Townhomes

February 3, 2025

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Deciding on the type of home you would like to live in is a key part of the buying process. If you will be renting or purchasing the property with a partner, be sure to sit down and thoroughly discuss what you both are looking for in a home. In the sections below, we define what a townhome is, what to consider before buying one, and the pros and cons associated with this property type.

What is a Townhome?

Townhomes typically have two or more floors and share at least one wall with adjacent properties. Most townhouses have bedrooms on the upper floors and a living room, dining room, and kitchen on the lower floors. These types of properties are commonly found in urban and suburban areas, but they are growing in popularity in rural areas due to a shift toward smaller homes nationwide. It is common for townhomes to be grouped together in rows within a neighborhood that is managed by a homeowners association (HOA). Residents typically pay a monthly HOA fee to cover the cost of landscaping, maintenance, trash removal, snow removal, and other amenities.

Things to Consider Before Buying a Townhome

There are several factors to consider when you are deciding on the type of home you want to purchase. Think about both short-term and long-term wants and needs, as these may change over time.

• Location – Is the home located near the places you most commonly visit, such as the grocery store, restaurants, shopping centers, etc.?
• Homeowners Association – If the neighborhood has an HOA fee, learn more about what it covers and determine if you can fit the cost in your budget.
• Floor Plan – Does the size and layout suit your needs?
• Amenities – Many HOA communities provide access to a pool, clubhouse, and/or gym. Will you use these amenities?
• Future Plans – Consider whether or not the home fits in with your long-term plans, such as adopting a pet, starting a family, etc.
• Noise Levels – Visit the townhome during both the day and night to get a feel for the noise levels. Keep in mind that you will have at least one wall that is attached to adjacent properties.
• Parking – Will the home have a driveway, garage, a parking lot, street parking, or a combination of two or more options? Also, find out if there are any parking restrictions.

Pros of Living in a Townhome

Townhome living certainly has its benefits, especially for those who prefer multi-level homes. Here are some of the pros of living in a townhome.

• Affordability – When compared to single-family homes that are similar in size, townhomes are almost always more affordable. This applies to both the cost of purchasing the home and the monthly energy costs, as the shared walls help insulate the home.
• Amenities – Many HOA neighborhoods have pools, community centers, and/or gyms that are included with the monthly HOA fee. These amenities often have the positive impact of enhancing community and bringing residents closer together.
• Minimal Maintenance – HOA fees typically cover the cost of landscaping, maintenance, trash removal, snow removal, and more. Townhomes generally require less upkeep than single-family homes even when there is not an HOA, as townhomes typically have smaller yards and driveways. 

Cons of Living in a Townhome

Townhomes are not for everyone, as many of the same qualities that are viewed as benefits to some are seen as drawbacks to others. Here is a breakdown of the cons of living in a townhome.

• Less Privacy – Shared walls and smaller yards allow for less privacy than single-family homes.
• HOA Costs and Restrictions – An HOA fee is an additional expense to account for each month. Additionally, HOAs can be restrictive with their rules, which may limit some of the freedom you have to customize your home.

• Vertical Layout – Townhomes are commonly two to three levels, which makes stairs unavoidable. If you prefer a rancher or one level home, a townhome is probably not for you.

Is a townhome the right fit for you? They are ideal for first-time homebuyers who are not quite ready to commit to a single-family home but want more space than an apartment or condo can offer. They are also beneficial to those who value community and want to get to know their neighbors better.