Condo vs House (Townhouse) – What's Better To Own in 2025

Buying a new home is all about being able to envision yourself in the right place. Should it be a condo, a house, or a townhouse? 

Deciding on the right type of home to buy is a pivotal question in the buying process, keeping in mind that it can affect your finances and lifestyle in the long run.

If you are attracted to all three options and cannot decide between a condo or a house(townhouse), this blog post can help you. We will cover cost, maintenance, location, investment potential, and more. Read on to find out how to make the smartest possible investment in 2025.

Condo, House, or Townhouse: Key Comparisons

What’s the Difference Between a Condo, a House, and a Townhouse?

Knowing what the differences between condos, houses, and townhouses are can help you pick the one that suits your lifestyle the best. These differences usually have to do with size, type of ownership, types of amenities available and more. So, let’s say you are looking for a smaller space on a budget that can accommodate one person and offer nearby amenities. In this case, you can eliminate houses and look into condos and townhouses more. 

These two options can give you access to important amenities close by, so you do not have to leave the area. You can also save a bit more on the cost of owning a condo or a townhouse in comparison to a house. On the other hand, a house might suit single families more due to the extra space and privacy offered.

Let’s take a look at all the pros and cons of owning a condo, house, or townhouse to give you a more in-depth look at the differences.

What is a Condo?

A condo (short for condominium) is a unit within a larger building or community. They are similar to apartments but independently sellable and, therefore, regarded as real estate. 

Due to low maintenance needs, condos are less expensive than houses, making them the perfect choice for first-time buyers. You are only responsible for maintaining the interior and all the rest is managed by the HOA.

HOA, or the homeowners' association, is an organization responsible for enforcing the rules and regulations for properties. The rules include things like how many pets you are allowed to keep or how you can customize the unit. All neighbors pay HOA fees and these costs might be something you want to take into consideration if choosing a condo.

When it comes to the interior of the unit, condo owners have full control over everything. The exterior and the shared areas, on the other hand, are owned and maintained by the Homeowners’ Association.

If privacy is what you value, shared community areas might not sound the best to you. So, keep in mind that, however luxurious the condo is, you will still have to use common areas with neighbors, especially elevators.

On the contrary, if you value security, you’ll like the fact that a lot of condos have doormen or security guards. Also, extra features like fire alarms, security cameras, proper lighting, and an intercom might persuade you to choose a condo.

What is a (single-family) House?

A house (usually a single-family home) is a standalone property, meaning you own the building and the land it sits on. This gives you complete control over your space but also full responsibility for its upkeep. They’re generally larger and are more common in suburban or rural settings. 

Unlike with condos or townhouses, you do not share walls and common spaces with your neighbors. Therefore, one of the main reasons you should opt for a house is the privacy it gives and, in most cases, a lot of land to enjoy. You also have the freedom to make changes, decorate, and maintain the house however you like. 

If you have a growing family, a house allows you to make a lot of adjustments to accommodate your needs. Of course, as long as you follow zoning laws and pay for property taxes, you are allowed to do whatever you want in terms of modifying it.

However, since house owners are responsible for maintenance, if this is not done regularly, house's worth can go down quickly. Keeping in mind that resale value depends on this factor is important for a return on investment.

What is a Townhouse?

A townhouse is a narrow, multi-level, attached building that typically shares one or more walls with neighboring units. Townhouses can be difficult to differentiate when it comes to the exterior alone. These attached narrow residences with multiple levels can be recognized by ownership. Namely, you own both the land the house is on as well as the exterior of the home. 

You also usually share one or two walls with neighbors in adjacent properties. So, if a house is not sitting alongside another unit, it cannot be considered a townhouse. Townhouses date back to the 1600s, and they originated in London and Paris. In the 20th century, in New York, townhouses became row houses built in sets of 4 to 8 rows. Nowadays, each townhouse has its own entrance, small front and backyard, and usually a garage. 

Since they are designed for small, high-density spaces, townhouses are mostly tall and narrow. You can find them in small cities or on the outskirts. If located in suburban areas, townhouses are usually tied to a specific community that has its own HOA. You can also enjoy the resident amenities that often come with the townhouse community. These could be parks, playgrounds, gyms, pools, dog parks, and more.

Difference Between Condo and Apartment

The difference between a condo (condominium) and an apartment mainly comes down to ownership, though there are a few other distinctions too. Here's a breakdown:

• Condo:

  • Owned by an individual.

  • Each unit in the building is owned separately, and owners often pay a monthly fee for shared amenities/maintenance.

• Apartment:

  • Typically owned by a company or landlord.

  • All units in the building are usually rented out, not individually owned.

Summary Table

Difference Between Townhouse and Condo

While townhouses and condos can look similar on the outside or even cost similarly, they have key differences—especially in ownership, structure, and maintenance responsibilities.

1. Condo:

   • You own only the interior of the unit.

   • All exterior areas (roof, yard, walls, etc.) are jointly owned and maintained through the Homeowners Association (HOA).

2. Townhouse:

   • You own the interior and the exterior of the home, including the roof and the land it sits on (like a yard or driveway).

   • You’re responsible for maintaining your property, although there may still be an HOA for common areas.

Comparison Table

Comparing the Costs of Condo, House, or Townhouse Ownership

One of the most important deciding factors when buying a home is the cost. Having in mind the ongoing costs like property taxes, utilities, homeowner’s insurance, mortgage insurance, and maintenance is important. 

These costs can vary a lot depending on whether you buy a condo or a house(townhouse). Since condos are smaller than houses and require less maintenance, they are often cheaper, especially in busy cities. For example, in the San Francisco Bay Area, condos sell for about $686 per square foot, while houses go for around $752 per square foot (according to recent market data).

But there’s a trade-off: HOA fees. These cover things like landscaping, pools, and gyms and can go anywhere between $200 to $1,000 per month, often even more, depending on the location and amenities. Let’s break down the costs in detail:

HOA Fees for Condos Based on The Region

Source: Statista 

Houses usually cost more upfront but don’t have HOA fees – unless they’re in a planned community. Instead, you’ll pay higher property taxes and insurance compared to a condo.

HOA fees for townhouses, on the other hand, vary completely based on location, communities and the services provided by the homeowners association. On average, you can expect HOA fees to range from 100$ to 300$ per month. In a more upscale neighborhood, these fees can be a lot higher, sometimes reaching as much as 500$.

Moreover, larger homes also mean higher utility bills. In Texas, for example, a family home’s utilities might cost $300 to $400 per month, while a similarly aged condo might cost $150 to $200.

If you are in the process of buying a home and need help from a trusted mortgage broker, our team at Kredium is here to help you.

Condo vs. House vs. Townhouse Living: The Pros and Cons

To make the best decision and find your perfect home, outweighing the pros and cons of each option can help you find the most suitable one. First, let’s take a look at the pros and cons table for each option, and then we can delve deeper into the intricacies.

Evaluating the Pros of Condos, Houses, and Townhouses

Exploring all the advantages of each option reveals a lot of benefits tailored to fit people who have different lifestyles and preferences. Analyzing these benefits helps you pick which ones you would align better with your needs.

Condos

Shared amenities in condos can be very useful, especially for people who work downtown and do not like commuting. Namely, many condos come with modern designs, open floor plans, and proximity to nightlife, restaurants, and workplaces.

Modern design and proximity to key locations are important for people who value convenience, accessibility, and a vibrant lifestyle. A 900-square-foot condo with an open plan close to the subway might be perfect. If you work in downtown Manhattan, for example, and do not like commuting, you have everything you need close by.

Low maintenance means that most exterior upkeep is handled by the HOA. Roof repairs, landscaping, and snow removal are typically covered. Also, if the building’s elevator breaks, the HOA will cover the costs. Busy professionals who enjoy a hassle-free lifestyle will appreciate this pro when it comes to condo living.

Cost-effectiveness makes condos a great option for renting, as the costs are only partially covered by the owner. The exterior upkeep, common areas, and landscaping are covered by HOA, so you can expect lower costs, making it a great rental. Costly roof repairs, landscaping, and snow removal are also typically covered by HOA.

Condos are easy to rent out in high-demand areas, especially in college towns where a lot of young professionals and students are looking for convenient, low-maintenance housing. The desirable locations near amenities such as schools, shopping centers, and recreational facilities make them a sought-after housing option.

Community interaction with neighbors fosters a sense of belonging and support. A lot of people who value these connections find that living in places that are designed to promote social interactions can improve their overall well-being. For example, if you have just moved into a condo and do not know the area, these settings can allow you to foster meaningful relationships with residents.

Houses

More space for families, pets, and hobbies is a huge plus when it comes to owning a house. Single-family homes usually feature large living rooms, big yards and rooms that can be customized for different purposes. The abundance of space allows families to grow and still feel comfortable living in the house.

Greater privacy, especially on larger lots, can be attractive to people who value personal space. The bigger size means that you would have to pay a lot more than when it comes to townhouses, for instance. So, if privacy is a priority to you, perhaps a single-family home is the right choice for you. 

Freedom to renovate and adjust allows you to be creative with your living space and customize it to your liking. It is easier for growing families to accommodate a home that allows adjustments and renovations that fit their needs. If you enjoy the flexibility of being able to customize and tailor your living space, then a house is a great fit for you.

Customizable amenities mean adding features to your house that feel useful and fit your lifestyle. Namely, condos might come with amenities, but you do have to share them with other residents. Houses, on the other hand, give you the freedom to add amenities and customize them however you like.

Townhouses

Townhouses are affordable for first-time homebuyers, especially if you are not able to afford a standalone house, but want to live in a specific area, you might want to consider a townhouse. Also, if you are on a budget, purchasing a townhouse can help you stay on track while living comfortably.

Townhouses are compact and spacious, ideal for those on a budget and even though they don’t have large backyards, you won’t feel confined. You can still enjoy a small private backyard if you like spending time in the sun. The fact that it is a smaller space makes it easier to take care of it and stay on a budget.

Low maintenance costs (yard and exterior) mean that you won’t have to worry about constant upkeep, allowing you to spend more time enjoying your home. Also, since they are more compact, there is less space for maintenance to worry about. Here are some maintenance services covered by HOA:

• Maintenance of exterior building features such as roofing, siding, and painting

• Landscaping and lawn care in shared areas

• Collecting waste and recycling

• Upkeep of community facilities, like parks and swimming pools

• Snow removal for communal roads and walkways

Townhouses are close to urban amenities and in favorable neighborhoods, making them a practical choice for those seeking a balance between affordability and proximity to city life. You can find them in downtown or city areas where land is limited. Plus, you can pay less for a more compact home and still be close to important amenities.

Evaluating the Cons of Condos, Houses, and Townhouses

Cons can be very helpful by pointing out flaws you should consider for each type of home before you decide to invest. For instance, issues like noise from nearby neighbors or a slower resale value might be something that makes or breaks your decision, depending on your personal preferences or long term-goals for the property.

Condos

Limited space (no yard) in condos can be a drawback for people who enjoy spending time outdoors or doing activities like gardening, hosting barbecues, etc. If you are not a fan of small spaces, you could feel confined when living in a condo.

Noise from neighbors can add to the negative experience of condo living. Namely, since condo residents share walls, it means that you are much closer to neighbors. Being prepared for this con can help you decide if it would be a big disadvantage for your lifestyle.

Amenities can be expensive, so if you cannot afford them or do not need the extra amenities, condo living might not suit your lifestyle. You might end up paying more but not using the amenities often, leading to increased monthly fees without corresponding benefits. Also, how much you pay varies widely; some areas are more expensive, covering maintenance and repair of shared amenities.

Rising HOA fees are important to consider, even though they cover a lot of maintenance. However, you are still responsible for the interior of your unit. If your condo’s plumbing needs fixing, you pay for it. You can consult our HOA fees for condos chart above to understand the exact cost.

Slower resale value appreciation, as well as the rising HOA fees eating into your profit, could be a big dealbreaker if you were considering ownership for investment purposes. Your financial return when selling your property might end up much lower than expected, so keep this in mind to avoid any financial strains.

Responsibility for interior maintenance is something to take into consideration, even though the HOA covers all other aspects. You want to be sure that if anything on the inside breaks, you will be able to take care of the cost. 

Houses

Higher maintenance(lawn care, roofing, repairs) is something to consider since you are responsible if anything happens to the house. That includes mowing the lawn, cleaning gutters, and repairing the roof. You have full control, but also more work and costs, which could be a deal breaker if you are on a budget.

Higher upfront and ongoing costs associated with owning a house include a down payment (from 3% to 20% of the purchase price), closing costs (from 2% to 5%), as well as additional fees for appraisals and home inspection processes. Think about all these costs before you decide to go ahead with purchasing a house. 

Houses are often located farther from urban amenities, usually in suburban and rural areas. They’re best for those who work remotely or don’t mind commuting. Suburbs like Plano, Texas, or Cary, North Carolina, offer family-friendly neighborhoods with larger lots and good schools.

Houses have no shared amenities, which could be a con if you value communal facilities. This also means that you have to invest your own time and money to build or buy amenities for your house. The lack of shared amenities also means that you won’t have a lot of opportunities for social interaction with your neighbors.

Townhouses

Shared walls can lead to noise and less privacy in townhouses since sound can travel easily between units. Patios are also naturally located closer to each other, so privacy could be impaired. Additionally, limited outdoor space in townhouses may not accommodate larger gatherings or some outdoor activities.

Resale value can be unpredictable because it depends on the location, current market demand, and the presence of HOA. Other important factors that affect the resale value are the proximity to amenities, local schools, and the quality of the neighborhood. HOA affects resale value through their regulations and fees, so some buyers might be deterred by the restrictive rules.

Dependence on HOA for maintenance means that you have limited control over the timeliness and quality of upkeep. A lot of older townhouses might need more frequent repairs and maintenance, which can lead to higher fees. All in all, those variations in the quality of maintenance or even the quality of upkeep from previous owners can be a significant con for townhouses.

Privacy can be impaired due to close patios and outdoor spaces because the neighboring units are close to each other leading to more visibility and potential noise problems. This means you might not enjoy spending a lot of time outdoors, or you might need to install some privacy screens or tall hedges.

Combined Sales Trends Chart for Condos, Houses, and Townhouses

To make the best decision when it comes to buying a home, looking back at the sales trends of Condos, Houses, and Townhouses in 2024 is essential. By analyzing data like sales volumes, buyers can get valuable insights about market trends like the number of units sold and demand fluctuations. So, let’s take a closer look at the sales trends from 2024 below.

Monthly Sales of Condos, Houses, and Townhouses Nationally in 2024

Source: Redfin

FAQs About Condo vs House (Townhouse)

In case we haven’t covered all the aspects of owning a condo, house or a townhouse, take a look at the answers to some of the frequently asked questions below. 

1. Are condos cheaper than houses in all areas?

Not always. Condos generally cost less upfront, but location plays a big role. In some areas, high HOA fees can make condos more expensive over time than a similarly priced house. 

2. What is the difference between landlord insurance and homeowner’s insurance?

Townhouses have landlord insurance costs associated with the ownership. These costs are typically 25% more expensive than homeowner’s insurance because the home is not owner-occupied.

3. Is owning better than renting in the long run?

Owning becomes better than renting in the long run since you gain equity. Renting could be a better option for those who want to avoid all the costs of upkeep, property taxes etc., that come with owning a home.

4. Which is easier to sell: a condo, a house, or a townhouse?

In a lot of cases, condos can be easier to sell than houses. However, condos can be harder to sell than houses or townhouses in cases when there are more units for sale in the complex.

Verdict: Should You Get a Condo, a House, or a Townhouse in 2025?

If you're a young professional in a busy city like Chicago, a condo might be a better fit—less maintenance and easy access to work and entertainment. In case you have a growing family in a suburban area like Phoenix, a house gives you more space, a backyard, and a quieter environment, or if you're looking for a balance between space and convenience, a townhouse could offer the best of both worlds. It provides more room than a condo while still keeping maintenance manageable.

Ultimately, the decision comes down to your needs, wants, and priorities. You should:

• Choose a Condo if you value convenience, amenities, and a central location. Condos are great for city lovers and those who want minimal maintenance responsibilities. Just be mindful of HOA fees and limited space.

• Choose a House if you prioritize space, privacy, and long-term investment potential. Houses are ideal for families, remote workers, and anyone who wants room to grow.

• Choose a Townhouse if you are on a budget but do not want to be cut off from amenities and still want access to a smaller private yard. Also, easier maintenance gives you peace of mind.
  

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