Buying Townhouse Versus Single-Family Homes For Home Buyers

Townhomes Are Becoming More Popular During Today's Booming Housing Market

This Article Is About Buying Townhouse Versus Single-Family Homes For Home Buyers 

Home prices have been skyrocketing in the past several years. Just in the past 12 months, home prices have jumped 14% percent. 14% increase in home prices in just one year? Will this trend continue? Will there be another housing bubble? Many homebuyers are being priced out of the housing market. However, there are townhomes and condominiums that are still priced affordably. Townhomes and condos are becoming increasingly popular in today’s booming housing market. In this article, we will discuss the benefits of buying a townhouse versus a single-family home.

Comparing The Benefits Of Buying A Townhouse Versus A Single-Family Home

Buying Townhouse Versus Single-Family Homes is one of the main decisions homebuyers face.

  • There are pros and cons in Buying Townhouse Versus Single-Family Homes
  • Some questions are how long are you planning on living at your new home
  • Is privacy a concern?
  • How much are the monthly payment differences when Buying Townhouse Versus Single-Family Homes
  • What life changes will your new home purchase have to accommodate in the near future?

Homebuyers need to compare the pros and cons when deciding on Buying Townhouse Versus Single-Family Homes.

Features When Buying Townhouse Versus Single-Family Homes

Features When Buying Townhouse Versus Single-Family Homes

There are structural differences when Buying Townhouse Versus Single-Family Homes.

  • Townhouses are attached to one another
  • It shares common walls from one unit to another
  • Single-Family Homes are detached properties
  • Single-Family Homes do not have shared walls and sit on its own lot
  • Owners of single-family homes have front and back yard space
  • Townhomes are limited to outdoor space
  • Townhouses are normally built in urban areas and are smaller than homes

Folks who do not want to be very close to their neighbors would benefit from single-family homes versus townhomes.

Illinois Realtor Karry Razik, a very popular experienced veteran with Remax First Class in Orland Park, Illinois, issued the following statement:

When referring to townhomes, we mean a small house that’s attached to other small houses in a multi-family complex. Townhomes are the middle ground between a house and a condo.

Here is the pros:

Affordability for amount of space

Plenty of space

Yard work and snow removal is often handled by HOA

Attached garage

Here are the cons of owning a townhouse versus detached homes:

Some HOA fees

Less privacy with shared walls

Costs of home ownership, including maintenance and repairs

Communities In Townhouses Versus Detached Homes

Townhomes are built within a common development community.

  • There is a homeowners association
  • Townhome owners get charged homeowners association dues
  • HOA can vary anywhere between $100 to $500 or more depending on the townhome community
  • The HOA sets rules and enforces the by-laws of the association
  • The HOA contracts with third-party vendors such as maintenance, landscaping, plowing, scavenger services, and other third-party services
  • The cost of these services is included in homeowners association dues
  • Townhouse owners cannot pick and choose the color of their exterior
  • The homeowners association has strict rules on what color the walls can be painted
  • Many HOA’s do not allow owners to rent their townhomes
  • Need to check with the homeowners association whether or not owners can keep their townhouse as rentals if they decide to purchase another home
  • Other restrictions that be placed by HOA is the type of pets they can have
  • HOA can dictate that pet owners cannot have a dog heavier than 35 pounds
  • Trucks and RV’s are often not allowed in townhome communities

One of the greatest benefits of living in a townhome community is that owners do not have to worry about maintenance and landscaping. However, it does come with a price and is charged with the HOA dues.

Cost Differences Buying Townhouse Versus Single-Family Homes

Cost Differences Buying Townhouse Versus Single-Family Homes

Many first-time home buyers are more inclined to Buying Townhouse Versus Single-Family Homes because they believe townhomes are cheaper. This is not necessarily the case. Detached homes do not have homeowners association dues. Townhouses do. Average HOA Fees on townhouses are $400. A $400 monthly payment is equivalent to $80,000 in buying power. So Whether a home buyer purchases a $100,000 townhome with a $400 HOA Dues or $180,000 detached home, their monthly mortgage payment will be the same. When comparing housing costs on townhomes versus detached homes, make sure to compare HOA dues versus no HOA dues. There are many factors to consider when deciding to purchase a townhouse or detached home.  Talk to family, friends, and especially your realtor.

14 Comments
  1. Stefan Bradley says

    It’s good to know that single-family homes do not have shared walls and sit on their own lot. My wife and I just got married and want to find a house that offers seclusion and privacy. I think that a single-family home might be the perfect kind of house for us since they are isolated and quiet. I want to thank Alex Carlucci of Gustan Cho Associates for his informative video and Mike Gracz the Texas branch manager at Gustan Cho Associates for taking the time to answer all of my questions and talking to my realtor. Gustan Cho Associates and the team of professionals there are five star professionals.

  2. Rosie Beckett says

    My husband and I are thinking about buying our first home soon and we don’t know too much about our options, so I appreciate the tips in this article. It makes a lot of sense that single-family homes allow you to have your own front and back yard. Plus, we will have space and won’t feel too close to our neighbors which is a huge benefit and I will make sure to share this information with my husband. I spoke with Alex Carlucci and he gave me some great advice. I also have been watching Mr. Alex Carlucci’s mortgage videos on You Tube which has been very informational. Thank you for the informative materials that is posted at Gustan Cho Associates

  3. Ron Booker says

    I like that you said that buying a single-family home gives you more privacy than a town-home. My sister is thinking of buying a small home and she was wondering which would be the best option. I’m going to let her know about the benefits of buying a single-family home. https://www.imaginationrealty.net

  4. Kate Hansen says

    I’m glad that you mentioned that they do not share walls with other homes. My family and I have been living in a townhome for a couple of years now and have always been bothered by the fact that we can hear a lot of things that our neighbors are doing. We’ll definitely have to look into purchasing a single-family home! Like to thank Alex Carlucci, Massimo Ressa, Michael Gracz for the informative blogs and videos on YouTube and last but not least, Gustan Cho Associates

  5. Randy Chorvack says

    I like how you said that single-family homes have a lot of yard space. I have a very rowdy daughter who likes to be outside a lot, so that would definitely be a bonus. Then I wouldn’t have to walk to the park all the time. Massimo Ressa, Alex Carlucci, Mike Gracz, Martyna Szettel, Piotr Bieda, Gustan Cho, Dawn Sabathne, Torri Davila, Kim Lambert all have been great.

  6. Mindy Jollie says

    I like what you said about the types of communities available in a townhouse setting. My friend wants to live by herself in her own home but she doesn’t want to have a single-family home yet. She’ll have to look into finding a townhouse community that works with her style. I watched Alex Carlucci’s YouTube video at Gustan Cho Associates and learned a lot of information.

    1. Gustan Cho, NMLS 873293 says

      Alex Carlucci is a senior loan officer at Gustan Cho Associates and can be reached at [email protected]. His number is 630-915-7550. Alex Carlucci is also a contributing associate editor and host at Gustan Cho Associates Mortgage News

  7. Ellie Davis says

    It’s interesting to know that single-family homes will provide you with front and back yard space. My husband and I are thinking about buying our first home, and we are looking for advice. I will let him know about the benefits of single-family homes to help his decision. By the way, I have been watching Alex Carlucci YouTube videos. I am a fan of Alex Carlucci and Gustan Cho Associates. Thanks for the valuable information Gustan Cho Associates Mortgage News puts out daily. Very informative. Articles by associate contributing contributors Massimo Ressa, Dale Elenteny, Alex Carlucci, Martyna Szettel, Michael Gracz, Gustan Cho, Piotr Bieda, Samantha Schlarb, Torri Davila, and Mortgage Processor Dawn Sabathne are all very informative.

  8. David Johnson says

    I didn’t realize that you benefit from a single-family home if you don’t want to be very close to neighbors. I can’t handle lots of loud noises. For this reason, I’ll have to look into getting a single-family home. Alex Carlucci and Mike Gracz of Gustan Cho Associates have helped me out tremendouly.

  9. Ron Booker says

    I like that you said that is better to buy a single-family home better than a townhome because townhomes tend to have fees. My mom and dad are looking to buy a new place for them too. I’m going to share with them this information so that they can have a better opinion of both. Piotr Bieda and Martyna Szettel of Gustan Cho Associates really helped me with advice and sending me articles to read on Gustan Cho Associates. Maria Windham of Gustan Cho Associates was my assigned loan officer. Like to thank Mortgage Underwriter Kathleen Seffek and Operations Director Karen Cordes of Gustan Cho Associates for the help.

  10. Jesse Ford says

    I like how you mentioned that single family homes aren’t attached to one another like condos and apartments are. My wife and I are thinking about moving out of the heavily populated city and into a home out in the country. It seems like a house that doesn’t have shared walls would be a good investment for our privacy. I really enjoyed Alex Carlucc of Gustan Cho Associates video

  11. Sharon Balazarri says

    We have been dealing with a lender that pre-approved us on our home build that is to close on July 1st. We were pre-approved on a conventional loan with 5% down. My husband had a collection account from years back that needed to be paid off in the last couple of weeks, which has been. His middle score is 658. The lender is now telling us that he can not get an approval from the automated underwriting system. The lender is working the past couple of days to do rapid score increasing in hopes that our score will increase to put the score in the above 660 category. Would you be able to overcome the obstacle of the automated underwriting tool if he is still not able to get the approval? We were told we would only need 5% down, and that is all we can get. Please let me know if you are confident you can get an approval and funding for our July 1st close. We are supposed to hear from our lender today regarding the results of the rapid increase and if the approval went through the automated underwriting. I want to have a secure Plan B if not. Thank you!

  12. Braden Bills says

    I want to make sure that I get the right home for me. It makes sense that I would want to consider getting a single-family home. It would be nice to not have to worry about sharing any walls with anyone. Do you deal with lenders licensed in Hawaii? First time buyer looking to purchase a condo or single family residence under $250,000.
    I have been a fan of Alex Carlucci of Gustan Cho Associates. I have been following the blog on Gustan Cho Associates for the past three years.

    1. Gustan Cho, NMLS 873293 says

      Please reach out to us with your contact information at [email protected].

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