Condo Vs. Townhouse: Which Is Best For You?

Konstantin L/Volodymyr Kyrylyuk/Adobe Stock

The traditional American dream home might be a detached single-family house with a yard (white picket fence optional), but many people prefer to live under a shared roof. Housing options like condos and townhouses allow you to cohabit with others without counting them as roommates: Each unit is an individual private residence within a single or a semi-detached building. They also allow you to become a homeowner for less money.

However, each of these home options has a distinct style, from apartment-style condos to spacious rowhouse-style homes with their own yards. Each option also has distinct benefits and downsides. Let’s dive more deeply into the condo vs. townhouse debate, and the differences between the two.

Condo vs. townhouse: Definitions

Condos, short for condominiums, tend to be one-story units within a single, large building, often a high-rise. There are common spaces, like lobbies, parking areas and outdoor spaces, and typically some communal amenities as well — depending on the level of luxury, these can include things like a pool, clubhouse, library, gym or even jogging trails and children’s playrooms. When you buy a condo, you own the interior of your unit only — maintenance for exteriors falls to the condo board or HOA.

Townhouses, on the other hand, are usually multi-level structures built side-by-side, sharing at least one wall with neighbors. These homes tend to have more interior square footage than condos and often come with small front- and/or backyards too (which means you’re responsible for the maintenance of your own yard). There may even be an attached private garage. If you’re looking to buy a home on a budget, a townhouse can provide a kind of hybrid experience: living in an individual house while also having the perks of community membership, like shared amenities.

Differences to look out for

Apart from the structural differences, there are distinctions between condo and townhouse life as well. For example, while both are typically ruled by a homeowners association, some condo associations might impose stricter rules, while townhouses can offer a bit more flexibility. Here are some of the main differences to consider:

• Cost: Both options will usually be cheaper than a freestanding home, and both will have some form of monthly HOA dues — these can vary depending on the level of amenities offered. But since condos generally tend to be smaller than townhouses, and don’t tend to have their own land, they are often less expensive.
• Insurance: Homeowners insurance for the two look different as well. Condo insurance generally covers just the interior of your unit, while the insurance on a townhome covers the inside and outside, which can make it costlier.
• Maintenance: Typically, condos require very little maintenance, since the HOA takes care of most upkeep and there’s no need for yard work, snow shoveling and the like. Townhouse owners, though, have to maintain their home’s exterior as well as the interior.
• Amenities: A high-rise condo building may offer more in-house amenities than a spread-out townhouse community. Think about what perks are most important to you — like security, a gym or a dog park — and compare what the various communities in your area offer.
• Location: Location is an important factor to consider when buying any home. Condos — particularly high-rises — are often more centrally located within a city, while townhouse neighborhoods tend to be set on more land, so living there might require less walking and more driving.

Condo pros and cons

Pros

• Affordability: The lower price point of a condo can be enticing to first-time homebuyers, as it gets you into homeownership — and onto the path of building equity — for less.
• Low maintenance: Even though you own your condo, you won’t have to maintain any common areas or take care of things like snow removal, raking leaves or roof repairs — that’s the condo association’s job.
• Amenities: Many condo complexes offer residents access to perks like a fitness center, a pool or a rooftop terrace. They are often also located in or near city centers, within walking distance to things like shopping, dining and entertainment options.

Cons

• Monthly fees: Of course, these perks aren’t free — the more luxe the amenities, the higher your monthly HOA fees are likely to be. These fees will also cover everyday things like maintenance and trash removal. And they can be raised as the HOA sees fit.
• Restrictions: With a condo, you only own the unit itself, and you generally have to adhere to the association’s rules, which can dictate how you can renovate the interior (in terms of structural changes) or decorate the exterior.
• Proximity to neighbors: Apartment-like condo life means you’ll see (and potentially hear) your neighbors every day. If you’re someone who values privacy or quiet, a condo might not be a good fit for you.

Townhouse pros and cons

Pros

• More space: Compared to a condo, townhomes are often bigger, with more room to spread out.
• Similar to a detached home: If you like the idea of a traditional house but also the community aspects of owning a condo, a townhouse can offer the best of both.
• Outdoor space: Many townhouses come with small yards, so if you’d like to plant a garden or relax on a patio without too much land to take care of, they are a good choice.

Cons

• More maintenance: With more space comes more upkeep, and since you also own the exterior of a townhouse, there may be some yard work or landscaping as well.
• Lots of stairs: Since most townhouses have multiple levels, they also have multiple staircases. This may not be ideal for those with young children or mobility issues.
• Shared walls: While townhouses don’t have neighbors above or below, they are still attached on one or both sides. So there could be privacy concerns and noise issues.

Bottom line

Condos and townhouses both typically come with a lower price tag than a freestanding home, so they are a smart choice for buyers who want to own for less. Condos are typically smaller, and therefore cheaper, though they may have high HOA fees if there are high-end amenities. Townhouses are typically larger and include a small yard. Either could make an ideal starter home for first-time buyers in particular — a local real estate agent will be well versed in the options available in your area. But both of these housing types will come with monthly HOA fees and rules that must be followed, and if you don’t want to see or hear your neighbors, they’re probably not the right choice for you.