What Are the Different Types of Townhouses Available?

You may have noticed that townhouses come in many different styles, and it’s easy to get overwhelmed when choosing the right one. Picking the perfect type for your budget, lifestyle, and preferences makes all the difference in getting the most out of your investment.

To make things easier, let’s break it all down. We’ll explore the types of townhouses by their appearance, location, and ownership styles. And to make things extra clear, we’ll include real-world examples of each. By the end, you’ll have all the clarity you need to make an informed choice.

All You Need to Know About Townhouses

The term “townhouse” is pretty descriptive on its own. Townhouses are designed for high-density, urban areas, usually characterized by their tall and narrow structures. Typically, these homes are two or three stories tall and share walls with neighbouring homes on one or both sides.

In Canada, you might hear the terms “townhouse” and “townhome” used interchangeably. Both refer to single-family homes that share walls with independently owned units in a planned development.

Townhomes strike a balance between detached houses and condos. They offer more space and privacy than a condo while being more affordable and compact than a fully detached home. Some even include shared amenities like fitness centers or pools, which we’ll discuss later.

Common Types of Townhouses

When it comes to townhouses, there are a few different ways to categorize them. We can look at them by their appearance, such as Traditional Row Townhouses, Stacked Townhouses, and Back-to-Back Townhouses. 

Another way to distinguish them is by location, as townhomes can be found in both urban and suburban areas. And finally, there’s the ownership type, which is arguably the most critical feature of a property. In this case, we have two main options: Freehold and Condominium.

You might also hear about other, less common styles of townhomes, but the ones above are the most relevant for buyers and investors. These are the types you’re most likely to encounter and will want to consider. Let’s dive deeper into each of them.

Traditional Row Townhouses

Traditional row townhouses are the classic style you’re likely picturing when thinking of townhomes. These are multiple homes lined up in a row, with each unit sharing walls on either side (except for the end units). They are typically two to three stories tall, with individual entrances and sometimes a small front or backyard.

One of the key advantages of row townhouses is their efficient use of space, making them ideal for urban areas. They provide the feel of a single-family home with a slightly smaller footprint. Here’s a photo of Stop 19 Stacked Towns by Builtup Developments Inc., which showcases an elegant example of row townhouses.

Stacked Townhouses (Stacked Townhomes)

Stacked townhouses, as the name suggests, are built one on top of the other. Each unit typically occupies two floors, with one unit above and another below. These homes often share a single front entrance but each unit has a separate front porch and staircase.

This design allows for more housing units within a smaller area, making stacked townhouses a fantastic choice for densely populated urban neighbourhoods. They often feel like a cross between a condo and a townhouse, combining affordability with privacy. A great example of modern stacked townhouses is 224 Ardagh Road.

Back-to-Back Townhouses

Back-to-back townhouses are another clever solution for maximizing space in urban developments. Unlike traditional row townhouses, these homes are attached not only on the sides but also at the back, which means they don’t have backyards. However, they typically make up for it with efficient layouts and affordability.

These homes are often built around a central courtyard or shared space, which creates a family-friendly vibe and a sense of tight-knit community. This type of townhome is quite popular in suburban areas where developers aim to balance density with cost-effectiveness. Below, you can see Park and Main Townhomes by Minto Communities, a stunning representation of back-to-back townhouses.

Freehold Townhouses

Now let’s discuss the ownership modes! Freehold townhouses offer one of the most advantageous ownership types. With this option, you own both the interior and exterior of the home, including the land it’s built on. 

Unlike condo townhouses, freehold townhouses don’t require monthly maintenance fees since there’s no shared ownership of amenities or common areas. This is a breakdown of the features of freehold townhouses:

• Ownership: The meaning freehold townhouse is that have full ownership of the house and land.
• Maintenance: You’re responsible for all maintenance, including the roof, driveway, and yard.
• Flexibility: No restrictions from condo boards, allowing you to renovate or decorate freely.
• Costs: While there are no monthly condo fees, costs for maintenance and repairs can add up.

We highly recommend freehold townhouses for families and individuals who value independence and long-term investment potential. These homes typically have higher resale value compared to condo townhouses due to their lack of shared costs or restrictions. Notable examples include Queen Street Towns by City Park Homes and The Coleraine Heights by Grand Brook Homes.

Condo (or Condominium) Townhouses

Condo townhouses add a modern twist to traditional structures. As part of a condominium corporation, you own the interior of your unit but share ownership of exterior elements and common areas, such as driveways or gardens. This style is ideal for those seeking low-maintenance living. Here are the main features of condo townhouses:

• Ownership: You own the interior of your unit but share responsibility for external areas.
• Maintenance Fees: Monthly fees cover maintenance of common areas, snow removal, and sometimes utilities.
• Restrictions: Rules set by the condo board may limit renovations or exterior changes.
• Amenities: Access to shared facilities like gyms, pools, or playgrounds.

Condo townhouses are popular in urban or densely populated areas where maintenance and amenities are prioritized over independence. We often recommend this type of townhome to first-time homebuyers, retirees, or anyone who prefers convenience and lower personal maintenance responsibilities. Skylands Townhomes is one of the top examples of condominium townhouses by Times Group in Richmond Hill.

Freehold Townhouses with Common Elements (Hybrid Ownership Models)

Freehold townhouses with common elements combine the benefits of freehold ownership with some features of condo living. You own your unit and land outright, but you also share responsibility for specific amenities or areas, such as private roads, parks, or recreational facilities, through a homeowners’ association (HOA). This is how it works:

• Ownership: Full ownership of the home and land.
• Shared Elements: Collective responsibility for shared spaces like driveways, parks, or snow removal.
• Maintenance Fees: Smaller fees compared to condos, covering only the common elements.

This hybrid model offers a great balance of independence and shared convenience. It’s ideal for buyers who value private ownership but appreciate well-maintained communal spaces. An excellent example is the Westshore Towns project by Minto Communities.

Urban vs. Suburban Townhouses

Another key feature of townhomes is their location. As you can guess, this type of accommodation places more emphasis on large spaces and privacy—features we usually associate with suburban living. However, you can definitely find townhomes in major cities too! It all boils down to your lifestyle, budget, and priorities. Let’s help you decide which fits your needs.

Urban Townhouses

Urban townhouses are typically located in the heart of cities, surrounded by amenities, public transportation, and entertainment options.

• Location: Positioned in densely populated areas with easy access to workplaces, shops, and cultural attractions.
• Design: Often narrower and taller to maximize space in high-demand areas. Some may include rooftop terraces instead of traditional backyards.
• Price: Generally more expensive due to their prime locations, but they can offer strong rental income potential.
• Convenience: Ideal for those who want a walkable lifestyle and shorter commutes.
• Space: Smaller lots and less outdoor space compared to suburban options.

Urban townhouses suit professionals, couples, or investors who prioritize proximity to city life over spaciousness. They save you long commutes and maximize comfort and accessibility.  Christie Towns, for example, is one of the most exceptional townhouses for sale in Toronto.

Suburban Townhouses

Suburban townhouses are found in residential neighbourhoods outside city centers. Naturally, they don’t offer the fast pace of city living, but they provide a quieter, more private lifestyle.

• Location: Situated in family-friendly areas with access to schools, parks, and larger lots.
• Design: Wider layouts, often with driveways, garages, and private backyards.
• Price: More affordable than urban townhouses, making them attractive to families and first-time buyers.
• Community: Typically located in planned developments with a strong sense of community.
• Commute: Longer travel times to city centers but less traffic congestion within the neighbourhood.

Suburban townhouses are perfect for families, retirees, or anyone seeking more space and tranquillity. You’ll find some of the nicest suburban townhomes in Toronto’s suburbs, such as Brampton, Vaughan, and Oakville. Eagle’s View Towns is a great example of a luxurious suburban townhome.

Key Considerations Before Purchasing a Townhouse

Now that you’re familiar with the different types of townhomes, it’s time to dive into the details and consider what truly matters when purchasing one. Whether you’re a homebuyer or an investor, these key factors can help you make an informed decision.

Lifestyle Compatibility

Home is where you feel comfortable and at ease, so it’s only natural to consider how well a townhouse aligns with your lifestyle. There are many pros and cons to each type of accommodation, but in the end, it all depends on your personal preferences and priorities. Here are a few questions you might want to answer before making a decision:

• Space Needs: Do you need a multi-floor layout, extra bedrooms, or a private yard? Townhouses are ideal for families or individuals needing more space than a condo but less than a detached home.
• Privacy: How much privacy vs. shared space are you comfortable with? Shared walls mean less privacy than a detached home, but end-unit townhomes can offer more seclusion.
• Location: Are you looking for an urban, walkable neighbourhood or a quieter suburban community? Each type of townhouse comes with unique benefits.
• Lifestyle: Do you enjoy low-maintenance living, or do you prefer the independence of handling your own property upkeep?
• Goals: What are your long-term plans? Whether you’re growing a family or working remotely, these factors play a role in your choice.

If you’re a first-time buyer or downsizing, townhouses provide a great balance of community living without breaking the bank.

Budget and Maintenance Costs

Budget is always a critical factor when buying a home. Townhomes are generally more affordable than detached homes, but you’ll need to account for both upfront and ongoing expenses. Here are the main costs to consider:

• Purchase Price: Urban townhomes tend to be pricier than suburban ones.
• Monthly Fees: Condo townhouses have maintenance fees for shared amenities, while freehold townhouses require you to cover all maintenance costs yourself.
• Property Taxes: These vary by location and the type of townhouse.
• Maintenance Costs: Freehold owners handle their own repairs, while condo owners share costs but are subject to fees.

Amenities and Community Features

Townhouses often come with amenities and community features that enhance their appeal. These can vary widely depending on the type of townhouse and its location. Here’s what to look for:

• Condo Townhouses: Shared facilities like pools, gyms, and playgrounds.
• Freehold Townhouses with Common Elements: Private roads, landscaped parks, or snow removal services.
• Location-Specific Features: Proximity to schools, transit, or shopping centers.

When considering community aspects, ask yourself these questions:

• Are you looking for a close-knit neighbourhood or a more private environment?
• Does the development prioritize safety, such as gated access or security patrols?
• Are there community events or homeowners’ association meetings that encourage social connections?

Rules and Regulations

Let’s dive into the legal aspects. Don’t worry, we’ll keep it simple. Here’s what to consider:

1. Review the By-Laws: Familiarize yourself with the community’s rules, such as restrictions on pets, parking, noise levels, and exterior modifications. 
2. Understand Shared Space Policies: Check how shared spaces like gardens, playgrounds, or parking areas are maintained and how maintenance fees are calculated.
3. Inspect the Parking Situation: Confirm the location and size of your designated parking space, especially if it’s in a shared garage. 
4. Obtain a Status Certificate (For Condo Townhouses): This document outlines the financial health of the condo corporation, any upcoming maintenance fee increases, and legal details. 
5. Check for Kitec Plumbing: If the property was built between 1995 and 2007, ask if Kitec plumbing is installed.
6. Home Inspection: Particularly for older freehold or condo townhouses, an inspection can uncover issues with critical systems like HVAC, plumbing, or electrical.
7. Exterior Modifications: Any changes to the unit’s exterior, such as painting or landscaping, typically need prior approval from the homeowner’s association.
8. Learn about Rental Rules: Some communities limit short-term rentals or require approval for leasing your unit to tenants.
9. Insurance Obligations: Owners are usually required to carry insurance covering personal property and liability, while the association covers common areas.
10. Alteration Approval: Renovations impacting plumbing, electrical, or structural elements often require both community and municipal approval.

Resale Value and Market Trends

The real estate market can be unpredictable. That being said, there are certain trends and indicators we use to assure our clients they are making the right investment:

1. National Market Trends: The average selling price of townhouses in Canada was $650,900 as of October 2024, reflecting a 2.3% year-over-year decrease.
2. Affordability Advantage: Townhouses are generally more affordable than detached homes, offering a “Goldilocks” solution for buyers seeking space without the price tag of a single-family home. 
3. Local Demand and Supply: In markets like Toronto and Vancouver, townhouse inventories are extremely low, with only one to two months of available supply. This limited inventory drives up demand and prices.
4. Stacked Townhouses: These are becoming increasingly popular, particularly in urban areas like the GTA. They bridge the gap between condos and row houses in terms of space and price.
5. Impact of Rising Costs: Higher mortgage rates and rapidly climbing prices may push some buyers toward smaller units, such as stacked townhouses or condos, instead of traditional townhouses.
6. Lifestyle Appeal: Townhouses often include communal amenities like parks and playgrounds, making them a versatile choice for families, first-time buyers, and downsizers.

Bottom Line

From freehold townhouses to stacked options, each type offers unique advantages for different lifestyles and budgets. At Platinum Condo Deals, our agents provide VIP access to pre-construction townhouses, including exclusive promotions and first-look pricing. Contact us today to secure your spot in the GTA’s hottest developments!