For buyers priced out of single-family homes, condos and townhouses often become the next best option. Both offer lower price tags, less maintenance, and an accessible path to homeownership—but which is the stronger long-term investment?
Looking back over the last decade, townhouses appreciated 86.5%, nearly matching single-family homes at 87.3%, while condos trailed slightly at 82.7%. The numbers reveal that both options deliver solid equity growth, yet regional differences show that local market forces play a decisive role.
- In the Midwest and South, condos outpaced townhomes, fueled by affordability and demand for urban living.
- In the Northeast and West, townhomes surged ahead, riding the scarcity of single-family homes and their “house-like” appeal.
Townhouses often win on long-term equity because they also tend to have lower HOA fees, making them more attractive for resale. However, in dense urban markets, condos can outperform, especially when high-rise amenities and location drive demand.
Hidden costs are another consideration. HOA fees and special assessments for condos can eat into equity, while townhouse owners must budget for larger maintenance costs like roofs and exterior repairs.
On a personal note, Eric and I own a small condo that we rent. It has been a modest investment, but one that has cash-flowed well for us for years. It’s a great example of how real estate can serve as a steady income stream while appreciating over time.
If you have questions about how you can add properties to your portfolio, whether as a retirement strategy, a way to educate children or grandchildren, or a path to generational wealth, reach out. I would love to help you explore the possibilities.
