A retiree who has lived in the same house in Albany for nearly 40 years recently inquired about estimates from insulation contractors. It's natural to wonder whether it's better to insulate an old single-family home, which incurs high heating costs in winter, or to move to a condo that requires less maintenance. To answer this question, several factors need to be considered in order.

The first question that comes to mind is how the property tax on the current home compares to other areas. Albany's effective property tax rate is around 2.26 percent, with a median property tax bill of $5,353 per year and a median home price of $238,542 (according to Ownwell, Albany County). Compared to the average effective tax rate of 1.90 percent for New York State, Albany's rate is higher, but the home price is below the state median of $312,500, resulting in actual bills that are similar to the New York State median of $5,420.

The next area of concern is heating costs. The upstate New York region, including Albany, is served by National Grid for gas supply, and the expected average bill for the winter season of 2025-26 is projected to be $1,121, an 8 percent increase from the previous year's $1,041. Households using about 713 therms (a unit of gas consumption) may see bills increase by up to $66, or about 10 percent, from November to March compared to last year. Older homes with poor insulation will feel this increase more acutely.

So, which is better: insulation work or moving? Insulation work requires an initial investment but can reduce heating costs each year, while moving to a condo often includes overall building insulation and exterior maintenance in the HOA fees, reducing personal responsibilities. However, whether heating is included in the condo fees and whether there are individual meters varies by building, so it's important to check directly with the management office when viewing properties.

Another common question is whether there are tax relief options for seniors. New York State's Enhanced STAR program (which provides school tax reductions for homeowners aged 65 and older) requires that at least one applicant be 65 or older, and the combined adjusted gross income of the homeowner and spouse must be $110,750 or less as of 2026. The application deadline is typically March 1 in most areas, so it's advisable to prepare in advance. For households under 65 or exceeding the income limit, only the Basic STAR (a basic school tax reduction available regardless of age) applies, and it does not automatically convert to Enhanced STAR, so if a birthday approaching 65 is coming up, it's wise to inquire about renewal with the local assessor's office in advance.

Insurance premium differences are also worth considering. Homeowners of single-family homes bear the full risk of major equipment failures, such as roofs and plumbing, under homeowner's insurance, while moving to a condo often means that the building's exterior and common facilities are covered by the building's master insurance, allowing individuals to maintain insurance focused on their interiors. Given Albany's heavy snowfall, issues related to roof load and pipe bursts are common, so comparing estimates to see if this difference is reflected in actual insurance premiums can be helpful.

If insulation work is chosen, you may wonder which areas to prioritize. Replacing windows, reinforcing roof insulation, and replacing old boilers are known to significantly reduce heating costs. However, the scale and cost of the work can vary greatly from home to home, so obtaining estimates from multiple contractors and comparing the expected heating savings with the costs of the work seems to be a reasonable approach.

In summary, whether to continue maintaining an old home with poor insulation or to move to a condo with less management burden should be calculated based on construction costs, expected heating savings, and the availability of Enhanced STAR relief. Taxes and fees can vary by county and building, so this article is not investment or legal advice, and it is recommended to consult with a professional before making any actual decisions.