We study the phase structure of the abelian Higgs model in three dimensions based on perturbation theory and a set of gauge independent gap equations for Higgs boson and vector boson masses. Contrary to the non-abelian Higgs model, the vector boson mass vanishes in the symmetric phase. In the Higgs phase the gap equations yield masses consistent with perturbation theory. The phase transition is first-order for small values of the scalar self-coupling λ, where the employed loop expansion is applicable.