What is a townhouse?

Quick insights

• For first-time homebuyers seeking more control and ownership over their property, you may want to consider a townhouse. If you value privacy and want the freedom to make renovations to your home, a townhouse might be a suitable housing option.
• Townhouses provide a taste of single-family homeownership with the convenience of shared amenities and potentially less maintenance compared to a detached house.
• Working with a skilled real estate agent and mortgage lender can make the homebuying process smoother because you are leveraging their expertise. This can save you time, money and stress.

Are you looking for the perfect blend of privacy, independence and community? In your search for a new home, you’ve most likely encountered the term “townhouse” and wondered, exactly what is a townhouse? A townhouse combines some of the best features of a single-family home with the convenience of condo living. Townhouses, or sometimes called townhomes, can offer cozy, compact living space without sacrificing the benefits of homeownership. Owning a townhouse offers several advantages, including affordability compared to detached homes and potentially lower maintenance costs. Let’s dive deeper into the world of townhouses to help you determine if this living style is a great fit.

Features of a townhouse

Imagine a multi-story home with its own private entrance, comfy patio and the opportunity to connect with your neighbors. With amenities often included and maintenance responsibilities shared, townhouse living can offer a less stressful lifestyle. This is great for first-time homebuyers seeking a balance between independence and togetherness. Here are some of the appealing features that make townhouses an excellent housing option:

• Privacy with a touch of community: You can enjoy the peace of having your own space with a private entrance and designated living area. Townhouses usually foster a sense of connection and community with shared amenities such as pools, courtyards and fitness centers.
• Organized Space: Most townhouses generally have multiple floors, often including a garage on the ground level. This can be an ideal option for families or individuals looking for dedicated areas for work, hobbies or relaxation.
• Variety of locations: Townhouse developments can be found in vibrant city centers and suburban areas. Townhouses located in the city may offer walkable access to shops, restaurants and entertainment. Suburban townhouses often provide a quieter environment with access to parks, more square footage and family-friendly amenities.

Townhouses have a rich history, dating back to medieval Europe when they housed royalty and wealthy families. Today, townhouses are popular in bustling city areas and suburban neighborhoods. When considering buying a townhouse, explore different neighborhoods, look at various townhouse plans to get an idea of the layout and consult with a real estate agent and home lending advisor.

What makes a townhouse different?

Townhouses are becoming more common in the multi-unit housing market. A townhouse may be the optimal choice if you want to spend less than you would on a single-family home but keep your privacy. However, it may not work for someone looking for lots of outdoor space or open living area inside, as townhouse properties can be on the narrow side. Consider different factors that matter to you such as preferred location, desired space, budget, maintenance and comfort level.

Townhouse vs. condo

Choosing between a townhouse and condo can be a close call because both offer homeownership with unique advantages. Understanding the key difference between a townhouse and condo can help you find an ideal living space. You will own the interior, exterior and potentially some land. With a condo, you only own the interior space of your unit, which might have less square footage overall, but there is typically less exterior maintenance and building upkeep.

Townhouse vs. rowhouse

While the terms “townhouse” and “rowhouse” are used interchangeably, there are a few subtle differences between these types of attached dwellings. Townhouses can come in many configurations, from attached units in a group to standalone structures within a development. Rowhouses are typically built in a long row, sharing walls with neighboring units on both sides and have a consistent architectural style.

Are you seeking architectural variety and some privacy between units? A townhouse might be a great option. Are you drawn to the historic charm and tight-knit community feel of a rowhouse district? Then a rowhouse could be a good match.

Townhouse vs. apartment

Unlike apartments where the units are stacked on top of each other, a townhouse is typically built side-by-side with multiple floors. You can think of townhouses as attached single-family homes.

Townhouse vs. co-op

Both townhouses and co-ops offer a pathway to buying your first home, but they differ in terms of ownership and overall living experience. With a townhouse, you own the actual property, including the land it sits on, the interior structure and exterior walls. With a co-op, you purchase shares in a corporation that owns the entire building. You will have a proprietary lease granting you exclusive rights to occupy a specific unit, but you won’t own the physical property itself.

An advantage to living in a co-op is the ability to connect with your neighbors due to shared building amenities. Think about your priorities: Do you crave more control and traditional homeownership? Or are you drawn to a lower upfront cost and a potentially more social living environment? Assess the pros and cons of both housing arrangements.

Pros and cons of buying a townhouse

Townhouses offer a unique take on homeownership, blending certain aspects of single-family homes and condos. Before you make the decision to buy a townhouse, consider the advantages and disadvantages.

Pros of buying a townhouse

• Affordability: Townhouses are usually more affordable than detached single-family homes. This can be a great option for first-time homebuyers or individuals on a tight budget.
• Lower maintenance: Compared to single-family homes, townhouses typically require less exterior maintenance. HOAs (Homeowner’s Associations) often handle exterior maintenance such as lawn care, roof repair and snow removal.
• Additional space and privacy: Townhouses often have more square footage than apartments, Townhouses often have two- and three-story layout plans, providing dedicated areas for living, working and relaxation. Some townhomes even have a private rooftop for residents to access. You will likely have your own private entrance and designated living space, offering a sense of privacy and independence.

Cons of buying a townhouse

• Shared walls: Sharing walls with your neighbors might mean more noise transmission.
• HOA fees: HOA fees are a recurring expense that can add up. These fees usually cover maintenance of common areas and amenities.
• Less privacy than detached homes: While you will have your own entrance and private backyard or patio, you won’t have the complete privacy of a detached home and no private backyard.

Different types of mortgage options to buy your townhouse

When buying a townhouse, you typically have several mortgage options available to you. The most common types of mortgage loans include conventional fixed-rate mortgages, conventional adjustable-rate mortgages (ARM), government-backed loans and jumbo loans. Government-backed loans are insured by government agencies such as Federal Housing Administration (FHA) loans and Veterans Affairs (VA) loans. Before selecting a mortgage option for your townhouse purchase, it is crucial to consider your financial situation, long-term goals and consult with a home lending advisor to explore the best options available to you.

In summary

Whether you’re a first-time homebuyer or looking to downsize from your single-family home, townhouses can be an attractive housing option. The decision depends on your lifestyle preferences, priorities and needs. Consider visiting several townhouses in different neighborhoods to get a feel for the layout and community dynamics. As you explore townhouse plans, keep in mind the location, transportation options and amenities. An experienced real estate agent and mortgage lender can guide you through the townhouse buying process, from attending open houses and getting pre-approved to closing the deal and getting your new set of keys.