Real estate developers are increasingly recognizing the numerous benefits of constructing townhouses, such as lower costs and reduced opposition to development in residential neighborhoods. The idea of owning a home has long been at the heart of the American Dream, but soaring housing prices have placed traditional homeownership well out of reach for many. As a result, townhouses could represent a new vision of that dream.
According to a report from The Washington Post, townhouses, typically featuring two or three stories with shared walls between units, offer a compromise between single-family homes with larger yards in suburban areas and high-rise apartments in urban centers that are often rented rather than owned. Currently, townhouses make up about 22% of the U.S. housing market, while single-family homes account for 62%. Apartment buildings and condos represent about 10%, with other types of housing making up the remaining 5%.
The U.S. housing market has a significant shortfall, with estimates suggesting a need for between 3 million and 7 million additional homes. Developers have discovered that building townhouses presents several advantages, including cost efficiency and a lesser likelihood of facing “not in my backyard” (NIMBY) opposition. Consumers have responded positively to townhouses, as they encompass all the fundamental aspects of the American Dream while offering lower purchase costs and easier maintenance. Additionally, from an environmental perspective, they tend to be more sustainable.
In major metropolitan areas, the median price for townhouses is typically lower than that of single-family homes. Data from Zillow this summer revealed that, for instance, the median price of a townhouse in the San Francisco area is approximately $382,000 less than that of a single-family home. In Los Angeles, the difference is around $222,000; in Miami, $220,000; in Denver, $190,000; in Washington, D.C., $145,000; and in Phoenix, $130,000.
Christopher Latta, a 51-year-old townhouse owner from Mechanicsburg, Pennsylvania, described townhouses as the “right-sized American Dream.” Having grown up in a single-family home in northern Pittsburgh and facing the challenges of balancing work and family after a divorce, he opted for a newly built townhouse with a garage upon remarrying. He appreciates the reduced yard maintenance on weekends and enjoys a community with nearby bars and restaurants.
However, there are downsides to townhouse living, as the close proximity of neighboring units can lead to issues such as noise and unpleasant odors. Reportedly, some townhouse communities charge high monthly fees, especially if they feature amenities like health clubs, pools, or community centers. Additionally, some retirees may find the presence of stairs in townhouses to be a drawback.
