Building dreams two walls at a time

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Published Date 2/12/2025

While the future of American home ownership may not be a white picket fence with two cats in the yard, as Crosby, Still & Nash sang about in the ‘70s, townhomes are taking off as the next most common version of home.

Teiruma Gonzalez of Realtor.com reports that townhomes have become the more practical ticket as land for new-construction homes becomes scarce and buyers look for more affordable options. “But townhomes are not just about affordability,” says Gonzalez. “Today, homebuyers are also drawn to the low-maintenance lifestyle these types of homes offer.”

There seems to be a growing demand for low-maintenance living across a broader demographic, her research shows. Buyers value the convenience of minimized responsibilities such as yard work and snow removal, which provides greater freedom and flexibility.

Affordability remains a key priority for homebuyers. That makes townhomes an attractive option as they are often priced more reasonably than single-family homes and especially appealing to first-time homebuyers on a tighter budget or those looking to downsize.

Townhome builder Lombardo Homes focuses on developing townhomes in suburban areas where demand is high, but prices are still manageable. "We plan to continue identifying and developing in locations where townhomes can provide an appealing and accessible option for buyers seeking quality, low-maintenance homes that align with their lifestyle preferences," says their marketing V.P. Melissa Cervin.

Their goal is to offer buyers a chance to own property in desirable, well-designed communities that come with amenities such as walking trails, green spaces, and recreational facilities—all without the hefty price tag typically associated with single family homes.

Builders are stepping up to the plate, making a concerted effort to provide smaller, more affordable inventory to the market in a way that the existing-home market cannot. Gonzalez reports that on a national level newly built townhomes are priced about 12% below other types of new-home listings. Meanwhile, she says, townhomes only offer about a 3% discount in the existing-home segment against other listing types.

Young professionals, especially, are increasingly willing to sacrifice extra space that they do not need, focusing instead on functionality, says Cervin.

"Townhome buyers often prioritize affordability and the low-maintenance lifestyle that comes with an attached home," says Cervin. "They value the convenience of having things like yard work and snow removal taken care of, giving them more freedom and flexibility. This is especially appealing to single professionals, divorced individuals, and newly married couples who do not yet have children."

For builders like Lombardo Homes, building townhomes is not just about providing a more affordable alternative to single-family homes; it is about creating diverse communities that cater to a variety of buyers. The result? Having both townhomes and single-family homes in the same community is an attractive alternative to street upon street of yarded single-family-only homes.

The Home Trends Institute reports that at least 8 in 10 master plan developers are making adjustments to increase affordability, often by reducing lot sizes for detached homes and adding attached homes.

While townhomes could play a significant role as part of the solution to the housing affordability crisis, it’s obvious that they are only one piece of the puzzle—offering a middle ground to first time and move-down buyers. They offer more space and privacy than apartments without the price tag of stand-alone structures.

But the nation’s townhome builders emphasize that solving the broader affordability issue requires more than just building townhomes. It also means increasing the availability of different housing types, speeding up development processes, and cutting through regulatory red tape to ensure affordable homes are accessible to more people.

“Ultimately, while townhomes provide a practical solution for many buyers today, addressing the affordability crisis will require a multifaceted approach,” says Gonzalez. “The goal is to ensure that all buyers can find homes that meet their needs without breaking the bank.”

Realtor, TBWS

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