Townhouse Versus Single-Family Homes For Home Buyers


This BLOG On Townhouse Versus Single-Family Homes For Home Buyers Was PUBLISHED On May 5th, 2019

Many first time home buyers gravitate towards buying a townhouse versus single-family homes.

  • The main reason why first time home buyers prefer to shop for condos and townhouse over single-family homes is that they think they are cheaper
  • This may be true price-wise but not necessarily true when it comes on monthly housing payments
  • Homeowners association fees are tacked on condos and townhouse versus single-family homes
  • Unless a single-family home is located in a gated community, there are no HOA dues
  • However, most condos and townhome communities have homeowners association dues

In this blog, we will discuss the pros and cons of buying townhouse versus single-family homes. We will discuss the pros and cons of buying townhouse over single-family homes.

Benefits Of Townhouse Over Single-Family Homes

Townhomes have been around for decades. However, townhomes are becoming increasingly popular among first-time buyers and millennial home buyers.

  • Many home builders are building townhomes
  • This holds true in areas where land is very scarce
  • Townhomes are very popular for folks who are downsizing, home buyers who often travel, first-time home buyers, and real estate investors
  • Modern townhomes are single-family units with at least two floors, many have basements and attached garages, and has a shared wall with another townhouse

Townhouses are very popular in land-scarce urban and/or suburban areas where land is very hard to come by and expensive.

Benefits Of Condos Versus Townhouses

Townhouses are not condominiums.

  • There are many similar aspects to townhouses and condos
  • They both are part of a residential community
  • Townhouse and condo communities often have common areas such as swimming pools, clubhouses, tennis courts, gyms, walking/biking paths, and other amenities
  • Both condo and townhome communities have a homeowners association and assess homeowners association fees (HOA)
  • HOA’s is similar to a tax and is required by townhome and condo unit owners
  • The main difference between condo and townhouse ownership is if you own a condominium unit, owners only own the inside of their unit
  • The HOA maintains ownership and management of the exterior of the building as well as all common areas

Townhome owners own the exterior of the property as well as the plot of the land their townhouse is built on.

Advantages Of Owning Townhouse Over Single-Family Homes

There are advantages of Townhouse Over Single-Family Homes. This holds true for homeowners who do not have children and do not need a large yard. Here are the benefits and advantages of owning a Townhouse Versus Single-Family Homes:

  • Townhomes are more affordable
  • Less expensive price-wise than single-family homes
  • Less maintenance
  • Most townhome communities will cover landscaping, snow plowing, and exterior maintenance in lieu of homeowners association fees
  • Lower expenses in utilities

Townhomes are a hybrid between a condo and single-family homes.

Types Of Buyers Who Benefits Of Owning Townhouse Versus Single-Family Homes

Below are the type of home buyers who may benefit from buying a Townhouse Over Single-Family Homes:

  • First-time home buyers
  • Homeowners who need to downsize
  • Senior homeowners
  • Homeowners who need amenities such as pools, tennis courts, gym, etc.
  • Real estate investors: Townhomes are easier to rent than single-family homes
  • Second home and/or vacation home buyers

Negatives To Owing Townhouse Versus Single-Family Homes

With benefits, there are always negatives. Here are the negative factors in owning Townhouse Versus Single-Family Homes:

  • Homeowners Association Dues
  • Townhome owners do not have full control when it comes to remodeling their homes, painting, putting up a fence, or other improvements that alter the appearance of the community
  • Need HOA approval
  • Added costs and fees like HOA and/or other fees
  • Less buying power due to HOA dues
  • Less privacy than owning a single-family home
  • Townhouse owners have to pay property taxes PLUS HOA fees
  • Limited square footage
  • Generally lower property taxes

Home buyers who need to qualify for a mortgage with a direct lender with no overlays on government and conventional loans, please contact us at Gustan Cho Associates at 262-716-8151 or text us for faster response. Or email us at We are available 7 days a week, evenings, weekends, and holidays.

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