- A townhouse is a type of home that shares at least one wall with an adjacent dwelling.
- Townhouses can provide both the amenities of city living and the privacy of owning a single-family home.
- But they aren't a good fit for everyone. If you need more space or want to avoid an HOA, you might prefer a different type of home.
A townhouse can offer the best of both worlds when living in an urban environment — you get the proximity to the city and all its amenities, plus the freedom and space that comes with owning a single-family home.
But buying a townhouse can mean different things depending on where you live and the community you're thinking about buying in. Let's take a closer look at what exactly a townhouse is and who this type of home could be a good fit for.
Definition and characteristics of a townhouse
What makes a townhouse unique?
The term "townhouse" can be used to describe a variety of different property types and styles. But its main distinguishing feature is that it's a home that shares at least one wall with an adjacent home.
Common architectural features of townhouses
Townhouses often have multiple stories and can be tall but narrow. They may have a small backyard. In big cities with high population density, townhouses are typically built in rows along the city's streets, with homeowners sharing a wall on both sides of their homes.
You can find townhouses in suburban areas, too, but they often look a little different. Where population density is lower, properties labeled "townhouses" may share a wall with just one other home and may only be one or two stories high. They often also have bigger yards and larger footprints compared to the townhouses you'll find in cities.
Differences between townhouses, condos, and single-family homes
Townhouses are often single-family homes, though in some cases, they can be condos. Confused? Let's define some things to clarify.
A single-family home is a dwelling that houses one family or household and has its own utilities and HVAC systems. Though the term "single-family home" is often used to refer to detached houses that stand alone, a townhouse is considered a single-family home as long as it's separated from adjacent units with a ground-to-roof wall, according to the U.S. Census Bureau.
Condos can come in many different forms, since "condominium" actually refers to a type of ownership. With condos, you only own the interior walls of your unit and everything within those walls. Everything else is co-owned by all the owners within the condo association. So, it's possible for a townhouse to be set up as a condo.
Townhouse HOAs
Many townhouses are part of homeowners associations, or HOAs. In neighborhoods that are governed by HOAs, homeowners have to pay a regular fee that covers the maintenance and repair of common areas. They also often have rules that the homeowners within the HOA have to follow, such as what types of changes can be made to the exterior of your home or how tall your grass can be.
Pros and cons of living in a townhouse
Advantages of living in a townhouse
Owning a townhouse may be more achievable for first-time homebuyers compared to a detached home. Because townhouses typically have smaller footprints, they can be more affordable (though if you're buying in a major city in a sought-after neighborhood, you can expect townhouses to command top dollar). A smaller townhouse can also be easier for new homeowners when it comes to maintenance, especially if the HOA takes care of some of the exterior upkeep.
If you're looking for city living but want a little more of your own space, a townhouse could be a better fit compared to an apartment-style condo or co-op.
"People who value their privacy love townhouses," says Guy Hobson, a real estate agent with Coldwell Banker Warburg. "They come and go without the eyes of building staff and neighbors. The private garden comes in handy as a place to be outside without having to leave your property."
Potential drawbacks of owning a townhouse
"Townhouses are typically multiple floors and don't always have an elevator, so it is lots of up and down stairs," says Hobson. If climbing stairs every day isn't for you, a townhouse might not be the best fit.
Hobson also notes that these homes can be "natural light challenged" since they tend to be relatively narrow, with no side windows.
Because you're sharing at least one wall with your neighbors, townhouses can be somewhat noisy. If you're worried about overhearing your neighbors as they go about their daily business (or having them overhear you), you might prefer a detached dwelling.
You should also consider whether you want to live in a community with an HOA. Not everyone likes HOAs since they can be expensive, and some HOAs have strict rules dictating what members can and can't do with the homes they own.
Be sure to get any townhouse you're thinking about purchasing inspected, especially if it's an older home.
"Historic houses can sometimes have real, hidden issues that can be costly down the line if not spotted by the inspector," Hobson says.
Townhouse ownership and costs
Typical costs associated with owning a townhouse
Owning a townhome is similar to owning any other type of home. If you use a mortgage to purchase the property, you'll make a monthly mortgage payment. Your monthly payment amount will be determined by how much you borrow and your mortgage rate.
You'll also pay property taxes and homeowners insurance premiums. If you have a mortgage, your lender will typically include those costs in your monthly payment.
Homeowners insurance on a townhouse may be slightly cheaper than insurance for a freestanding home, depending on the size of the townhouse and its building materials. If your townhouse is a condo, you may only need insurance for the inside of the home if the condo association's insurance covers the exterior. This could be more affordable than a standard insurance policy for a single-family home.
Homeowners association (HOA) fees
HOA fees vary quite a bit; some homeowners may pay just $100 a month, while high-end communities can charge more than $1,000 a month. You can't skip out on this fee, so make sure you can afford it before you buy in a neighborhood with an HOA.
Shared responsibilities with neighbors
If you own a townhouse, you may need to collaborate with your neighbors from time to time on certain repairs. This is particularly an issue when it comes to shared roofs.
If the townhouse roof needs to be repaired or replaced, it generally makes more sense to have the entire job completed at one time. But that means you'll need to work with your neighbors to agree on how to get the job done and how to share costs.
Who should consider buying a townhouse?
A townhouse can be a good fit for lots of homebuyers, but townhouses near city centers can be a particularly good fit for young professionals and smaller households. Being near amenities and public transportation while also having your own backyard is one of the benefits of townhouses that you won't often get with other types of housing.
If you have a larger family or a lot of kids, a city townhouse could feel cramped compared to a detached home. But families might like townhouse-style living in less dense areas of the city or the suburbs, where units may be more spacious and affordable. Retirees may also like living in these types of townhouse communities, particularly in ones where the HOA takes care of most of the maintenance.
What is a townhouse FAQs
You can't compare townhouses and condos because they're two separate concepts. Townhouses are a type of dwelling, while a condo refers to how a property is owned. When you own a condo, you own your individual unit, and everything else, including the land the condos sit on, is typically shared by the owners within the condo association. So a townhouse can be a condo.
Townhouses can be cheaper than freestanding single-family homes since they're often smaller. But they aren't always cheaper, especially if you're comparing townhouses in the middle of major cities to single-family houses in a cheaper nearby suburb.
Whether you own the land in a townhouse depends on how ownership is structured. If a townhouse is a condo, you might share ownership of the land with other owners in your condo association. But if it's a single-family home on its own parcel of land, you likely own the land your home sits on.
Maintenance responsibilities in a townhouse depend on whether you have an HOA and what the HOA is responsible for. Often, townhouse owners are responsible for their own exterior and interior maintenance, though some HOAs may provide services like lawn mowing or snow shoveling.
