Please ensure Javascript is enabled for purposes of website accessibility

This device is too small

If you're on a Galaxy Fold, consider unfolding your phone or viewing it in full screen to best optimize your experience.

Skip to main content

What Is a Townhouse? What to Know Before You Buy

Updated
Christy Bieber
Ashley Maready
By: Christy Bieber and Ashley Maready

Our Mortgages Experts

Eric McWhinnie
Check IconFact Checked Eric McWhinnie
Many or all of the products here are from our partners that compensate us. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation. Terms may apply to offers listed on this page.

What is a townhouse? This is an important question for home buyers. A townhouse could be an ideal type of real estate if you're looking for an affordable single-family home.

A townhouse is a type of property that has at least one shared wall with another home. However, it is individually owned. It can cost less to buy than a detached home, but provide broader ownership rights than a condo. Let's take a closer look at townhouses and who they might be right for.

What is a townhouse?

A townhouse is defined as a single-family home that shares at least one wall with another single-family home. Unlike a duplex, each individual attached townhome can have a separate, independent owner.

Townhouses usually have two or more stories. If you buy a townhouse, you'll own the exterior of your home, the land it's built on, and the interior. Townhouses often cost less than fully detached homes. This can make it easier to purchase them, even with a small budget.

If the best mortgage lenders have indicated you can't qualify for a loan large enough to purchase a detached single-family home, a townhouse could be a better fit for your budget. And you can use one of the best real estate apps to find one, just like you would a single-family house.

How is a townhouse different from a condo?

If you're comparing condos vs. townhouses, you'll notice some key differences.

Condo owners typically own only the inside of their unit. The exterior, the roof, the driveway, and the lawn of the condo are collectively owned by the condo association.

Townhouse owners, on the other hand, own the interior and the exterior of their homes. This includes the lot their property is located on and the lawn. In some cases, townhouse ownership provides more autonomy. A townhouse owner can make desired changes to their exterior landscaping or color scheme, as long as HOA rules allow it.

However, townhouse owners also often have more responsibility. For example, you may be responsible for repairing your roof if it leaks -- depending on the agreement with your homeowners association. But a condo owner with a top-floor unit would not need to arrange or pay for repairs of the building's roof.

What are the pros & cons of buying a townhouse?

There are some advantages and disadvantages to purchasing a townhouse.

Pros

  • Townhouses can be less expensive to purchase than single-family homes. At today's mortgage rates, which are at 20-year highs, many people may be unable to afford a single-family home, so a townhome could be a good alternative. However, it's important to use a mortgage calculator to estimate total monthly payments. This can help ensure a townhome is within your budget if you're considering buying one.
  • Townhome owners may have more flexibility than owners of condos.
  • Townhouse communities often have an HOA that handles some exterior maintenance tasks, like landscaping and snow removal. This can reduce the time and cost involved in homeownership.
  • Many townhome communities offer amenities in shared communal areas, such as pools, playgrounds, or gyms.

Cons

  • You'll have less privacy than a single-family home, since your home is attached to another dwelling.
  • You may be subject to strict homeowners association rules and requirements. These can affect options for the exterior appearance of your home or other issues such as the number of pets you can own. And you may owe an HOA fee.
  • You may have more responsibility for repairs and maintenance than you would if you owned a condo.

Is buying a townhouse right for me?

Buying a townhouse may be the right choice if you want the type of shared amenities that are common in townhome communities but you want more autonomy than you'd have in a condo. It may also be a good choice if you cannot afford mortgage payments on a detached single-family home in your desired location. A townhouse might be within your price range.

However, if you'd prefer more privacy and don't want to share at least one wall with your neighbors, a detached single-family home might be preferable. And if you want to be responsible only for your own interior space and not for any exterior maintenance or upkeep, a condo could be a better choice.

Still have questions?

Here are some other questions we've answered:

The Ascent's best mortgage lenders

If you want to uncover more about the best mortgage lenders for low rates and fees, our experts have created a shortlist of the top mortgage companies. Some of our experts have even used these lenders themselves to cut their costs.

FAQs

  • Townhouses and apartments have some similarities, but they are different. Townhouses tend to be larger and span multiple floors, while apartments are usually on just one level. Townhouse and apartment communities sometimes have the same amenities, though, such as pools, parks, and playgrounds. Apartments are also more likely to be rental properties -- although you can also rent townhomes in some areas.

  • Financing a townhouse purchase is the same as for a single-family home, so you will have your choice of lenders offering conventional loans as well as government-backed loans.

Our Mortgages Experts