For anyone priced out of single-family homes, condos and townhouses are the next logical step. They’re more affordable, easier to maintain, and a great way to start building wealth — but when it comes to long-term returns, which one actually performs better?
📈 A Decade of Growth — Neck and Neck
Over the past 10 years, home values across the U.S. have soared.
According to Realtor.com data:
- Single-family homes: +87.3%
- Townhouses: +86.5%
- Condos: +82.7%
That means both condos and townhouses have delivered strong returns — with townhouses holding a slight edge.
Why? Townhomes often mimic single-family homes in layout and lifestyle, making them more desirable to families and buyers who want “house living” without the full price tag.
🌎 Location Changes Everything
Performance really depends on where you buy:
- Midwest & South: Condos grew faster than townhouses.
- Northeast & West: Townhouses outperformed condos.
In affordable regions, condos benefit from city convenience and demand for urban living. But in high-cost areas like the Northeast or West Coast, townhouses win because they offer land ownership and privacy without the huge single-family price.
🏡 The Case for Townhouses
Townhouses often grow in value faster because you own the land beneath them — a major driver of appreciation.
They also tend to have lower HOA fees, giving buyers more flexibility and better resale appeal.
“Townhouses have strong appreciation potential because the land itself appreciates more reliably.”
However, if the supply of single-family homes rises, townhouse demand can cool slightly.
🏙️ The Case for Condos
Condos shine in urban markets where space is limited. They attract professionals and retirees who want walkable neighborhoods, amenities like pools and gyms, and less maintenance.
In cities like New York, Miami, and San Francisco, condos can outperform other property types — especially when located in luxury buildings with high demand.
But keep an eye on HOA fees and special assessments. High monthly fees (sometimes $300–$2,000+) can eat into equity over time, reducing your overall return.
⚠️ Hidden Costs to Watch
Whether you buy a condo or townhouse, long-term costs matter:
- HOA fees
- Maintenance expenses
- Reserve fund issues or surprise repairs
- Property taxes and insurance
Always review the HOA’s financials before buying — that’s where many investors get caught off guard.
💰 So, Which Wins After 10 Years?
It depends on your market:
- Townhouses often deliver more stable, land-driven appreciation.
- Condos can outperform in dense, high-demand urban areas.
If you want predictable growth and ownership freedom, a townhouse might be your best bet.
If you prefer convenience and city living, a condo can still be a solid wealth builder.
🧭 The Bottom Line
Both condos and townhouses can build serious equity — it just depends on your lifestyle, local market, and how well you manage costs.
Before buying, run the numbers and remember: real estate success is local. What wins in Miami might not in Minneapolis.