The median price is $343,000. This figure represents the projected price for single-family homes in Columbia by 2025. Let's break down what this number actually means. A family I recently consulted mentioned that as they approach retirement, they have been in a dispute with their neighbor over the property line for several weeks and no longer wish to maintain a single-family home. They expressed frustration over having to call a surveyor. This situation has led many to consider condos or townhomes.

The median price for condos is $187,500, which is an 8% increase from the previous year. This means that the price difference between single-family homes and condos exceeds $150,000. Downsizing could provide significant extra funds. However, there is a cautionary note: it has been confirmed that there are virtually no condo complexes in Boone County that qualify for FHA loans. This means that your options for obtaining a mortgage may be limited, so if you're considering a condo, be sure to check your loan eligibility first.

The property tax rate has been surveyed to be between approximately 0.89% and 1.01% of the average in Missouri. There is considerable variation by county, with the lowest being 0.34% and the highest reaching 1.14%. This indicates that whether for single-family homes or condos, property taxes are relatively manageable compared to Michigan or the East Coast. However, condos incur additional HOA fees, which are separate from property taxes. Condo management fees are included in the debt-to-income ratio during loan assessments, so it's important to calculate whether you can afford these costs on a fixed income after retirement.

Summer electricity bills are also a factor to consider. Ameren Missouri oversees this, and due to a rate increase in summer 2025, the average household will see an additional $14 per month. Winter gas bills have increased by about $8 per month for eastern users and $9 for western users, according to Spire Missouri. Single-family homes, being larger, typically incur higher heating and cooling costs than condos.

Tax relief programs are worth looking into. Single-person households with an income of $30,000 or less, and couples with an income of $34,000 or less, can receive up to $1,100 annually through the Circuit Breaker Credit. Starting in 2026, those aged 65 and older with a household income of $125,000 or less will be able to fully exempt any increase in property taxes from the base year through the newly introduced Homestead Exemption.

Moving to a townhome means that lawn care and exterior maintenance are handled by the HOA budget, but when it comes to replacing major items like roofs, special assessments may arise in complexes with insufficient reserves. It is advisable to check the financial reports and recent special assessment history of the complex before signing a contract. Columbia has a stable rental demand due to the presence of the University of Missouri, but after retirement, it makes sense to prioritize living stability over rental income.

Insurance costs are also a consideration. Condos often have the building insurance covered collectively by the HOA, which can result in lower personal insurance costs compared to single-family homes, but this insurance cost is already factored into the condo management fees. Neighborhoods close to the University of Missouri campus tend to have a relatively high number of condo listings, while areas with dense single-family homes may offer larger yards but come with greater management burdens, so it's wise to choose your neighborhood carefully.

If entry into the condo market is blocked, townhomes can be a realistic alternative. Townhomes generally have less stringent lending regulations than condos and come with smaller yards, making the transition from a single-family home less daunting. However, like condos, townhomes also incur separate HOA fees, so it's important to compare management fee details for each listing.

The family that was in conflict with their neighbor ultimately decided to pursue a townhome with less management responsibility after considering the management fees and loan requirements, rather than a condo. Since tax and loan conditions can vary by county and lending institution, it's essential to consult with a professional before finalizing any agreements. This article does not constitute investment or legal advice.