Key Differences Between Condos and Townhomes: What You Need to Know

Key Differences Between Condos and Townhomes: What You Need to Know

Structure

A condo is a private residence that is part of a building or community with multiple units. Each unit is individually owned. Condos can come in a variety of sizes and styles and are typically smaller than townhomes. Condos usually share walls with adjacent units and have shared common spaces maintained by a homeowners association (HOA) for a required fee.

Townhomes are single-family residences arranged in a row, often featuring two or more floors with shared walls. They resemble detached single-family homes, with living spaces like kitchens on the ground floor and private areas like bedrooms upstairs. While condos can be located on any floor level (including high rises), townhomes start at ground level and may require navigating stairs daily.

Ownership

Condo owners only own their unit’s interior, while the HOA owns the building and exterior. Townhome owners, however, own both the interior and exterior of their unit, including any yard, patio, or deck. Both property types can be rented or purchased.

Privacy and Freedom

Condo living involves adhering to HOA rules (CC&Rs), which govern aspects like:

• Pet restrictions (breeds, weight limits, and living conditions)
• Trash and recycling guidelines
• Exterior paint colors, mailbox styles, and landscaping
• Holiday decorations and exterior modifications

Townhome owners have more freedom to customize their interiors and exteriors, as they are responsible for their own maintenance.

Homeowners Association Fees

Condo HOA fees are typically higher due to amenities like gyms and communal spaces. These fees may also cover insurance, water, and Wi-Fi. Townhome HOA fees are usually lower and often cover limited services like lawn maintenance or water bills.

Legal Status

In the U.S. and Canada, condos are regulated by specific federal and local laws. Townhomes fall under rules applicable to single-family homes.

Common Areas

Condos feature shared amenities like pools, gyms, and playgrounds. Townhomes lack significant communal spaces, as owners control their exterior land.

Value Appreciation

Townhomes generally appreciate faster than condos, as they offer more privacy and land ownership. Resale value tends to be higher for townhomes.

Home Insurance Rates

Condos have lower insurance costs since coverage is limited to the interior. Townhomes require insurance for both interior and exterior, leading to higher premiums.

Your choice between a condo and townhome depends on lifestyle preferences, desired amenities, and privacy needs. For listings of new properties, visit Pre-ConstructionHomes.com.