23% of First-Time Home Buyers Want to Purchase a Townhouse. Should You?

Is a townhouse right for you? Here's what you need to know.

If you're a first-time home buyer, you have choices when it comes to purchasing a home. You could opt for a standalone house, or you could buy an attached unit like a condo or townhouse.

In a recent survey by Rocket Homes, 23% of first-time home buyers say they'd like a townhouse to be the first property they purchase. But is that a good bet for you? Here's how to know.

What's a townhouse?

It's easy to confuse townhouses with other types of properties. A townhouse is a multi-level home that shares at least one wall with an adjacent property. A standalone house, by contrast, isn't attached to another home.

The upside of buying a townhouse

Buying a townhouse has its benefits, especially if you're a first-time buyer. Townhouses tend to be less expensive than standalone homes, at least within the context of being in the same neighborhood. That means if you're willing to live in a townhouse, you might end up with a much lower mortgage than you would with a detached home.

Also, when you own a townhouse, you're generally only responsible for maintaining its interior. Exterior items are generally dealt with by your homeowners association (HOA). That means you don't have to deal with mowing the grass every weekend or shoveling snow in the winter.

Furthermore, many townhouse communities come with shared amenities like playgrounds and swimming pools. Those are features that don't always fit in your typical backyard, and they can be costly for the average homeowner to maintain. But when you own a home in a townhouse community, you're not responsible for cleaning the pool or fixing busted swings.

The downside of buying a townhouse

Sharing at least one wall with a neighboring home means having less privacy and potentially being subjected to more noise. These days, a lot of people are working from home and plan to continue remote work for the foreseeable future. But if you happen to buy a townhouse that comes with a loud neighbor, that could impact your ability to be productive during the day.

Also, when you buy a townhouse, you may not get much outdoor space, if any. If you really want your own private backyard to run around in, you may need to opt for a standalone home.

Furthermore, the HOAs that govern townhouse communities can sometimes be pretty strict with the rules. Your HOA, for example, may not allow you to get a dog, or it may ban certain breeds. And speaking of HOAs, you'll pay a fee to be a part of one. That fee could be expensive, and it could rise over time.

Granted, that fee will also take the place of some of the maintenance you might otherwise have to do yourself for a standalone home, like lawn care. But it's something to consider nonetheless.

Is a townhouse right for you?

It's common to buy a townhouse as a starter home and upsize to a larger space later. If you're having a hard time finding standalone homes within your budget, then you may want to consider buying a townhouse. Just make sure to think through the pros and cons before you make that choice.