The Pros and Cons of Townhouse Living
If you’re looking to buy a townhouse, consider the pros and cons of townhouse living to decide if it’s right for you.
Written by Kara Vanderbeek
Reviewed by Melanie Reiff
Built to take advantage of vertical space with multiple stories, townhouses tend to be less expensive than detached, single-family homes of similar square footage. However, townhouse living can come with its disadvantages, including the responsibility of homeowners association (HOA) fees and restrictions.
If you’re looking to buy a home, you may be contemplating the appeal of an urban or suburban townhouse. Despite their attractive price, townhouses can be found in expensive locales and are a great option for home-buyers with a smaller budget.
To help you decide if purchasing a townhouse is the right decision for you,
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The pros of buying a townhouse
Townhouses can be a desirable real estate purchase for a variety of reasons. They can be more affordable, have easier maintenance, and better common area amenities than single-family homes—making them great options for first-time buyers.
Affordability
Affordability is one of the greatest advantages of townhouse living. While buying a townhouse won’t guarantee a cheaper purchase price than a detached home, a townhouse located in the same neighborhood as a detached home will likely be less expensive.
Townhouses are built with shared walls, making them less expensive to construct. As such, you can purchase a townhouse with high-quality finishes in a desirable location for a lower price.
To give you an idea of pricing in the United States, the national average for a 1,500 square-foot, fully built townhome is $166,500 compared to the median price for a single-family home of $269,039. Luxury townhomes can be purchased for $312,500 while less expensive townhomes sell for the price of $77,250.
Easier maintenance
If you hate the upkeep that goes into homeownership, a townhome may be the perfect option for you. Townhomes are generally smaller in size than single-family, detached homes, making them less costly to maintain.
Furthermore, with the purchase of a townhouse, you can say goodbye to the responsibility of snow shoveling, lawn mowing, and pulling weeds. Townhouse owners typically pay into a Homeowners Association (HOA), which takes care of the exterior maintenance of the property for you.
The decreased maintenance of townhouses can make them an excellent choice for first-time homeowners, who may not be familiar with the labor that goes into homeownership.
MORE: Does my home insurance cover earthquake damage
Common area amenities
Much like an apartment or condominium complex, townhome developments are designed with convenience and simplicity in mind. In this way, townhome developments often offer certain amenities that are included with your HOA fee.
Amenities may include:
- Pools
- Clubhouses
- Exercise facilities
- Pest control
- HVAC inspections
- Car washing stations
- Close proximity to work, shopping, transportation, and schools
- Outdoor space
A sense of community
Whether you’re the type to be hosting neighborhood events or you prefer to greet others with a polite nod, there is something to be said about having a community surrounding your home.
Townhouses are, by nature, situated closely together in areas of shared amenities. As such, townhome owners have the opportunity to easily interact and get to know their neighbors.
Freedom
While townhouse owners must follow rules and restrictions set by the HOA, townhouse developments are still granted a level of freedom that apartment and condominium living can’t offer. For example, townhouse owners have much greater freedom concerning the interior and exterior design of their space than do those living in apartment and condo complexes. Generally, owners can renovate their space as they see fit as long as they go through proper approval channels.
Key Takeaway: Townhouse living boasts many advantages and can be a great option for home-buyers looking for convenient amenities and a sense of community.
MORE: How to settle into a new house
The cons of buying a townhouse
With the many advantages of townhouse living, you may be running to a townhome’s next open house. Nevertheless, it’s important to first consider the potential downsides to townhouse living so you can make an adequately informed real estate decision.
Less space and privacy
Due to the nature of townhome construction, townhome owners share a physical wall with their neighbors. Consequently, townhome owners are afforded less privacy than detached homeowners, which may be an issue if you’re living next to a rambunctious crowd.
In addition to less interior privacy, the smaller yard area that accompanies townhouses generally lacks space for landscaping between neighbors, which can be less than ideal for homeowners who are hoping for a quiet outdoor space.
Expensive HOA fees
Unfortunately, the convenient amenities that come with townhouse living do not come without a cost. Depending on what’s provided by the HOA, fees can range from $100 to $700, with $200 being the average.
It’s important to note that HOA fees can change or increase over time, which may make your home less affordable down the road. If you’re considering a townhouse for the potential savings, ensure you’ve factored HOA fees into the equation.
Keep in mind that while HOA fees cover the exterior maintenance and amenities of the property, they will not cover maintenance for the interior of your home.
MORE: How to make a counteroffer after a home inspection
HOA restrictions
HOA restrictions aim to legally preserve the value of its properties, and they do so with restrictions on landscaping, paint colors, exterior storage, noise levels, and exterior decorations.
If you hope to have full freedom with the design of your home or exterior decor, a townhouse may not be for you.
Resale Value
While townhomes can be a great option for buyers with lower budgets, townhome owners may not see an appreciation in their home’s value over time. Oftentimes, when townhome owners decide to sell, they have to sell their home at the same discount they purchased it at.
In this way, townhomes are not always a sound financial investment, particularly for families who wish to transition from their townhome into larger, detached homes after re-sale.
Key Takeaway: Townhouse living may not be for you if you’re looking for a spacious, quiet home, or hope to resell your property in the future for a greater profit.
Finding home insurance for your townhouse
Having homeowners insurance for your townhouse can financially protect you from an unexpected accident or disaster on your property, and may be required by your lender to secure a mortgage.
However, it can be overwhelming trying to find the right policy, particularly when dealing with the process of purchasing a new home. Many homeowners are tempted to buy the first policy they see simply to get it over with.
Fortunately, insurance app
Jerry
makes insurance shopping easier than it’s ever been. All you have to do is download the app and enter your information and Jerry will find you the best quotes from top insurance companies.“Jerrywas wonderful! I used it for my auto and renters policies. I trusted it so much that I signed up my homeowners insurance under Jerry as well. All of the agents are amazingly nice and knowledgeable.” —Mary
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FAQs
What is a townhouse?
A townhouse is a multi-story home that shares one or two walls with an adjacent property. Townhouses are generally less expensive to purchase than detached homes and may be a part of a homeowner’s association.
What is the downside of owning a townhouse?
While there are many advantages to townhouse living, the lack of space and privacy, along with HOA fees and restrictions, may be deterrents for some homebuyers.
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