There was someone who opened a notebook and started writing down the monthly expenses for a single-family home and a condo line by line. They were hesitant about the condo due to the HOA fees, but after receiving a roof replacement estimate, their perspective changed a bit. So, let's take a look at the actual numbers.

The first question that comes to mind is which option actually costs less. When comparing single-family homes, townhomes, and condos side by side, we can summarize it like this:

• Single-family home - Offers a large yard and personal space, but you have to handle significant expenses like roof and HVAC replacements on your own.
• Townhome - The HOA manages the exterior and common areas, making monthly expenses predictable.
• Condo - Has the least management burden, but the HOA fees can be relatively high compared to the purchase price.

First, let's look at the electricity costs. The average electricity rate in Salt Lake City is about $0.14 per kWh, with an average monthly bill around $172. Rocky Mountain Power applies seasonal rates, with summer peak hours costing about 18.5 cents per kWh and winter peak hours at 15.9 cents, making summer cooling costs a bit higher. Single-family homes often exceed this average due to larger heating and cooling areas, while condos, with units stacked above and below, tend to have lower heating and cooling costs due to less exposure of exterior walls. Salt Lake City has a basin topography, which means that while daytime temperatures can rise significantly in the summer, they drop sharply at night. This large temperature variation can lead to significant differences in heating and cooling costs depending on insulation quality.

So, what about the HOA fees? In Salt Lake City, nearly half of the newly listed properties have HOA fees, and the median HOA cost citywide is $170 per month, making it the second highest in the state. Condos and townhomes typically range from $200 to $350. However, this cost includes exterior maintenance, roof repairs, landscaping, and sometimes even part of the insurance premium, making it easier to predict compared to unexpected repair costs for single-family homes.

What about the purchase prices? This year, the median sale price in the city is $586,250, with single-family homes at $676,625 and condos at $465,000, showing a significant difference. Townhomes are around $585,000, close to the overall median. If you want to leave a substantial amount from your retirement funds, condos are definitely more advantageous.

Now, how much are property taxes? The effective tax rate in Salt Lake County is 0.56%, and the annual tax amount for a median home is about $2,726. If you are over 67 years old and your household income in 2025 is below $44,221, you can apply for the circuit breaker, which adjusts property taxes to prevent them from becoming excessively burdensome relative to income. This can lower the taxable value by 20% and provide a tax credit of up to $1,412, with the application deadline on September 1. Many people moving from places like California feel that Salt Lake City's property tax rate is low, but missing out on the circuit breaker application can mean losing out on a significant amount. Since the income criteria and age requirements are adjusted slightly each year, it's a good idea to check again annually. Additionally, when it comes to school districts, many people want to find neighborhoods with good schools to be close to their children or grandchildren, but such neighborhoods tend to have more townhomes or single-family homes available than condos, which can narrow down the options. School district boundaries can change each year, so please verify the assigned school based on the property address.

Ultimately, this person concluded that selling their single-family home and moving to a condo was the best choice. By thinking of the monthly HOA fees as part of their maintenance budget, they felt much more at ease without worrying about the roof or boiler. However, the requirements for property tax reductions and HOA regulations can vary by complex and application year, so please verify again based on the specific address before submitting any documents.

This article is not investment or legal advice, and it is recommended to consult real estate and accounting professionals before making any contracts or applying for tax reductions.