Recently, a couple preparing for retirement brought in a spreadsheet. They were comparing the annual maintenance costs of their current single-family home with the HOA fees of a condo they were considering. Looking at the numbers made it confusing to determine which option was better. Recently, there has been an increase in retirees doing this kind of comparison themselves.

The median home price in Indianapolis for 2026 is $260,000, with a price per square foot of $156. While the sale price of condos tends to be lower, HOA fees are an additional cost. The median HOA fee for condos in Indianapolis is $329 per month, which is more than double the national average of $135. Since 84.8% of condo and townhome listings have HOA fees, it's easy to overlook this expense if it's not included in the overall calculation.

The costs of maintaining a single-family home are also significant. In the Indianapolis area, AES Indiana supplies electricity, and as of January 2026, the average monthly electric bill is $141.82, with a rate of 16.19 cents per kilowatt-hour. During winter, it's common for households to exceed $200 due to heating demands. Additionally, AES Indiana has recently implemented a $17 increase, about 12%, and has proposed an additional $21 increase per month to the regulatory agency by 2027.

When comparing the heating and cooling costs of a single-family home with the HOA fees of a condo, a clearer picture emerges. Single-family homes require heating and cooling for larger areas, and unexpected major expenses like roof or exterior wall repairs can arise. Condos have fixed monthly HOA fees, but external maintenance is usually included, reducing the risk of sudden large expenses.

• Single-family home - higher sale price but no HOA, large area for heating/cooling, unpredictable repair costs
• Condo/townhome - lower sale price but fixed monthly HOA fee, external maintenance included in management fees
• Active senior 55+ community - HOA fee includes community facility usage, single-story structure reduces stair burden

In terms of property taxes, Indiana is relatively favorable. If you are over 65, you can keep the annual property tax increase to 2% compared to the previous year through the Over 65 Circuit Breaker. The income limit for the 2026 tax year is $34,494.86 for individuals and $45,993.15 for couples, and there is also a new Over 65 Credit program that provides a maximum deduction of $150. It's important to remember to apply by January 15 each year to receive benefits for that year.

Insurance costs are also worth comparing. A single-family home requires personal insurance to cover the roof, exterior walls, and garage, while condos or townhomes have the HOA master insurance covering the building structure and common areas, allowing individuals to only insure their personal belongings. This reduces personal insurance costs, but it's important to consider that the insurance cost is already included in the HOA fees. If considering an active senior 55+ community, it's advisable to directly inquire with the management company about how insurance, landscaping, and facility usage fees are divided within the HOA fees before signing a contract.

The couple who initially brought in the spreadsheet ultimately compared the two items side by side for 12 months. They concluded that the combined amount of heating and cooling costs and expected repair savings for the single-family home did not differ significantly from the HOA fees of the condo. In such cases, factors like potential sale price appreciation or future management burdens, which may not be clearly reflected in the numbers, often influence the final decision.

Market prices and fees can vary significantly by county and property, so it's advisable to check the actual HOA regulations and property tax bills for the areas of interest. School district information should also be referenced through GreatSchools or Niche ratings, but it's necessary to reconfirm assigned schools before purchasing. This article is not investment or legal advice, and consulting a professional before making any contracts is recommended.