Choosing between a single-family house or a townhouse can be challenging, especially if you're a first-time home buyer. In this article, we break down the best (and worst) aspects of townhouses and detached houses to help you decide which one is right for you.
If you need extra help deciding, we recommend consulting a local buyer's agent who can make tailored recommendations. You can connect with a top local agent here.
What is the difference between a townhouse and a house?
The primary difference between a townhouse and a house is construction:
- Townhouses are multi-unit homes, which means they share at least one wall with a neighbor. They also tend to have narrow, vertical footprints with less square footage and multiple stories.
- Houses are usually single-family dwellings completely detached from other residences.
These types of housing also differ in amenities. Townhouses are typically built in pre-planned townhome communities and share amenities like landscaping, pools, and recreational areas. But the convenience associated with these add-ons may come with higher extra fees than you would have with a house.
Pros and cons of buying a townhouse vs. a house
The pros and cons of townhouses vs. houses are subjective, and they largely depend on your budget and lifestyle. For example, if you don't have pets, you may like the small front and back yards of a townhouse, while someone with an active dog would consider a limited outdoor area a negative.
Here are some factors to consider when choosing between townhouses and single-family houses:
| Townhouse | Detached house | |
|---|---|---|
| Cost | Lower purchase price and tax costs | Higher purchase price and tax costs |
| Resale value | May earn less equity than a detached home | Typically gains equity faster than a townhouse |
| Maintenance | HOA dues often cover exterior maintenance | Homeowner solely responsible for all maintenance |
| HOA fees | Usually has HOA fees for maintenance and common areas | May or may not have HOA fees |
| Privacy | Extra noise and less privacy due to shared walls | No shared walls and more privacy |
| Indoor space | Generally less square footage | Typically more square footage |
| Outdoor space | Communal spaces and smaller yards | More private exterior space with larger yards |
| Customization | More restrictions on customizing the interior and exterior | More freedom to customize based on individual style |
| Community amenities | Most have community features like a playground, swimming pool, and gym | Less access to extra amenities depending on the neighborhood or subdivision |
| Location | Often closer to city centers or more heavily populated suburban areas | Available in most locations, from urban to rural areas |
Purchase price and resale value
If you want to pay a lower purchase price, consider living in a townhouse community. The average cost for townhouses in the US is $382K, with a 4.8% increase year-over-year, while single-family homes are closer to $459K, with a 6.1% increase year-over-year.[1]
However, the resale value of a townhouse will likely be lower than that of a single-family house. For example, if you purchase at the national average and live in your home for 10 years (and yearly trends stay the same), a townhouse would sell for around $96K lower than a single-family home.
Maintenance
Opting for a townhouse over a single-family home can save you money and time on home maintenance. Homeowners associations usually do exterior maintenance for townhouses, while owners of single-family homes are generally responsible for all maintenance.
The cost of home maintenance is often the second-highest expense for homeowners behind utilities. A Real Estate Witch study found that single-family homeowners paid an average of $4,283 on maintenance in 2023.
When asked if it was better to buy a free-standing house or townhome, this Reddit user said: “Don’t buy a [single-family home] unless you are happy spending a lot of your free time cutting grass, raking leaves and shoveling snow, which takes time, physical effort and money for all the equipment you will need. In a [townhome] you won’t need to do any of this, as your HOA will take care of it.”
HOA
Both detached homes and townhouse developments can have homeowners association (HOA) fees. But townhouses are more likely to have HOAs and may have higher association dues, which increase as the community ages.
HOA fees often cover exterior maintenance, snow removal, exterminator costs, and other upkeep that you're usually responsible for as the owner of a single-family house. When managed well, an HOA can make homeownership more affordable and help your property maintain its value because of the regular maintenance.
However, HOA fees may not cover all external repair costs. This Reddit user gave an example: “The HOA fees go towards operating costs, maintenance, and hopefully a reserve. If the HOA bank account doesn't have enough money to cover the cost of a new roof you will get a special assessment which basically requires that you pay for your portion of a new roof anyway.”
Townhouse vs. house: Which is best for you?
A townhouse may be right for you if:
- You want to spend less money on your home purchase
- You prefer convenience over DIY home maintenance
- You're looking for included amenities like a pool and exercise facility
- You enjoy living near urban areas and like close contact with your neighbors
A detached house may be right for you if:
- You want your home to gain equity faster than a townhouse
- You don't mind doing outdoor maintenance such as yard work, painting, and landscaping
- You prefer more square footage and the freedom to do what you want with your property
- You value your privacy and want more space between you and your neighbors
Next step: Talk to an expert
The decision of buying a townhouse vs. house includes multiple factors, but you don't have to sort through them all yourself. Instead, you can find a trusted real estate agent to point you in the right direction.
Consulting a buyer’s agent is free, and they can help you narrow down your home options based on your values, budget, and what’s available in your desired location.
Should you buy a townhouse or a single-family house?
Consult a local real estate agent to make an informed decision. An agent can walk you through your options and help you determine the best choice for your specific situation.
FAQ
Condo vs. townhouse vs. house: What's the difference?
Condos, townhouses, and houses are all properties you can purchase rather than rent. Their construction sets each apart.
- Condos are units in multi-family residences that often share walls and a floor or ceiling with neighbors.
- Townhouses are also part of a multi-unit building but only share one or two walls with other residents.
- Houses, or detached homes, are separate from neighbors and tend to have more land.
Each type of home has different maintenance costs, levels of privacy, and HOA fees.
Is a townhouse a good investment?
Townhouses are typically a good investment for homeowners. These properties usually increase in value year-over-year and often sell for a profit if the townhouse owners want to move later — especially if they're in a desirable neighborhood.
