Townhomes are taking off as available land for new-construction homes becomes scarce and buyers look for more affordable options.
But townhomes are not just about affordability. Today, homebuyers are also drawn to the low-maintenance lifestyle these types of homes offer, according to Melissa Cervin, vice president of marketing at Lombardo Homes.
"This shift reflects a growing demand for low-maintenance living across a broader demographic," says Cervin. "They value the convenience of minimized responsibilities such as yard work and snow removal, which provides greater freedom and flexibility."
In suburban areas, where prices for single-family homes are rising, townhomes are becoming especially popular. Lombardo Homes has also seen an increase in demand for its attached townhome communities.
Affordability: The key to today's homebuyer
In today's market, affordability remains a key priority for homebuyers, making townhomes an attractive option because they are often priced more reasonably than single-family homes. It makes them especially appealing to first-time homebuyers on a tighter budget or those looking to downsize.
With that in mind, 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," Cervin says.
These homes also 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 detached homes.
"Builders are making a concerted effort to provide smaller, more affordable inventory to the market in a way that the existing-home market cannot. Townhomes are a significant portion of that effort," says Realtor.com® senior economist Joel Berner.
"Nationally, newly built townhomes are priced about 12% below other types of new-home listings. Meanwhile, townhomes only offer about a 3% discount in the existing-home segment against other listing types."
Townhomes, traditionally built in urban areas, are now gaining market share in new construction, especially in suburban communities.
Perfect for first-time buyers and young professionals
Homebuyers are also 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."
Ideal for young professionals, townhomes are typically located in vibrant, well-connected urban or suburban areas, providing easy access to work, dining, and entertainment. With their modern designs and maintenance-free living, townhomes offer the convenience and functionality that today’s buyers are increasingly seeking.
The first floor showcases an open great room, which opens to an eat-in kitchen, a family entry with a closet, a half bath, and a two-car garage.
The Lombardo approach: Versatility and affordability
For 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.
Cervin also notes though that many buyers now prefer having the option of both townhomes and single-family homes in the same community.
"We will be introducing communities in 2025 that feature a combination of townhomes and detached homes," says Cervin. "This approach allows us to offer diverse housing options that cater to a wider range of buyers, accommodating various lifestyles and preferences within a single community."
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, according to the New Home Trends Institute.
Townhomes: Part of the solution to the housing affordability crisis
While townhomes could play a significant role as part of the solution to the housing affordability crisis, Cervin points out that they are only one piece of the puzzle—they offer an "attractive middle ground."
“They provide a more cost-effective option than single-family detached homes, while still offering more space and privacy than apartments.”
However, Cervin emphasizes 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. The goal is to ensure that all buyers can find homes that meet their needs without breaking the bank.
Article by Teiruma Gonzalez for Realtor.com
