Is a Townhouse the Right Fit for You? Pros, Cons, and What to Consider Before Buying

Deciding where to live is one of the most significant decisions we make in our lifetime, and choosing the right type of housing is an essential part of this process. With so many options available, such as apartments, detached homes, and townhouses, it can be challenging to decide which type of housing is the right fit for you. 

For example, if you choose to rent in Sacramento, for instance, purchasing a townhouse may be a great option since they are relatively affordable and provide a low-maintenance lifestyle. In Boston, townhouses offer proximity to the city’s many attractions and a sense of community, while in Portland, townhouses are often designed with eco-friendly features and provide easy access to outdoor recreation.

In this article, we will explore the pros and cons of purchasing a townhouse compared to other types of housing. We’ll take a closer look at what to consider before making your decision, and provide some helpful tips for those contemplating purchasing a townhouse. Whether you’re a first-time homebuyer or looking to downsize, this guide will provide valuable insights to help you make an informed decision.

What is a townhouse?

A townhouse is a type of house dwelling that is characterized by its narrow and tall structure. It’s a house that is attached to one or more similar houses, forming a row or terrace of houses. Townhouses can be found in urban or suburban areas and are often located in neighborhoods that are close to commercial and entertainment districts.

Townhouses are a popular housing option for many who want the privacy and independence of a single-family home, but also want the benefits of living in a community. They are often less expensive than single-family homes and offer a lower maintenance lifestyle than owning a standalone house. Additionally, townhouses are typically designed to maximize space, which makes them an excellent choice for those who want a larger living area than an apartment but do not want the upkeep of a single-family home.

Townhouses are usually multi-level, with two or three stories, and they often have a small yard or patio. They are typically designed with a living room, dining room, and kitchen on the ground floor, with bedrooms and bathrooms on the upper floors. Some townhouses have a basement or garage, which provides additional living space or storage.

Many townhouses are also part of a homeowners’ association (HOA), which means that residents pay a fee to the association to cover the cost of maintenance, landscaping, and other shared amenities. This fee may also cover the cost of trash removal, snow removal, and other services. Additionally, townhouses are often located in desirable locations that are close to shopping, dining, and entertainment.

Pros of townhouses

1. Affordability: Townhouses are often more affordable than single-family homes, making it a cost-effective option for those looking for their first home.
2. Space: Townhouses generally have more living space than apartments, and they also have multiple floors, which allows for more privacy.
3. Community: Townhouses often have a strong sense of community, with shared outdoor spaces, amenities, and social events.
4. Low maintenance: Since townhouses are often part of a homeowner’s association (HOA), maintenance of the exterior and common areas is taken care of by the HOA.
5. Security: Many townhouse communities offer security features, such as gated entrances and security cameras, which can provide added safety to residents.

Deciding between renting or buying your next home? Explore your options.

Compare the costs of renting vs buying and find a lender to secure your mortgage.

Deciding between renting or buying your next home?

Compare the costs of renting vs buying and find a lender to secure your mortgage.

Cons of townhouses

1. Lack of privacy: Townhouses often share walls with neighboring units, which can lead to noise and lack of privacy.
2. HOA fees: Homeowner association fees can be an added expense that must be factored into the budget, and may increase over time.
3. Limited customization: Since townhouses are often part of a larger community, homeowners may not have as much freedom to customize the exterior or interior of their unit.
4. Limited outdoor space: While townhouses may have shared outdoor spaces, they often have limited private outdoor space.
5. Restrictions: Some homeowner associations may have restrictions on certain activities, such as parking, pets, and the use of common areas, which can be limiting for residents.

What to consider before buying a townhouse

1. Location: The location of the townhouse is crucial, and you need to consider factors such as proximity to schools, shopping centers, hospitals, and public transport.
2. Homeowners Association (HOA): Find out the fees and regulations of the HOA, and determine if they align with your budget and lifestyle preferences.
3. Floor Plan: Ensure that the layout and size of the townhouse are suitable for your needs. If you prefer an open floor plan, confirm if the townhouse meets your requirements.
4. Amenities: Check if the townhouse has the amenities you’re looking for, such as a swimming pool, gym, or clubhouse.
5. Renovation and Maintenance: Consider any potential repairs and renovations needed and ask if there are any restrictions on modifications.
6. Affordability: Consider the cost of the townhouse and factor in expenses such as closing costs, property taxes, and insurance to help determine what you can afford.
7. Home Inspection: Before purchasing, make sure you conduct a home inspection to uncover any potential issues with the property, such as structural problems, leaks, or electrical issues.
8. Future Plans: Consider your long-term plans before purchasing a townhouse. If you plan to start a family, adopt a pet, or move, ensure the townhouse meets your future requirements.
9. Security: Confirm the security measures put in place in the townhouse such as cameras, fencing, and security personnel.
10. Financing Options: Determine the financing options available through your lender and select one that aligns with your financial goals.

Helpful tips to know before buying a townhouse

1. Know your budget: Before you start looking for a townhouse, know your budget and learn how much you can afford. This will help you narrow down your options and avoid falling in love with a townhouse that may be outside your budget.
2. Location: Location is one of the most important factors to consider when purchasing a townhouse. Look for a location that is close to public transportation, schools, shopping centers, and other essential amenities.
3. HOA fees: Many townhouses are part of a homeowners association (HOA). Make sure to understand the HOA fees and what they cover. Some HOAs cover lawn care and exterior maintenance, while others only cover basic services.
4. Reserve funds: Ask the HOA if they have a reserve fund. This fund is used for unexpected repairs and maintenance. It’s important to ensure that the HOA has enough money in the reserve fund to cover potential repairs.
5. Noise levels: Townhouses can be noisy, especially if they are located near busy streets or have thin walls. Make sure to visit the townhouse during different times of the day to get a feel for the noise levels.
6. Homeowners insurance: Make sure to get homeowners insurance to protect your investment. Shop around for the best rates and coverage.
7. Parking: Check if the townhouse has a garage, parking spot, or if there will be tandem parking. If not, find out if street parking is allowed and if there are any restrictions.
8. Future plans: Find out if there are any future development plans for the area. This could affect property values and your quality of life.
9. Resale value: Keep resale value in mind when purchasing a townhouse. Look for a townhouse in a desirable location and with good amenities to increase your chances of selling it for a profit in the future.
10. Home offices: According to Red Brick Property Management, “Properties equipped with home offices, flexible workspaces, and high-speed internet will attract these tenants.” This makes townhouses an ideal option for remote workers, as they often provide the extra space needed for a home office or dedicated work area. With the continued prevalence of remote and hybrid work, townhouses may offer a better living solution that accommodates both professional and personal needs.

Should you buy a townhouse: bottom line

Townhouses are a type of residential dwelling that is ideal for many who want the privacy and independence of a single-family home, with the benefits of living in a community. “Renting a townhome in downtown Chicago offers more space and separation compared to a traditional apartment, providing a quieter, more private living experience while still being in the heart of the city,” says Sophie Morrison of Downtown Apartment Collective, an apartment rental agency in Chicago, IL. 

“Many high-rise buildings, such as Spoke in River West and Porte in West Loop, have attached townhomes, allowing residents to enjoy the perks of townhome living without sacrificing access to luxury amenities like pools, gyms, and lounges. Townhomes often feature multiple floors, creating a natural division between living and sleeping spaces, which can be ideal for households where multiple people work from home or those who simply prefer a more home-like layout. Unlike standard apartments, townhomes usually have direct entrances, eliminating the need to navigate busy hallways and elevators, which adds convenience and a sense of exclusivity.”

Townhomes are typically less expensive than single-family homes and offer a lower maintenance lifestyle than owning a standalone house. Townhouses are often located in desirable locations and are a popular housing option for many people. If this sounds like what you’re looking for, then a townhouse may be right for you.