Before You Buy a Condo, Understand This First

The fact is condominium associations didn’t always exist. The entire framework that makes condo ownership possible in the United States is relatively new. As such, condominium associations, the governing bodies of condominium communities, have a relatively recent history in the United States.

The condominium concept (individual ownership of a housing unit combined with shared ownership of common areas) has roots in ancient Roman and European law but was not formally adopted into U.S. practice until the late 1950s. Before then, Americans seeking multi-family homeownership relied on housing cooperatives, since common law property rules focused on land ownership and did not easily accommodate multi-unit ownership. By the 1960s, legal changes enabled the condominium as a new form of homeownership, and it has since grown dramatically, reshaping laws, housing markets and community living norms across the country.

Legal and Regulatory Evolution

The first condominium statute in the U.S. was enacted in 1958 in the Commonwealth of Puerto Rico, pioneering the legal framework for this new ownership model. Puerto Rico’s law drew heavily from a 1952 Cuban statute, reflecting the civil-law origins of the condo concept. On the mainland, the federal government spurred adoption of condominiums with the National Housing Act of 1961. In 1961 Congress added Section 234 to the Act, authorizing the Federal Housing Administration (FHA) to insure mortgages on individual condominium units. This key legislation made it easier to finance condo purchases and sparked nationwide interest. The FHA also issued a “Model Statute for the Creation of Apartment Ownership,” which many states quickly emulated. By the end of the 1960s, every U.S. state had adopted its own condominium law (often called a Horizontal Property Act or Unit Ownership Act), in many cases borrowing language verbatim from the FHA’s model statute.

This framework still shapes every condo transaction today, from financing approval to whether a building even qualifies for a loan.

In the 1970s and 1980s, condominium law evolved further with efforts to standardize and improve state statutes. The Uniform Condominium Act (UCA) was drafted by the National Conference of Commissioners on Uniform State Laws and approved in 1977 (with final revisions by 1980) to provide a modern, consistent legal framework for condominiums across states. A few years later, the Uniform Common Interest Ownership Act (UCIOA) of 1982 was promulgated, which succeeded and subsumed the UCA and related acts. These uniform laws addressed issues like disclosure to buyers, developer obligations, owners’ rights, and association powers in a more balanced way. Many states adopted versions of the UCA or UCIOA (or incorporated their principles) in the 1980s and 1990s, leading to greater consistency in condo governance rules nationwide.

In Georgia, the legal framework for condominium ownership is now governed by the Georgia Condominium Act, enacted in 1975, which still shapes how condo associations operate today, from governance and assessments to owner rights and association authority. Before that, the state’s first framework for condominium-style ownership was the Georgia Apartment Ownership Act of 1963. The 1975 Act replaced it for new condominiums created on or after October 1, 1975, while older properties established under the 1963 law could continue under that original framework unless they later elected to come under the newer Act. Georgia is also generally viewed as a developer-friendly and association-friendly state, meaning condo associations often have broad enforcement authority and governing documents carry significant weight. For buyers, that makes it especially important to look closely at the bylaws, rules, budgets, reserves, and overall financial health of the association before purchasing.

Economic Impact on Housing Markets

The rise of condominium associations has significantly expanded the U.S. housing market and homeownership opportunities. From virtually zero in 1960, the number of housing units governed by community associations (condos, homeowner associations, and co-ops) has grown exponentially. The most widely cited data on community associations comes from the Foundation for Community Association Research. Recent estimates in the 2023 to 2024 range show there are approximately 358,000 community associations in the U.S., with 74 to 75 million Americans living in them, roughly one in four people. Total housing units in these communities are now estimated to be between 28 and 30 million.

Condominium units and communities make up a substantial portion of this total, roughly 35–40% of U.S. community associations are condo associations. In some urban regions, common-interest developments (especially condos) became the dominant form of new housing.

Condominium associations have generally had a positive effect on homeownership rates and housing affordability. Condo ownership opened the door for many first-time buyers, singles, and downsizing seniors to own property in lieu of renting. Condos are typically less expensive than single-family houses in the same market, so they serve as an affordable alternative that broadens access to home ownership. Condos likely contributed to the rise in the national home ownership rate by adding millions of new owner-occupied dwellings in multifamily settings. Even in expensive urban cores, condominiums offered a comparatively lower price entry point for ownership, thereby bringing more middle-class residents into city centers.

This is one of the reasons condos continue to play such a critical role in markets like Atlanta, where price entry points can otherwise be a barrier.

Social and Cultural Influences

Beyond legal and economic changes, the rise of condominium associations has had a major impact on how people live in shared communities. In a condominium, neighbors not only live in close proximity, they also share ownership and governance of common property, creating a unique form of community. This arrangement can foster a strong sense of fellowship and collective identity within a condo development. It can also work in the opposite direction when rules are ignored or poorly enforced, leading to tension within the community.

It’s also why condo living feels different. You’re not just buying a home, you’re stepping into a shared structure with its own rules, priorities, and dynamics.

Condominium associations have also influenced urbanization and demographic trends. The advent of condos made high-density city living accessible to broader segments of the population, reversing, in some cases, the mid-20th-century flight to the suburbs. Young professionals began to embrace downtown condominium living, drawn by walkable lifestyles and amenities, contributing to the re-population and gentrification of urban cores.

More recently, the pandemic temporarily shifted some of that momentum, as buyers moved back toward the suburbs in search of space, privacy, and flexibility, although many urban markets across the country have since stabilized in meaningful ways.

Notable Case Studies of Condominium Associations

To really understand how condominium associations operate in the real world, it helps to look at a few defining examples:

• Graystone Manor (Salt Lake City, 1960) 
  Graystone Manor holds the distinction of being one of the first condominium properties in the continental U.S. Completed in 1960 in Utah, it was originally conceived as a cooperative apartment building. However, Utah passed a pioneering Condominium Act in 1960 (authored by Keith Romney, later dubbed the “Father of Condominiums”) that allowed Graystone Manor to be legally structured as a condominium. Each apartment unit was sold in fee simple to individual owners, a radical idea at the time, and a condo owners association was established to manage the building. Graystone’s success proved the viability of the condominium concept on U.S. soil. It demonstrated that people were willing to buy apartment units and participate in a shared management arrangement. The project’s smooth implementation in Utah paved the way for other states to follow, and by the end of the 1960s, similar laws and condo developments had spread nationwide. Graystone Manor thus stands as a landmark in U.S. real estate history. The prototype of the modern condo association.
• Parkchester (Bronx, New York)
  Parkchester is a celebrated example of a large-scale conversion from rental housing to condominium ownership. Built between 1938 and 1942 by MetLife, Parkchester is a sprawling 129-acre complex in the Bronx with 171 buildings and over 12,000 apartments. By the 1970s, the aging rental complex was in decline, and in 1974 real estate investor Harry Helmsley began converting the units into condominiums. The north section converted in 1974 and the south section in 1986, creating the Parkchester North and South Condominium associations. This conversion was one of the largest in U.S. history and turned Parkchester into a “city within a city” of condo owners. The result was largely positive: over 12,000 affordable units were made available for purchase by families at market rates, allowing many longtime renters to become owners. Buyers could invest in their own apartments rather than continue renting, building equity and local pride. Even decades later, Parkchester condos remain relatively affordable (with resale prices for some units under $200,000), and the community is known for its stability and strong identity. The Parkchester case study highlights a success in using the condominium model to preserve and reinvigorate a giant housing development, preventing its deterioration by instilling a pride of ownership among residents. It also showed how a well-run condo association (Parkchester has professional management and active boards) can handle the governance of what is essentially a small town of 40,000+ residents.
• Champlain Towers South (Surfside, Florida) 
  The Champlain Towers South condominium will be remembered for one of the most tragic failures in condo association history. Built in 1981 as a 12-story, beach side condo in the Miami area, Champlain Towers South housed 136 units and their owners under a typical Florida condo association. For decades it was considered a successful community, but behind the scenes serious structural problems were growing. By the late 2010s, engineers warned of concrete deterioration in the building. The association’s board struggled with how to fund and execute the extensive repairs, which were very costly. In June 2021, before repairs could be completed, a large portion of the building collapsed catastrophically, killing 98 people. This disaster shocked the nation and cast a harsh spotlight on condo maintenance and governance. Investigations revealed that the association had deferred critical repairs partly due to disputes and delays in raising the required $15 million special assessment. The Champlain Towers tragedy underscored the dire consequences that can result from an association’s failure to address maintenance issues in a timely manner. It prompted Florida and other states to re-examine laws on building inspections and reserve funds for condos. While the exact causes of the collapse are complex (involving design and construction flaws as well), the case is a sobering example of a condominium association under extreme challenge, and ultimately failing, in its duty to safeguard the property and residents. The Surfside collapse has since become a catalyst for reform, but it remains a poignant case study of an association’s “worst-case scenario.”

These examples demonstrate the wide spectrum of condominium association experiences. From Graystone Manor’s pioneering formation, to Parkchester’s community-building success, to Champlain Towers’ heartbreaking collapse, each story offers lessons. Graystone showed that condos could work; Parkchester showed the social and economic benefits of converting to condo ownership on a grand scale; Champlain Towers showed the critical importance of sound governance and proactive maintenance. Together, they trace an arc from optimistic beginnings to mature challenges in the condominium association movement.

Challenges and Controversies Over Time

Condominium associations have confronted a variety of challenges as they have evolved. These include governance disputes, legal conflicts over rules and restrictions, and ongoing financial and maintenance pressures.

One of the biggest challenges is balancing individual ownership with collective responsibility. Associations must enforce rules, manage budgets, and maintain shared spaces, all while keeping residents aligned. When this balance breaks down, conflicts can arise, sometimes leading to legal disputes or financial strain.

Proper financial planning, especially maintaining adequate reserves for long-term repairs, remains one of the most critical responsibilities of any association. When overlooked, the consequences can be severe.

My Final Thoughts

The history of condominium associations in the United States is ultimately a story of how ownership evolved. Condos made it possible for more people to own in places where it previously wasn’t realistic. They reshaped cities, introduced shared governance, and created an entirely new layer of complexity in real estate.

And if you’re buying a condo today, you’re not just buying a unit. You’re stepping into a system that has been evolving for over 60 years. What the next 60 years look like will depend on how these communities evolve, and whether they can balance structure with the expectations of modern owners.