Condo vs. Townhouse: Which Is Right for You?

The choice between a condo and a townhome often comes down to location, cost, and the level of convenience and amenities that you want in your next home. 

Both of these types of homes are common in suburban and urban areas. If a single-family home in a desirable neighborhood is out of your reach, a townhouse or condo can provide the opportunity to purchase in that area and stay within your homebuying budget. 

What’s the Difference Between a Condo and a Townhouse?

“A condo is an apartment in a condo building, and as an owner, you own the particular apartment within that building,” says Jane Katz, a real estate agent with Coldwell Banker Warburg. When you purchase a condo, you also share access and ownership to common areas in the building, including elevators, hallways and any amenities. 

The typical characteristics of a condominium include:

• It’s an apartment-style building structure. Condos can be in garden-style buildings that are just a few stories tall, or a large high-rise building.
• The living space is typically on a single level, though a condo can have multiple floors. 
• Residents may have access to building amenities such as a doorman, swimming pool, gym, common area or rooftop deck.
• Everything outside of the owner’s unit, including the building and exterior, is maintained by a homeowners association (HOA). 
• Some maintenance issues impacting individual units, such as burst pipes or leaky roofs, may be covered by the HOA 

A townhouse is sometimes called an attached house or a row house. Its defining feature is that it shares one or two walls with adjacent townhouses. They are usually multiple stories in height with a private entrance and sometimes a private back and front yard. “A townhouse is a building that you own in its entirety, including the inside, the outside and even the land underneath the building,” Katz says. 

The typical characteristics of a townhouse include:

• A private front entrance. 
• Two or three levels of living space; some townhouses may have as many as five floors.
• Ownership includes the interior and exterior of the home and the land the townhouse is situated on.
• Owners may be responsible for exterior landscaping and maintenance on their property.
• If located within an HOA community, residents may have access to shared amenities. 
• Annual, quarterly or monthly HOA fees go toward common area maintenance.

Ownership Differences Between Condos and Townhomes

While “condo” often refers to an apartment-style dwelling located within a larger building, it also defines an ownership structure or deed type. 

“In a condo, you are an owner among many other owners,” Katz says. “A board decides the rules, and a management company normally manages the building.”

In a townhouse, on the other hand, the owner usually operates as the “manager and super of their own building,” Katz says. This is defined as fee-simple ownership, meaning the owner of a townhouse owns the unit, the exterior and the land. 

In some cases, some townhouses and row houses may be operated under condo ownership structures. Under this ownership structure, homeowners only own the unit within the wall’s confines. Before purchasing a townhouse, you should ask if the property is under a fee-simple or condo ownership structure. 

Maintenance and Responsibilities 

Both condos and townhouses are typically run and operated by HOAs, and owners must pay fees on a monthly, quarterly or annual basis. 

In a condo, HOA fees will cover the maintenance of the building, upkeep of communal amenities, insurance and monetary reserves. These fees may also go toward maintenance issues that impact multiple units, such as leaky pipes and roofs. Condo owners are only responsible for maintenance costs within their units. 

Townhouse owners, on the other hand, are responsible for maintaining their entire home and the land upon which it’s situated. This means a townhouse owner needs to maintain the exterior of their home, including the back and front yards, leaking roofs and sagging porches. The HOA takes care of communal amenities. 

Cost Considerations: Condo vs. Townhouse

Condos and townhouses are typically more affordable than single-family homes. The national median sales price of a single-family home is $422,100, while the median sales price of a condo is $354,200. 

Upfront Costs

Whenever you purchase a home, regardless of the type of property, you will be responsible for a down payment and closing costs. While the recommended down payment is 20% of the home’s price, many buyers may be eligible to put down as little as 3% down, or even zero down if they qualify for a VA Loan. First-time homebuyers may also be eligible for federal or state down payment assistance programs. 

Some condo buyers might be responsible for application and move-in fees in addition to the down payment and closing costs. Townhouse owners are not usually responsible for these kinds of costs. 

Ongoing Costs

Homeownership incurs additional costs beyond the monthly mortgage payment. In both condos and townhouses, owners are responsible for HOA fees, utilities, property taxes, homeowners insurance and some degree of maintenance. If you’re making a down payment of less than 20%, you may also need to pay some form of mortgage insurance if you finance with a conventional mortgage or an FHA loan. 

Condo owners are responsible for the cost of maintaining their individual units, while townhouse owners will foot the bill for any maintenance required both inside and outside their homes as long as it’s within the constraints of their property. 

Townhouse HOA fees may be less expensive for this reason, but as an owner you are taking on more responsibility. “For a townhouse, you are responsible for knowing what is involved in maintaining the building,” Katz says. “Is the roof in good condition? Are the windows, stairs, elevator (if you have one), and basement? Do you have a pest problem? You need to deal with that cost on your own.”

While HOA fees typically cover maintenance for both property types, large, unexpected expenses can still result in additional costs. For example, the HOA might not have enough cash reserves for a large repair or improvement that needs to be addressed. A situation like this is known as a special assessment, where owners must pay additional funds on top of their HOA dues to cover the cost.

Lifestyle and Amenities 

The lifestyle differences between living in a condo and a townhouse deserve careful consideration. Here are six key factors that differ between these two housing types. 

1. Convenience

If you want to buy a condo, you may be drawn to this apartment-style home for its convenience. Homeowners may feel peace of mind with a doorman or security staff ensuring the safety of the building. A building manager or superintendent may live on the premises, making it easy for residents that have minor issues in their homes fixed right away. 

Condo owners also enjoy the convenience of fewer maintenance responsibilities, as the common areas, exterior of the building and green space are maintained by the HOA. 

2. Privacy 

Condos usually share walls with neighbors on either side of the unit, as well as above and beneath them. “You may hear others’ noise through the walls, ceilings or floors below,” Katz says. If a condo includes a balcony, it could peer directly into a neighbor’s living area. 

Townhouses, on the other hand, are more private. While homeowners will share at least one wall with an adjacent home, they often have a private fenced-in backyard.

“Your neighbors are next to you, but you are in an individual house,” Katz says. “In a condo, you are in an apartment building with neighbors just a few inches or feet away from you.”

3. Space

Both condos and townhouses can vary widely in size. Condos can be as small as a studio apartment with just a couple hundred square feet, or as large as a full-floor penthouse. 

Townhouses are typically larger than condos, but the size can range from a compact two-bedroom home to a generously sized footprint with interior space that competes with that of a detached single-family home. 

4. Restrictions

If your condo or townhouse is managed and operated by an HOA, you will likely deal with some restrictions. HOAs are notorious for having seemingly arbitrary rules, such as approved paint colors for the front door of a townhouse or the type of decor allowed on a condo’s balcony. 

Condos are more likely to have pet restrictions. If you have a pet, you will have to consider if they are allowed. Even if the building is pet-friendly, there may be size or breed restrictions in place. 

5. Amenities  

Condo and townhouse owners may have access to community amenities such as a pool. Additional common amenities could include a fitness center, tennis courts, community centers or dog parks. Condo buildings often feature a doorman or covered parking, while townhouse communities typically offer certain services through their HOAs, such as snow removal and landscaping in common areas. 

6. Community and Neighborhood

You will have to weigh the importance of community in your decision between a condo and a townhouse.

Many buyers may be attracted to a townhouse for its privacy, but this usually means less interaction with the community. “There is virtually no community with townhouses,” Katz says. However, those looking to foster community in their townhouse neighborhood could discuss arranging events or a block party with the HOA. 

Condo buildings, on the other hand, usually offer a stronger sense of community. You may see the same people leaving every morning for work at the same time as you or frequenting the gym or pool.

Is a Condo or Townhouse Right for You?

The choice between a condo and a townhouse ultimately depends on your personal priorities and budget. A condo usually offers more affordability and convenience, while townhouses tend to provide greater privacy and space. Consider the importance of the key differences between both types of homes to determine if a condo or townhome is right for you.