It’s no surprise that active homebuyers in today’s market are facing an uphill battle between a lock-in effect, rising interest rates, and just a lack of housing available to purchase across the nation. In major housing markets, homebuyers are faced with a grim reality: there are more homebuyers than homes available. This is why residents in the District of Columbia are turning to condos as mortgage rates inch back up to record-high numbers, Axios recently reported.

Understanding the Condo Increase in Washington

Active homebuyers who would normally be looking at single-family homes are now directing their attention to condos. Many are finding it as an alternative solution to the current housing market, and they are scooping up condos quickly.

June data from Zillow shows that the median sales price for a condo in D.C. was $260,606.03 cheaper than a single-family home, according to Axios.

However, even in major cities, condos are still relatively expensive when compared to single-family homes, so active homebuyers are comparing locations with prices, and many buyers are turning to the suburbs to get the most for their money.

“In D.C., median condo sales prices were down 6.7% from May to June — and down 8.5% year-over-year. Meanwhile, in Montgomery County, they shot up 9.7% in one month.” Axios also concluded that “Condo prices are coming down in D.C. because there’s only a small pool of people who can afford to buy right now.”

Condos in Washington, D.C. are also decreasing because buyers aren’t satisfied with the flashy amenities the current condos offer with their current pricing.