D
isclaimer: Links below may earn commissions for Benzinga and Yahoo Finance LLC.

    Real‑estate investor Graham Stephan has long promoted buying property as a path to wealth. In a recent TikTok he warned that condos are “terrible investments” and compared their returns to those of single‑family homes, noting the gap has widened over time. He says single‑family homes win nine out of ten times over condos, except in booming markets where a condo purchase is likened to a lottery ticket.

    Owning a single‑family home means owning the land, whereas a condo owner only owns the unit. Buyers often pay a premium for extra land, especially if they plan to start large families. Condos also carry homeowners’ association (HOA) fees that persist after the mortgage is paid and can rise annually, whereas a fixed‑rate mortgage keeps payments steady.

    Stephan examined the Las Vegas market and concluded that home prices would need to fall 35‑40 % for a mortgage payment to match current rent. Thus, renting is cheaper unless a house drops by that margin. Renting eliminates overhead costs and requires no large down payment.

    If he were relocating now, he would rent rather than buy, though lower rates could make buying more attractive later. Some still choose to buy for family or equity reasons.