Behind detached houses, townhouses were the second most popular home choice among U.S. buyers in 2024, according to the National Association of Realtors.

But is buying a townhouse right for you? This guide breaks down everything you need to know before deciding if townhouse living fits your lifestyle, budget, and future plans.

Quick Townhouse Facts

• Townhouses cost about $70,000–$90,000 less than detached single-family homes on average
• Unlike condo owners, townhouse owners typically own both the inside and the land
• Ideal for those wanting a low-maintenance lifestyle
• Townhome communities often offer amenities like pools and shared yard space
• Townhomes are usually a part of an HOA, which means extra fees and rules to help maintain amenities and community quality

What Exactly Is a Townhouse?

A townhouse is a multi-level home that shares at least one wall with another similar home. Most townhouses are narrow, tall structures with two to three floors, and you’ll typically find them in urban or suburban areas.

The biggest difference between townhouses and condos? While condo owners only own their interior space, townhouse owners actually own the land their home sits on, too. This gives townhome owners more control over both the inside and outside of their property.

Townhouse communities are designed to maximize living space while providing shared amenities. They're often arranged in rows with each unit connected to the next, creating a distinctive look compared to apartment buildings or detached homes.

To be classified as a single-family townhouse (which matters for mortgage purposes), it needs to be separated from neighboring units by a ground-to-roof wall and have its own heating/cooling system and utilities.

Why Townhouses Could Be Perfect for You

They're More Affordable

The numbers don't lie. According to recent Redfin data, the median sale price of a U.S. townhouse was in the upper $300s, while detached single-family homes averaged in the mid-$400s. That’s a difference of $70,000–$90,000.

In expensive housing markets, this price gap can be even bigger—$100,000 or more. For home buyers with budget constraints, this affordability factor is a major selling point.

You Get More Ownership

Unlike condos, townhouse owners typically own both the inside of their home and the land it sits on. Want to plant a garden or build a small patio in your yard space? With a townhouse, you can often make these changes without asking permission (though HOA rules might still apply).

This gives townhome owners more freedom than condo owners typically enjoy.

A Low-Maintenance Lifestyle

Tired of spending weekends mowing lawns and cleaning gutters? Townhouses can offer a middle ground for those seeking a low-maintenance lifestyle.

The smaller lot size means less yard work, and many communities handle exterior maintenance through homeowner association fees.

You get the benefits of homeownership without all the upkeep headaches.

Enjoy Shared Amenities

Many townhouse communities offer amenities you might not afford on your own: swimming pools, fitness centers, walking trails, and community centers.

These shared resources can add tremendous value to your lifestyle without the cost of maintaining them yourself. For townhome owners, essential amenities often become favorite gathering spots.

Watch Out For These Townhouse Challenges

HOA Fees and Rules Can Add Up

Most townhomes come with homeowners’ association fees—sometimes significant ones. These monthly charges cover exterior maintenance and common areas, but they can increase over time.

Some townhouse HOAs charge $200–$500 per month, directly impacting your housing budget. In fact, HOA fees are one of the most important factors to consider when buying a townhouse.

The rules can also be restrictive. Want to paint your front door bright red or rent your place out on weekends? Check the homeowner association rules first. Many have strict guidelines about what townhome owners can and can't do with their property.

Shared Walls Mean Less Privacy

Let's be honest. Sharing walls with neighbors means you might hear them—and they might hear you. Modern townhouses often have good soundproofing, but it's not the same as having space between detached homes.

If you're sensitive to noise or value complete privacy, this could be a dealbreaker for you.

Living Space Can Feel Tight

Townhouses are typically narrower than detached single-family homes, with living areas spread across multiple floors. This can make furniture arrangement in smaller spaces tricky and might mean lots of stair climbing throughout the day.

The square footage might be similar to some detached homes, but the layout can feel far more constrained. If you have mobility issues or hate stairs, a townhouse might not be ideal.

Find the Right Townhouse in 5 Simple Steps

1. Work With an Agent Who Knows Townhouses

Find a real estate agent who specializes in townhouse communities in your target area. They'll know which townhome communities have the best reputations, reasonable HOA fees, and the fewest complaints.

Working with a good agent means they will also help you understand the unique considerations of townhouse ownership that you might overlook on your own. They can tell you which communities allow rentals, have the healthiest reserve funds, or might have special assessments coming up.

For first-time home buyers in particular, this expertise is invaluable.

2. Get Pre-Approved Before Shopping

Nothing's worse than falling in love with a townhouse only to discover you can't afford it. Remember, your mortgage payment is just part of the picture—you'll also have property taxes, insurance, and those HOA fees we talked about.

Get pre-approved for a mortgage so you know exactly what you can afford upfront. This helps determine how much down payment you'll need and makes your offer stronger when you find the perfect place.

3. Decode the HOA Rules and Fees

Just like if you were buying a condo, take a close look at the homeowner association documents. Don't just glance at the monthly fee—dig deeper to understand:

• What exactly do the HOA fees cover? (Especially exterior maintenance)
• How often have fees increased in the past five years? How much did they increase?
• Is there a healthy reserve fund for major repairs? (At least 70% funded or higher)
• Any upcoming special assessments planned, or have there been any recently?
• What are the rules about rentals, pets, renovations, and parking?
• What's the process for handling complaints or violations?

You can (and should) make your purchase contract contingent on reviewing and approving these homeowner association documents. This gives you an escape route if you discover something concerning about the townhouse community.

4. Compare Mortgage Rates to Save Thousands

Even a 0.5% difference in your mortgage rate could save or cost you tens of thousands over the life of your loan.

For example, on a $300,000 mortgage, a rate of 6.5% versus 7% could save you about $100 per month—that's $36,000 over 30 years!

Shop around with at least three to four different lenders. Each will offer different rates and terms, and the savings can be substantial. Remember: lenders compete for your business, so don't automatically take the first offer you get.

Worried about credit pings? Don't be. When you shop around for a mortgage, there's a 45-day window where all those hard credit inquiries only count as one inquiry.

5. Get a Thorough Home Inspection

A proper home inspection is just as important for townhouses as for single-family homes. Make sure your inspector checks both the inside and outside of the unit, even if the HOA is responsible for exterior maintenance.

Pay special attention to shared walls, roof condition, HVAC systems, and any signs of water damage. If problems are found on the exterior, bring them to the attention of the HOA before closing.

Smart Questions to Ask Before Buying a Townhouse

About the Community

• What's the owner-to-renter ratio in the community?
• Does the townhome community have an HOA?
• Are there any ongoing disputes between neighbors or with the HOA?
• What's the noise level like at different times of day?
• How is guest parking handled?

About Property Restrictions

• What exterior changes can I make without approval?
• Are there any restrictions on renting out my unit?
• Are there pet restrictions (types, sizes, number)?
• Can I run a home-based business from my townhouse?
• Are there quiet hours or other lifestyle restrictions?

About Your Specific Unit

• Has this unit had any major repairs or problems?
• How old are the major systems (roof, HVAC, water heater)?
• Are there any known issues with neighboring units?
• Where exactly are the property lines for my outdoor space?
• Has the townhouse had any water or pest issues?

Take a few minutes to add your own questions to this list based on what matters most to you. Having these answers before you buy a townhouse can save you from unpleasant surprises.

Is a Townhouse the Right Investment?

Appreciation Potential

Let's be clear: townhouses typically don't appreciate as quickly as detached single-family homes. But they usually outperform condos in the same area. The land ownership component gives townhouse owners an edge over condo owners when it comes to long-term value.

In high-demand urban or suburban areas, townhouses can sometimes appreciate quite well because they offer more living space than condos without the premium price of detached homes.

Location Matters More Than Ever

With townhouses, location is everything.

A townhouse in a desirable area with easy access to essential amenities will likely hold its value better than a larger single-family home in a less desirable location.

Townhouses located in urban or suburban areas near city centers, transit, and entertainment districts tend to maintain strong appeal.

Think About Future Buyers

When evaluating a townhouse as an investment, think about who might want to buy it from you someday.

End units (with only one shared wall) typically command higher prices and sell faster. Properties with garages, updated interiors, and private yard space also tend to retain value better.

These features consistently command premium prices when it's time to sell. The townhome community's reputation and financial health will also significantly impact your property's future value.

Financing Your Townhouse Purchase

Getting a mortgage for a townhouse works much like financing any other home. Lenders will review your credit score, income, debt-to-income ratio, and down payment, then determine how much they'll lend you.

One key difference: lenders often factor HOA fees into your debt-to-income calculations. A high monthly HOA fee can reduce the mortgage amount you qualify for.

The down payment requirements for buying a townhouse are typically similar to those for other properties. Most lenders require a down payment of 3–20% of the purchase price, depending on the loan program and your financial situation.

The good news? Townhouses often qualify for the same loan programs as single-family homes, including:

• Conventional loans (as low as 3% down)
• FHA loans (3.5% down with lower credit score requirements)
• VA loans (0% down for eligible veterans)
• First-time homebuyer programs (which vary by city and state)

Before You Decide to Live in a Townhouse

Townhouses can offer that middle ground many home buyers are looking for: more affordable than detached single-family homes but with more privacy and living space than condos. They're perfect for anyone who wants a lower-maintenance lifestyle without sacrificing the benefits of homeownership.

The townhome community you choose will significantly impact your living experience. Each community has its own character and approach to exterior maintenance and amenities.

But townhouses aren't for everyone. If you value complete privacy, need lots of yard space, or hate having any homeowner association rules about what you can do with your property, a townhouse might feel too restrictive.

The best way to decide? Visit several communities. Talk to some current townhome owners if possible. Check out the swimming pools and other amenities. And be honest with yourself about your lifestyle needs, both now and in the next five to 10 years.