What is a townhouse? A deep dive into the pros and cons.

Key takeaways

• Townhouses are attached single-family homes that typically have multiple levels and share at least one wall with neighboring units, offering more space and ownership than apartments or condos but less privacy than detached houses. 
• Demand for townhouses is rising as buyers seek affordability and efficiency, with townhouses accounting for one in five newly built U.S. homes in 2023, driven by smaller footprints, lower purchase prices and reduced maintenance. 
• Living in a townhouse involves trade-offs, including shared walls, stairs and homeowner association rules and fees, but can offer perks such as shared amenities, lower upkeep and access to urban or suburban locations. 

When searching for a home, many buyers encounter townhouse listings. These homes are typically tall, narrow structures attached to neighboring units. While townhouses are common, they are often confused with apartments, condos and single-family houses.

Townhouses are growing in popularity as a smaller, more affordable housing option. Here’s a closer look at what defines a townhouse, how it differs from other property types and the pros and cons of ownership.

A townhouse is a single-family home that typically has two or more floors and shares at least one wall with an adjacent property. That shared wall is often called a party wall. Townhouses are usually built in rows with no space between units and are commonly found in urban and suburban areas. Many townhouse communities are governed by homeowners associations, or HOAs.

Townhouses originated in Europe in the 1600s as secondary homes for the upper class who needed residences in both urban centers and rural areas. At the time, the term “townhouse” could refer to any city residence, including large detached homes. By the 1700s, it took on its modern meaning: adjoining, shoulder-to-shoulder homes.

The style spread to major U.S. cities, including New York, Boston and Washington, D.C. As urban land became more limited, townhouses transitioned into a form of middle-class housing that made efficient use of dense city space. Today, they continue to provide access to urban amenities while maximizing limited land.

Townhouses are no longer limited to cities and are increasingly common in suburban developments. While designs vary, most share similar features. Townhouses are often built in rows of two to 12 units, with entrances on the narrow street-facing side. Suburban townhouses may include attached garages.

Interiors typically follow a vertical layout, with living areas on the lower level and bedrooms on upper floors.

“If you like split living spaces, that’s a big pro,” said Amanda Oakley, a broker with Trueblood Real Estate. “Because the rooms are on different levels, it can add some privacy.”

Townhouses share characteristics with other housing types but have key differences that set them apart.

Apartments are individual units within a single building, while townhouses are separate homes attached side by side. Apartments are typically rented, while townhouses can be rented or owned. Apartment landlords usually handle maintenance, while townhouse owners are responsible for upkeep and must follow HOA rules when applicable. Both housing types may offer shared amenities, such as pools or fitness centers.

Both condos and townhouses offer ownership opportunities. A condo is a unit within a building, similar to an owned apartment, and owners often share walls on multiple sides, including above and below. Townhouses typically share only one or two side walls, which can offer more privacy. Both may include shared amenities and common areas managed by an HOA.

A townhouse is considered a type of single-family home because it includes ownership of the land and structure. Unlike traditional single-family homes, townhouses are attached to neighboring properties and usually offer less privacy. Detached single-family homes are common in suburban and rural areas and typically provide more private outdoor space. They also allow for greater flexibility in expansions or additions, depending on zoning.

Townhouses appeal to buyers seeking affordability and convenience, but they also come with trade-offs.

Townhouses are part of a broader trend toward smaller homes. A 2024 Washington Post report found that townhouses accounted for one in five newly built homes in 2023, a record high. Smaller homes help reduce costs for both builders and buyers.

Pros

• Affordability: Townhouses often cost less than detached homes. Smaller size also typically means lower heating and cooling costs.  
• Shared amenities: HOA fees often cover amenities such as pools, gyms and community centers. These features can provide convenient spaces for exercise, socializing and recreation without the cost of private maintenance. 
• Maintenance: Townhouses generally require less upkeep than detached homes. HOAs often handle landscaping, snow removal and exterior maintenance. Smaller yards and shared walls can further reduce maintenance responsibilities. 

Cons

• Limited privacy: Townhouse owners often share at least one wall with neighbors, which can affect noise levels.  
• HOA rules and fees: HOAs often regulate noise, rentals, pets, trash and exterior changes. Major renovations typically require approval. Monthly fees can add to housing costs, and unpaid dues can lead to serious penalties, including foreclosure. 
• Stairs: Most townhouses have multiple levels, making stairs unavoidable. This can be challenging for people with mobility concerns. Laundry rooms are often located on lower floors, away from bedrooms. 

A townhouse can be a good fit for buyers seeking a relatively affordable single-family home with less maintenance than a detached house. Townhouses offer more space than apartments or condos and often provide built-in community features.

They may not be ideal for buyers who want complete privacy, large amounts of land or a single-level layout. Stairs and shared walls are key considerations.

Oakley recommended touring a townhouse multiple times and at different times of day.

“That helps you understand the lifestyle,” she said. "Getting to know potential neighbors can also provide insight into daily living."

The purchase process for a townhouse is similar to buying any home.

• Assess your finances: Review your budget, calculate your debt-to-income ratio and get preapproved for a mortgage. Plan for additional costs such as a down payment, closing costs and HOA fees. 
• Choose a location: Research cities, neighborhoods and amenities. Tools like Homes.com’s neighborhood search can help buyers compare schools, parks, shopping and dining options. 
• Start house hunting: Use online listings and work with a real estate agent to find townhouses that meet your criteria. Agents can help evaluate HOA rules and fees. 
• Make an offer: A real estate agent can help structure a competitive offer based on market conditions, comparable sales and potential repair costs. 
• Finalize and close: Once under contract, buyers complete inspections, appraisals and finalize financing before signing closing documents and paying closing costs. 

What defines a townhouse? A townhouse is an attached single-family home, typically with two or more floors and one or two shared walls.

What describes a townhouse? Townhouses are tall, narrow homes often built in rows. Living areas are usually on lower floors, with bedrooms above. They are most common in cities and suburbs and often include HOAs and shared amenities.

Why are they called townhouses? The term dates back to 17th-century Europe, where it described homes located in towns. Today, it refers to a specific style of attached single-family housing, often in or near urban areas.

This story was updated April 7.