Townhouse Vs. Apartment: A Comparison For Home Seekers

Choosing the type of dwelling you’ll call home is a highly personal decision that could have a significant impact on your level of satisfaction with your living situation for years to come. Townhouses and apartments stand at the forefront of urban living choices, each offering unique benefits and a distinct lifestyle.

Let’s take a close-up look at the differences between townhomes and apartments so you can make a more informed decision – one that fits your needs, dreams and budget – if you’re trying to choose between the two.

Defining Townhomes And Apartments

In order for you to fully understand the differences between townhouses and apartments, it’s important to first know the basics of each housing option.

What Is A Townhouse?

A townhouse, sometimes called a rowhouse or townhome, is a type of housing unit that shares at least one wall with an adjacent property. Typically, each townhouse unit has its own separate entrance and at least one external wall.

Some home buyers find that townhouses’ standalone nature and shared walls offer a sense of community while still allowing for an independent living experience. Residents may rent or own the unit they live in, but ownership is very common. In some cases, townhomes also present an opportunity for multifamily investing.

What Is An Apartment?

An apartment is a unit within a building that contains multiple dwellings, often stacked on each other. Apartments range from simple studio layouts to expansive luxury penthouses, with monthly rent costs ranging just as widely. Units in apartment buildings are usually rented for a specific timeframe, with all details outlined in a lease agreement.

Apartment living can be helpful for those in the early stages of their credit-building journey or not seeking a commitment to long-term housing.

Key Differences Between Apartments And Townhomes

The main differences between apartments and townhomes lie primarily in the cost of ownership and the amenities each living space typically offers.

Let’s dig a bit deeper.

Cost Considerations With Apartments And Townhouses

When choosing between a townhouse and an apartment, remember to plan for both upfront costs and ongoing expenses.

Townhouses typically require a bigger initial investment that includes a purchase price and associated costs such as a down payment and closing costs (in the event the townhouse is being purchased, not rented). You’ll also have ongoing expenses such as maintenance costs and, in many cases, HOA fees.

Apartments (at least the ones that are rentals) tend to offer lower upfront costs and require little to no maintenance, making them perhaps more attractive to people who aren’t able to fork over a lot of money upfront and would rather not be responsible for any upkeep beyond standard preservation measures.

Amenities Of Apartment Buildings Vs. Townhouse Communities

In some cases, apartments and townhomes both offer residents access to amenities they wouldn’t find in the typical single-family home. For example, apartment buildings may have shared facilities on site, including a fitness center, a business center and a community swimming pool.

Townhouse complexes may have these same offerings and others. Expect townhome communities – especially higher-end ones –  to offer more shared green spaces, playgrounds, outdoor swimming pools and community gardening areas than an apartment complex.

The Role Of Homeowners Associations (HOAs)

Townhome communities are often linked to a homeowners association. This type of organization is typically managed by a board made up largely of homeowners living within the community. Homeowners associations traditionally oversee property maintenance and keep the property running smoothly.

Oversight Of Apartment Buildings

Most apartment complexes are managed by individual landlords or property management companies, the latter of which are more common with larger properties. Landlords and property management companies serve a role similar to that which an HOA would in a townhome community or a neighborhood of single-family houses. However, HOAs don’t collect monthly mortgage payments as landlords and property management companies collect monthly rent.

Apartment dwellers don’t usually own the rental building or their individual unit within it. The company or landlord that owns the apartment building determines the rules and regulations pertaining to the rental property. This company or landlord is also responsible for maintenance costs, which can help compensate for the lack of autonomy that typically comes with apartment living.

Pros And Cons Of Townhouse Vs. Apartment Life

Understanding the tradeoffs between a townhouse and an apartment is crucial for deciding between the two. Many residents of townhouse communities love their HOA, while other townhouse owners mark it as their biggest frustration. Because the effect of a homeowners association can be unpredictable and vary from one community to another, homeowners associations are considered neither a pro nor a con of townhouse living.

Here’s a breakdown of common advantages and disadvantages associated with apartments and townhomes.

Townhouse Pros And Cons

Apartment Pros And Cons

Apartment Vs. Townhouse FAQs

Choosing between a townhouse and an apartment can leave you with plenty of questions. Here are answers to some of the most frequently asked questions about townhouses versus apartments.

Are townhouses cheaper than apartments?

The cost comparison between townhouses and apartments can vary significantly based on location, size and amenities offered. Generally, townhouses carry a higher cost due to ownership and maintenance responsibilities.

The cost of monthly rent for an apartment is prone to fluctuate, however, since landlords and property management companies can decide at any time to charge more.

What’s the main difference between a townhouse and an apartment?

The primary distinctions between a townhouse and an apartment revolve around ownership and building structure. Townhouses are most often individually owned properties that share one or two walls with adjacent properties but have their own entrance and, in some cases, multiple floors.

Apartments are part of a larger building where the living spaces are usually on a single level and the land and building are owned by a landlord or property management company, with each resident renting their specific unit and sharing common spaces with others who live on the property.

What is a townhouse versus a condominium?

A townhouse and a condo differ mainly in ownership and structure. With a townhouse, you typically own your unit and the land it’s on. Oftentimes included with the land and townhouse unit are multiple floors and a yard, with shared walls between neighbors.

A condo, on the other hand, involves owning just the inside of your unit while common areas such as pools, gyms and outdoor spaces are owned collectively by all the condo association members. This means condos often have more shared amenities and maintenance handled by the association, while townhouses offer more privacy and personal space.

Can I customize my living space in a townhouse or apartment?

Customization is limited in apartments due to leasing agreements, while townhouses usually allow more freedom to renovate their interior space – subject to any HOA regulations. To meet community standards, both townhouses and apartments will usually restrict what residents can do in the outdoor space.

The Bottom Line: Townhouses And Apartments May Both Be Worth A Serious Look

At the heart of it, finding the perfect living situation is all about what feels right and fits seamlessly into your lifestyle and personal preferences. The choice is yours between the unique character and investment potential of a townhouse and the flexibility and convenience that usually come with apartment living.

Eyeing your next place to call home? Connect with an agent today and get started.