density, smaller square footage product. The two biggest demographic groups we’re thinking about here are millennials and boomers, who don’t need that 3,000-square-foot, single-family detached home.”

Here’s where buying a condo or townhome in 2024 can offer the best savings.

1. Delray Beach, FL

Median condo/townhome/row home/co-op list price: $250,000
Median single-family home list price: $1,199,000
Condo discount: 79.1%

A gem on Florida’s southeastern coast, Delray Beach offers a blend of luxury and affordability in its condo market, with a nearly 80% discount compared with single-family homes in the area.

Of course, the high median list price for single-family homes here—$1.2 million—largely accounts for the list-topping savings, but with median condo prices at $250,000, they’re quite affordable on their own.

Delray Beach is known for its beautiful beaches and vibrant arts scene. It’s a popular destination for retirees and tourists alike, with toasty weather that allows outdoor activity year-round.

2. Reno, NV

Median condo/townhome/row home/co-op list price: $344,500
Median single-family home list price: $790,975
Condo discount: 56.4%

Along the western edge of Nevada, sidled up against the California border, you’ll find the state’s capital city, Reno.

Dubbed the “Biggest Little City in the World,” because of the metropolitan feel and big-city casinos in a relatively small town, Reno offers significant savings for those looking at the condo market. Here, a median-priced condo is about less than half the price of a single-family home.

On top of the big savings, being nestled at the base of the Sierra Nevada makes Reno attractive to outdoor recreation enthusiasts. Having natural wonders like Lake Tahoe less than an hour away adds to its allure for condo buyers looking for a balance between city living and outdoor adventures.

3. Galveston, TX

Median condo/townhome/row home/co-op list price: $239,875
Median single-family home list price: $522,500
Condo discount: 54.1%

Next up is the Gulf Coast of Texas, where condo buyers in the city of Galveston stand to spend less than half of what they would on a single-family home in the area.

Galveston is unique for its long-documented history as the home of the native Karankawa people, before European explorers landed there in the 1500s. Later, it was the site of one of the deadliest natural disasters in U.S. history, the “Great Galveston Hurricane” of 1900.

It’s also the only city on our list that occupies what is actually an island, separated from the Texas mainland by the West Bay. Galvston Island is lined with miles of beaches, offering another benefit to living there.

“In Galveston, buying a condo allows you to enjoy the beachside lifestyle and access to larger metro areas at a more affordable price,” says Realtor.com analyst Jones, noting the proximity to Houston.

4. Myrtle Beach, SC

Median condo/townhome/row home/co-op list price: $229,225
Median single-family home list price: $444,198
Condo discount: 48.4%

Myrtle Beach is one of the prime tourist destinations on the East Coast, known for its seaside attractions—including one of the tallest Ferris wheels in the country.

It’s also where homebuyers can find a median-priced condo for only $229,000, well below the national median home price and nearly half of a single-family home in the area.

The sweet condo prices also come with a unique lifestyle that’s geared toward leisure. There are plenty of golf courses, of course, in addition to the miles of boardwalks, white-sand beaches, and festivals like the Carolina Country Music Fest.

5. St. George, UT

Median condo/townhome/row home/co-op list price: $378,750
Median single-family home list price: $650,000
Condo discount: 41.7%

In the southwestern corner of Utah, on the border with Arizona and about 10 miles east of where Nevada begins, you’ll find the small city of St. George. The city is known for its stunning red cliffs and quick access to Zion National Park, about a 30-minute drive to the northeast.

Single-family home prices here have settled at around $650,000 in recent years, about 50% more expensive than the national median, after somewhat modest price gains in the past few years. But condos here are below the national median condo price of $399,000.

Mild winters and lots of sunshine make it a year-round paradise for outdoor obsessives.

6. Baton Rouge, LA

Median condo/townhome/row home/co-op list price: $190,475
Median single-family home list price: $325,000
Condo discount: 41.4%

Louisiana’s vibrant capital city, perched on the banks of the Mississippi River, offers an impressive discount for home shoppers eyeing condos and townhomes. With a median condo price of less than $200,000, Baton Rouge has the most affordable price point of any place on our list.

Baton Rouge is also known for its blend of Southern charm, deep history, and bustling urban life. There’s also a lively music scene and an array of great Cajun and Creole cuisine. And as home to Louisiana State University, the city retains a youthful vibrancy.

“Baton Rouge, with its university town dynamics, offers condos as a feasible choice for those sticking around after they finish their education, or for newcomers moving into the city,” Jones.

7. Phoenix, AZ

Median condo/townhome/row home/co-op list price: $349,450
Median single-family home list price: $581,750
Condo discount: 39.9%

In the heart of Arizona’s Sonoran Desert, Phoenix is a true Sun Belt boomtown. It’s renowned, of course, for its year-round sunshine—including some thermometer-busting temps in summer—but also a vibrant arts scene fostered in the center of the city’s historic downtown, the Roosevelt Arts District.

Phoenicians can enjoy outdoor activities nearly year-round, whether it’s hiking the nearby mountains that encompass the Valley of the Sun or hitting the links at one of the area’s numerous golf courses.

The condo market in the state’s capital city offers a nearly 40% discount compared with single-family homes. And although single-family homes have swelled in value, hitting more than a 30% premium compared with the national median price, condos here are about 13% below the national median.

8. Denver, CO

Median condo/townhome/row home/co-op list price: $452,500
Median single-family home list price: $750,000
Condo discount: 39.7%

Denver, the “Mile High City” and the capital of Colorado, is known for its picturesque Rocky Mountain views, a relentless enthusiasm for the outdoors, a lively urban core, and, of course, its pioneering legalization of cannabis.

There’s easy access to great skiing, hiking, and any number of other outdoor activities. Combined with a thriving arts and music scene, Denver caters to a diverse set of lifestyles.

It’s also where condo buyers can get a major discount compared with single-family homes. This comes with a caveat, which is that condos in Denver are near the upper threshold we used for consideration. (We limited to median prices at or below 125% of the national median.) So while these condos are somewhat pricey, they’re far below the single-family home prices here, which saw a meteoric rise in the 2010s.

“Denver’s condo market presents a budget-friendly alternative for homebuyers in this high-priced area,” Jones says, “especially in the urban center.”

9. Portland, OR

Median condo/townhome/row home/co-op list price: $392,449
Median single-family home list price: $650,000
Condo discount: 39.6%

The city of Portland has come to define Pacific Northwest charm and the eccentric inhabitants it attracts. It’s also a great place to find a relatively inexpensive condo, with a $250,000-plus discount compared with single-family homes.

For those who prize the great outdoors, the arts, and eco-friendly living, the “City of Roses” offers affordability, cozy neighborhoods with distinct personalities, and a pervasive sense of community. It’s a one-of-a-kind urban experience.

10. Raleigh, NC

Median condo/townhome/row home/co-op list price: $365,625
Median single-family home list price: $599,675
Condo discount: 39.0%

Raleigh, one of the three vertices of North Carolina’s Research Triangle, presents an appealing condo market with a median price that’s about 10% below the national average and 40% below that of the city’s single-family homes.

For John Hunt, the real estate researcher based in Raleigh, the concentration of condos in the center of the city makes them all the more appealing for first-time buyers or retirees who favor amenities and attractions over sprawling living space.