Town house vs. house: Weighing the pros and cons

You already know buying the right type of home depends on a wide variety of factors, including your lifestyle, your finances, and your community. That said, what should you consider when choosing to buy a single-family house or a town house?

Great question. Single-family homes and town houses both offer unique lifestyles and responsibilities, and understanding the differences can help you find a fit that feels like home.

What are the main differences between a town house and a single-family home?

The main difference between a town house vs. house is the foundational structure. Single-family homes are generally detached, with no shared walls. Those who own single-family homes have ownership of both the house and land, as well as maximum privacy and control.

What is a town house, exactly? Town houses are attached homes, often multistoried, and part of planned communities. Townhomes usually use homeowners associations (HOAs) to manage rules, shared spaces, and amenities.

Comparing townhomes and single-family houses

When deciding between townhomes and single-family houses, it’s important to consider structural and legal differences as well as factors that affect daily living.

Here’s a quick comparison table to help you make a decision:

Landownership and property lines

Buying a single-family homes comes with full landownership, including yards and boundaries, which is why single-family homes are typically built in suburban neighborhoods or more spacious areas.

Town house owners, on the other hand, usually control only smaller private areas. Ownership interest usually refers to larger collective green spaces shared among town house residents.

Different foundational structure and size

Size is a major differentiating factor between single-family homes and town houses – in many cases, single family homes are larger.      Data shows that newer single-family homes built in the last decade average about 2,687 square feet, while town house square feet clocks in at around 1,300 – 1,500 average square feet per unit. In addition, detached homes typically include larger yards for pets, kids, and entertaining, while town houses usually have limited private outdoor space.

Detached houses also provide more privacy and noise reduction. The floor plans for town houses are compact and designed more efficiently, with multiple stories, but that also means inhabitants share at least one wall, reducing privacy.

Control of home appearance

Depending on whether they’re part of an HOA, owners of single-family homes have nearly complete freedom over exterior design and landscaping. Town house owners, on the other hand, must comply with HOA rules for uniformity.

Those with an HOA may not have control over the following:

• Paint colors
• Window styles
• Patio decor
• Fencing
• Landscaping
• Roofing
• Solar panels

Check with any potential HOA where you plan to purchase about any restrictions, but remember that single-family homes may exist in a neighborhood with HOA restrictions.

Pros and cons of buying a town house

Use this list of pros and cons to carefully consider whether a townhome fits your needs.

Advantages of townhomes

The advantages of townhomes include:

• Accessibility of various amenities: Town houses often have access to community spaces or amenities connected to an HOA, which may include parks, pools, and community gyms.
• Renovation potential: Unless the HOA rules say otherwise, owners have the freedom to change anything in the interior or exterior of their homes.
• Affordability: Townhomes tend to be more affordable than single-family homes since they’re attached and often lack the yard space that detached homes usually include. This layout can potentially get you more interior space for your money. Learn more with our home affordability calculator.
• Less maintenance: Since they often lack a large yard and attach at the sides to other units, town houses may require much less exterior upkeep than other homes. If your townhome is part of an HOA, you may not have to do any exterior maintenance.

Disadvantages of townhomes

On the other hand, you might consider the following potential disadvantages:

• Less privacy: Since townhomes share walls with the residences next to them, you’ll sacrifice a little privacy to live in one. When you live in close quarters, loud neighbors may become an issue.
• HOA fees and restrictions: Many town house communities are part of an HOA or subject to HOA fees. This can be a downside for potential home buyers who don’t like the idea of feeling regulated, so it’s important that you’re comfortable with all HOA rules.
• Potentially diminished resale value: In some areas, townhomes may sell for less than single-family homes or may only market to a smaller pool of potential buyers. Before buying a town house, you may want to examine the real estate market where you live to help determine if you’re purchasing a worthwhile investment.
• Not as much living space: While town houses typically have multiple floors, they’re usually not as large in terms of square footage. Living in a multilevel home can also present mobility and accessibility issues, especially for older home buyers.

Pros and cons of buying a traditional home

Single-family houses have their pros and cons to consider as well, which we’ll discuss below.

Advantages of traditional houses

Read on for the advantages of single-family homes:

• Stronger value appreciation: Historically, single-family homes have often appreciated faster than attached homes in many markets – but appreciation varies considerably by location and time period. Houses have experienced more growth over the last 10 years – 9.1% versus 3.3% for townhomes and condos over the last 10 years.
• Potential rental income: Detached homes may offer opportunities to rent out rooms, basements, or accessory buildings for extra income.
• Provide complete privacy: Detached homes have no shared walls, reducing noise and offering more personal space, which also extends to outside areas, unlike townhomes.
• Potential for accessory structures: Single-family lots often allow additions like garages, sheds, pools, or accessory dwelling units (ADUs) that may not be possible with condos or town houses.

Disadvantages of traditional houses

Read on for the potential disadvantages of traditional homes before you make a final decision:

• Higher maintenance: Traditional homes often require more upkeep, repairs, and higher utility costs than condos or town houses because you usually can’t rely on an HOA to fix your home exterior – it’s completely under your control.
• Fewer shared amenities: Traditional homes rarely include pools, gyms, or other community features, which means you might have fewer “perks” right in your community.
• Higher price: Detached homes often have a higher purchase price, which can make them harder for first-time buyers to afford. For example, townhouses cost about $70,000 – $90,000 less than detached single-family homes.
• Lower sense of community: Detached homes might not be as conducive to a feeling of community compared to HOA communities. Town home living involves sharing walls, so you likely can’t continue your daily life without meeting your neighbors – you’re likely more isolated in single-family homes.

Should you buy a townhome or a single-family home?

There’s no one-size-fits-all answer as to whether you should buy a townhome or single-family home. Town houses are ideal for buyers seeking affordability, low-maintenance living, and community amenities. On the other hand, single-family homes suit those who prioritize privacy, space, control, and long-term investment potential. Which appeals to you more?

Key factors to consider

It’s important to keep in mind the following considerations: your budget, home autonomy, lifestyle, privacy, and long-term goals. Let’s take a look at each of these factors.

Your budget

One of the biggest factors to help you decide between townhomes vs. single-family homes is your budget. How much can you afford to put toward a mortgage? If you’re not sure, consider using our home affordability calculator.

Don’t forget to consider other costs you’ll pay along with your mortgage, such as property taxes, homeowners insurance, maintenance, and HOA fees. Knowing your full financial picture will help you pick a home that comfortably fits within your budget.

Your home autonomy

How much control would you like to have over home appearance and modifications? In other words, would you rather have an HOA making rules and putting potential restrictions on what you do with your home, or do you prefer to have complete autonomy over your home? Consider the pros and cons of townhomes we listed earlier in the article before you decide.

Your lifestyle

It’s also important to consider your preferred lifestyle. Do you like weekends of yard work and DIY projects or would you rather enjoy low-maintenance living with community amenities? You can outsource yard work and projects, but it might be more expensive to do that than pay HOA fees.

Ultimately, your lifestyle preferences can help determine which property type is best.

Your privacy

How much personal space do you prefer? If you envision living in the country with no neighbors, it’s probably obvious that you belong in a single-family home versus living in a community setting with shared spaces. On the other hand, if you crave community and have always wanted to enjoy shared spaces like a community pool, your ideal space might just be a town house. Your privacy preferences could ultimately help you decide where you want to live.

Your long-term goals

Thinking long-term about your future goals is key to understanding what you should do about your immediate housing choices. For example, considering your preferences for space and needs 10 years from now could also help you with your home shopping.

Will family growth, hobbies, guests, or work-from-home setups affect your long-term goals, and your decisions about where to live? Understanding any future plans (as much as you can plan for, anyway!) ensures the home continues to suit your lifestyle.

FAQ about the townhouse/single-family home decision

Still have lingering uncertainties about whether a townhouse or single-family home will work best for your needs? Let’s take a look at a few frequently asked questions.

Is a town house different from a row house?

A row house and a town house are very similar in that they’re both attached homes in a row. Row houses are usually older, while town houses often come in modern developments with HOAs that handle exterior maintenance and community amenities. Learn more about the types of houses to learn more about your entire range of options.

Can you finance town houses and row houses?

Yes, you can usually finance both with conventional mortgages. You can take advantage of different types of conventional mortgages, such as those with fixed-rate loans, where interest rates stay the same; or adjustable-rate mortgages (ARMs), which means interest rates vary over the life of the loan.

Contact a Home Loan Expert to discuss loan options you may qualify for.

Is a townhome or a single-family home a better investment?

Townhomes and single-family homes can both be good investments. Single-family homes often build more equity, while townhomes in strong rental markets can generate steady income with less maintenance. You could even consider keeping the townhome as an investment property after using it as a starter home if you later move to a traditional home. That way, you’d have two properties, but you’d also need to consider the pros and cons of being a landlord. If you plan to rent, confirm local zoning and lender rules, insurance, and tax implications.

The bottom line: Advantages to you may be disadvantages to another

There are pros and cons of townhomes vs. single-family homes, and it’s a great idea to consider all of those. However, at the same time, cast a vision. Where do you see yourself living? What do you want your short- and long-term living situation to look like?

Naturally, you’ll need to check up on the financial considerations as well – so many of these decisions depend on what you want for your life and lifestyle.

When you’re ready to start your application, look into your home financing options at Rocket Mortgage.

This article is for informational purposes only and is not intended to provide, and should not be relied on for, medical, legal, financial, or tax advice. You should consult with a qualified professional for advice specific to your situation. Consumers should independently verify that any services, products, or programs referenced meet their needs and comply with applicable requirements.