Condos vs Townhouses: What’s the Difference?
Condos are units within a larger complex, while townhouses are separate houses including the surrounding land.
Written by Payton Ternus
Reviewed by Melanie Reiff
Condo owners have their own unit of a larger complex, while townhouse owners own the physical house itself and the land surrounding the property.
If you’re looking for a new home, you’ll need to consider the kind of housing and community you want. Many people are turning to condos and townhouses for more of a community-oriented lifestyle.
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What are the differences between condos and townhouses?
Condos and townhouses are both homes you can buy, so you won’t be paying rent to a landlord. However, each is conducive to a different lifestyle.
If you buy a condo, you’ll own a unit in a larger housing complex. However, you’ll own the house itself along with the surrounding property if you choose a townhouse. Let’s take a look at the basic definitions of the two before breaking down their differences.
What’s a condo?
Condominiums, or condos, are similar to apartment-style housing. Condo owners own the interior of their units, but nothing outside of their walls. The building itself, surrounding land, and common areas at the complex belong to a separate entity but are available for the community to enjoy.
Of course, not all condos are like apartments—condos can also be houses situated within larger residential complexes.
What’s a townhouse?
You may share a wall with your neighbors, but townhouses are like traditional houses rather than apartments. They are multileveled buildings that usually have front and back yards and units with shared walls.
Unlike condo owners, townhouse dwellers own the interior, exterior, and surrounding land of the house. They are responsible for the upkeep of all parts of their property, inside and out.
Key Takeaway Condos and townhouses are conducive to more community-focused lifestyles, but you’ll own a different amount of property depending on which you buy.
Homeowners association memberships
One of the biggest differences between living in a condo and townhouse is how you’ll interact with the Homeowners association, or HOA.
Condos
Since condo owners are only responsible for the insides of their units, who takes care of the rest? Homeowners associations (HOAs) are responsible for the care and maintenance of condo complexes.
The HOA takes care of the building exteriors, common areas, and land in the complex. In exchange for this work, condo owners are required to pay monthly charges and follow the HOA’s rules for the complex.
Townhouses
Townhouses are privately owned homes, but they are part of bigger communities with HOAs. These HOAs aren’t in charge of the individual homes but focus on the community as a whole.
HOAs for townhouse communities charge fees for services like garbage and snow removal. They also set guidelines the homeowners must follow to preserve the community aesthetic.
Fees and costs
Price is definitely a factor in deciding on a new home. Condos and townhouses are generally considered affordable options, but they have differences in expenses.
Condos
Since condo owners only own the insides of their units, condos are usually cheaper. Condo owners also usually save money on both insurance and property taxes due to the lower square footage.
However, condo owners have to help pay for repairs or improvements to the complex and to maintain the amenities on the grounds.
Townhouses
Townhouses have higher purchase prices and property taxes than condos. Townhouse owners usually pay lower HOA fees and have fewer communal costs since they are responsible for their own homes.
Amenities and community
The sense of community within condo and townhouse complexes can vary.
Condos
Condos are generally smaller spaces without private outdoor spaces, but they do offer convenience that other housing can’t match. Common amenities offered by condo complexes include:
- Security or doormen
- Event spaces
- Pools
- Playrooms
- Fitness centers
- High-rise rooftop decks
Townhouses
Townhouses provide more space both inside and outside of the home, like yards to gather in and socialize with neighbors. Townhouses give their owners more privacy than condos as a trade-off for more responsibilities and fewer amenities.
Rules, regulations, and responsibilities
No matter what kind of home you buy, you’ll have rules to follow to remain in good standing with the community.
Condos
Condo owners are only responsible for taking care of their own units—everything else goes to the HOA, like roofing or plumbing issues.
The HOA has rules, typically known as Covenants, Conditions & Restrictions, for condo owners to follow. These rules are designed to keep everyone in the complex happy and maintain property value.
Townhouses
Townhouse owners are responsible for the care and maintenance of their own homes, including the land. HOAs may have rules about the community’s aesthetic standards, such as lawn mowing, exterior painting, and landscaping.
Financing and resale value
As a homeowner, you’ll want to know if your property will hold its value when you want to sell. Are condos or townhouses more valuable?
Condos
If you buy a condo, you are responsible for maintaining the value of your unit. You’ll want to make sure it’s in a well-maintained building with a good reputation.
Keep in mind that financing a condo can be difficult, which may influence your home’s resale value.
Townhouses
You’ll be completely responsible for maintaining your townhouse’s interior, exterior, and surrounding property. Your HOA can help maintain the community aesthetic to stabilize retail values.
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MORE: How to get homeowners insurance after a lapse in coverage
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What’s the difference in cost between a condo and a townhouse?
Purchase costs will vary by factors like region, credit score, and risk level. Condos are typically cheaper in terms of purchase price and insurance but have more homeowners association and repair costs than townhouses.
Should I get a condo or townhouse?
Your purchase will depend on the kind of lifestyle you’re looking for, what’s available in the area, and your budget. Look around for your best options!
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