What Is A Townhouse? A Comprehensive Guide

Traditional single-family homes, apartments, duplexes, condos and townhouses – oh my! The possibilities for home buyers are plentiful. While you might know the differences between an apartment and a house, there are tons of other types of homes that fall somewhere in between. Whether you are dreaming of moving or in the middle of your house hunt, townhomes can be a great option for many people.

Let’s break down some of the most common questions about townhouses: what they are, how a townhouse differs from other home types, and what the pros and cons of townhouse living are.

What Is A Townhouse?

Common Characteristics Of Townhouses

Here are a few of the typical characteristics of townhouses.

• Single-family living: Due to their affordability and typical size, most townhomes are owned by single families, though in major cities it’s not uncommon for them to be converted into apartments for multiple renters. But unlike apartments or some condos, townhouses usually focus on imitating the layout and design of a traditional house, allowing for the same function and homey feel as a traditional single-family home.
• Shared walls between neighbors: The most distinct characteristic of townhouses is the fact that they’re right next to each other. What does that mean for the walls between each unit? With just a single wall – or in some cases, two walls with very little space in between – separating you from your neighbors, it’s best to be friendly and courteous to make the most of the townhouse lifestyle. It also tends to make the end-unit townhouses the most desirable, because they only share a neighbor on one side.
• Shared outdoor areas: With townhouses not only will you be sharing walls and a roof, but you’ll likely have a shared yard or outdoor living space with your neighbors as well. Although, depending on your homeowners association (HOA) and location, you may be fortunate enough to get full ownership of a yard or patio in the back. These spaces will sometimes be maintained by the HOA unless an owner puts up a border, like a fence. In these cases, you’ll likely be solely responsible for the upkeep of these areas, while shared spaces may be maintained with HOA funds. But if you’re looking at townhomes in a densely populated area, like New York City or Chicago, where greenery is rare, having your own outdoor space isn’t likely.
• HOAs: Since townhomes are connected to each other, HOAs are used to manage the shared expenses and amenities between owners. While HOAs certainly have many benefits, like covering the cost of maintenance or shared amenities, they can also be known for notoriously strict rules – but that’s not the case for most townhouse HOAs.

Townhouse Vs. Condo Vs. Duplex

The terms townhouse, condo and duplex are sometimes used interchangeably, but these are actually three distinct types of housing. Let’s dive into their differing characteristics.

When it comes to living in a condo, although the HOA may be more restrictive than in a townhouse, they do cover the costs of shared amenities – like a pool, clubhouse or workout space – in addition to outdoor maintenance. This typically includes everything from trash or snow removal to repairing damage to the condo’s structure to seasonal landscaping.

Where townhouses usually come out on top is the freedom they can provide homeowners with compared to a condo. With a condo, you may be limited on everything from what you can have hanging on your front door to when you can take out the trash, while townhouses offer more wiggle room for individual preferences.

Duplexes are a single structure that includes two residences with separate entrances under the same roof, while townhouses are several individual residences linked together with shared walls, but which are owned by individual families or homeowners. Duplexes offer space for two families to live apart from each other, but in the same single-family home, sometimes even sharing common areas or rooms.

Duplexes are great because they empower the owner to become a landlord and make money off of renting the second half of the unit out. This gives them a great return on investment compared to just living in an entire home themselves.

What To Know When Buying A Townhouse

Buying a home is no small commitment, and if you aren’t familiar with living in a townhouse development, we strongly encourage you to do your research. Even better, reach out to someone who has lived in a townhome for even more insight, and be sure to consider each of these factors as they pertain to your own unique wants and needs:

• Cost: Although many townhomes have attractively low prices, keep in mind that you will also need to pay HOA fees and possible assessments over time. You may also have to go in with other owners on certain upgrades to the entire structure, like replacing the roof.
• Amenities: Understand what amenities are included with your townhome – for some of us, a gym, pool, recreational area or fitness center within walking distance may be a huge plus.
• Neighborhoods: While it’s always smart to get to know a neighborhood before moving there, with townhouses you’ll quite literally be closer than ever to your neighbors. So, be sure to do your research – is the area kid-friendly? Pet-friendly? What’s the age range of residents?
• Planning for the future: Townhomes may not be wise long term – their multistory layouts offer limited accessibility, which can quickly become an issue for older residents.

Townhouse Pros And Cons

Townhouses can be beneficial for home buyers depending on their situation, but they may also come with some drawbacks.

Benefits Of Townhouses

Some of the pros of buying a townhouse might include:

• Close-knit neighborhood: Having neighbors share a wall with you can lead to some great connections and neighborly relationships. However, this is not guaranteed, and some people will keep to themselves – or worse, stir up trouble – no matter the circumstances.
• Affordability: Townhomes are typically more affordable than traditional single-family homes or condos, especially for first-time home buyers.
• Maintenance: Usually, townhomes are easier to maintain due to their smaller outdoor spaces or an HOA that takes care of it for you.
• Freedom: The interior of townhomes can typically be renovated and decorated any way that you prefer. This gives you more freedom to personalize the space compared to an apartment or condo.
• Amenities: Townhomes can offer great access to shared amenities and community areas.

Drawbacks Of Townhouses

Some of the cons of buying a townhome might include:

• Decreased privacy: With shared walls come extra noises that are outside of your control. In addition to this, you will have more people sharing a driveway or parking lot and generally in your home’s space. And, unlike a rental, the person you share a wall with is likely to be there for longer, so you’ll need to work any issues out early.
• HOA fees: Townhomes will have HOAs of some sort to deal with shared expenses. This could be as simple as splitting bills monthly or it could involve high fees for maintenance and savings accounts.
• Less space: While not always true, typically, townhomes are compact homes. They do not usually have tons of square footage. This can be fine in many circumstances but might not be ideal if you are hoping for a very large home.
• Accessibility: Because townhomes are typically multistory, there can be poor accessibility. This might not be an issue for everyone, but it is something to consider for resale value and for home buyers with decreased mobility.
• Resale value: Townhomes might have worse resale value than single-family homes. Speak to a real estate agent in your area if resale value is a concern of yours.

The Bottom Line: Townhouses Are A Great Option For Families And First-Time Home Buyers

Townhomes are attached multilevel homes that are individually owned. They can be cheaper and cost less to maintain compared to a single-family home – making them great for single people and first-time home buyers. If you are ready to buy a home, connect with an agent to find the right home for your family.