As an experienced real estate investment professional, Stuart Hansen has held leadership roles across multiple organizations, guiding teams involved in identifying and managing development opportunities in the United States. Drawing on his background in hotel operations and large scale project oversight, as well as his work with Marquee Asset Management, Shelter Asset Management, and Drewco Development, he offers insight into how various residential property types function in different markets. His career began in his family’s contracting business, later expanding into hotel management and investment after earning business degrees from the University of Western Ontario. These combined experiences provide a foundation for understanding how structures like townhouses fit into broader real estate strategies. This beginner’s guide outlines the defining features, benefits, and considerations associated with these multi level homes.
A Beginner’s Guide to Townhouses
A townhouse, also called a townhome, is a single-family unit with at least one or two floors and shares one or two walls with neighboring houses. Mostly tall and narrow, such houses sit in a row attached to other similar-looking houses and may have a small front or side lawn and backyard, usually smaller than those of standalone houses. Townhouses are common in suburban and urban locations.
Modern townhouses may incorporate features such as integrated garages, finished basements, or rooftop terraces to further utilize vertical space. They also often utilize narrow but deep floor plans, sometimes featuring open-plan layouts to improve flow.
Notably, three key features differentiate townhomes from other residential buildings: shared walls, private entrance, and multi-floor living. Shared, or party, walls link one unit to the next. This arrangement helps lower energy use for heating and cooling, as well as construction costs. Each townhouse also has its own entrance leading directly outdoors, either onto a street or a small exterior landing. With multi-floor living, living areas usually sit on the lower levels while bedrooms are on the upper floors.
Townhomes differ from condominiums, apartments, and detached single-family homes. A condominium is a privately-owned unit in a larger complex, with shared ownership of common spaces managed by an association. While a townhouse is a building style, a condominium is an ownership structure, meaning a townhouse can fall under a condominium association. Townhouse owners usually own the exterior and the land, while condominium owners only own the interior.
An apartment is typically a single-level unit within a larger building and is usually rented, while a townhouse is a multi-level unit owned by one resident or family. Compared with detached single-family homes, townhouses are more budget-friendly due to shared walls and smaller lots.
Among the benefits, owning a townhouse can be a cost-friendly and convenient option. They’re typically cheaper than detached homes due to smaller lots and shared structures, and they often come with less upkeep, especially when a homeowners’ association (HOA) handles some or all exterior maintenance. Shared walls also help keep energy bills low by improving heating and cooling efficiency.
Additionally, buying a townhouse lets owners build equity while often placing them near shops and services in walkable neighborhoods. They offer a mix of privacy, due to private entrances and multi-level layouts, and community, since neighbors sit close together. Their flexible design also makes it easy to adapt spaces for different needs, like a home office or an in-law suite.
There are, however, a few trade-offs. To begin, shared walls increase the potential for noise transmission from adjacent units, especially if the sound insulation is poor. Also, in some cases, residents may be required to join an HOA, mandating additional fees and enforcing rules. Additionally, the multi-level design can be challenging, since frequent stair use in a vertical layout may cause mobility or accessibility difficulties for seniors, young children, or individuals with physical limitations. The lack of ample outdoor areas and gardens may also be a concern for some.
Nonetheless, townhouses are ideal for some because they offer a practical blend of space, affordability, and convenience. For first-time buyers, they provide an accessible way to own property, offering adequate room and equity without the steep price of a detached home. Small families or remote workers appreciate the extra space that multi-level layouts provide, while retirees and those looking to downsize enjoy the low upkeep. Frequent travelers also benefit, as these homes are easy to maintain when one is away. Moreover, investors often see townhouses as solid opportunities for profitable rentals.
About Stuart Hansen
Stuart Hansen is a real estate professional with extensive experience in investment strategy and operational management. He serves in leadership capacities with Marquee Asset Management, Shelter Asset Management, and Drewco Development, where he contributes to identifying and developing residential and commercial opportunities. His background includes early exposure to construction through his family’s contracting business and significant experience in hotel management with the Clarion organization. He holds both HBA and MBA degrees from the University of Western Ontario, where he received multiple academic honors.
