Condo vs. townhouse: What’s the difference?

Quick insights

• The key points of contrast between condos and townhouses involve owners’ rights, responsibilities, privacy and space.
• Both may be managed by an association of owners, but condos tend to have more amenities and oversight, while townhouses usually provide more space and privacy.
• When comparing these property types, it’s important to clarify what is included, along with the association’s scope and fees.

Condos and townhouses are popular property types among homebuyers seeking a mix of privacy and shared amenities. In this article, we’ll define both property types and dig into the differences between condos and townhouses, including the ways ownership responsibilities can vary.

What is a condo?

A condo, short for “condominium,” is a privately owned residence within a building or complex. Condos can vary widely in terms of layout and structure. Similar to apartments, studio, one-bedroom or two-bedroom floor plans are common, while neighbors might occupy adjacent units. Condo buildings likely have shared amenities, too, such as pools, on-site gyms, storage facilities, outdoor spaces and garages.

Condo ownership rights

Condo ownership extends to the walls of the unit and everything within, including fixtures and appliances; it does not include ownership over the building or any shared spaces. Instead, the building, the land it stands on and common areas are owned by a Homeowners Association (HOA). Alternatively, it may self-describe as a “Condo Owners Association” (COA). HOAs and COAs are typically administered by delegates who live in the building and collect fees from condo owners to fund building maintenance, repairs and upgrades.

What is a townhouse?

A townhouse, sometimes referred to as a “rowhouse,” is a multi-floor home that shares one or more walls with adjacent properties in a side-by-side arrangement. Each townhouse has its own private entrance, and sometimes extras like a dedicated front yard, garage or patio. A townhouse may be part of a single row of homes on a regular city street. Or, you can find townhouses in a larger planned community—even condo associations—with extensive shared amenities, such as pools, fitness centers, social spaces, storage and gated security.

Townhouse ownership rights

Townhouse ownership typically includes the living space itself, the walls around it, all interior fixtures and appliances, the home’s entrance and the lot it stands on. Townhouses are sometimes managed by an HOA, which means owners often pay regular fees to cover certain maintenance and repairs. Within the HOA’s rules, owners usually have the freedom to make modifications to both the interior and exterior of their unit.

Condominiums vs. townhouses: Key differences

Though they are similar in some ways, there are many differences between townhouses and condos. The distinguishing factors may vary depending on the specific property and location. Some of the key differentiators are:

• Ownership: Condo ownership includes less of the building they live in than townhouse ownership does. Condo ownership extends to the unit’s walls and what’s within them, while townhouse ownership includes the building itself and the lot it stands on. In this way, townhouses may be considered condos if ownership of the townhouse doesn’t include the exterior.
• Responsibilities: Condo owners typically have fewer building-related responsibilities when compared to townhouse owners. This is because HOAs for condo buildings often take on larger share of maintenance and repair work when compared to townhouse HOAs.
• Amenities: Condo buildings tend to have more extensive shared spaces and amenities than townhouses. While more amenities provide residents with more choice of activities and where to spend their time, it can also justify higher HOA fees.
• Privacy: Townhouse units share a maximum of two walls with neighboring units, while condos can be surrounded by neighbors. Having fewer shared walls and a separate entrance provides more privacy for townhouse owners.
• Space: Townhomes are characteristically multi-level and are likely to have more square footage when compared to condos. For either property type, square footage does not include shared spaces.
• Rules: Condo owners can advocate for changes with the HOA and in community meetings; however, owners might have little say in how maintenance, repairs and upgrades are conducted. Townhouse owners tend to have more control over their home, its appearance and how work is done on it.
• Fees: With increased amenities and oversight from an HOA, condos often come with higher fees than townhomes. However, townhome owners may need to pay more out-of-pocket costs for maintenance and repairs related to their property.

What to expect when buying a condo or townhouse

Although properties and associations vary, several considerations may be worthwhile as you move through the purchase process:

• Understand what you’ll own: Clarify with the seller what parts of the structure are included in the listing and what your ownership rights will be.
• Review HOA scope: Make sure you understand what your HOA will be responsible for vs. your own responsibilities. Find out what the fees are and how they are calculated. Furthermore, inquire about community rules and determine if you can comfortably abide by them.
• Modification flexibility: Townhouses and condos may both have restrictions on unit modifications. See what kinds of customizations are permitted, keeping your personal tastes and plans in mind.
• Privacy and layout concerns: During a tour of the property, note how frequently you see and hear building neighbors. The lived experience is likely to be similar, so it’s important to consider alignment with your desired lifestyle.
• Resale factors: Factors like location, amenities, building age and condition, parking availability and so on may influence the long-term value of the home.

In summary

Condos typically blend private ownership with shared amenities, making this type of property an attractive option for many homebuyers. When considering a purchase, an important aspect could be whether a condo is FHA-approved. This designation might provide access to an FHA loan, which can have more flexible purchase requirements. On the contrary, prospective buyers who would take on maintenance responsibilities in favor of more space and privacy may prefer living in a townhouse.

As you make your own condo vs. townhouse comparison, be sure to assess your own needs and get all the information necessary to make an informed decision.