Thinking about buying your first home in 2025? You’re not alone—and you’re definitely not the only one feeling the pressure.
With soaring home prices, limited inventory, and rising mortgage rates, today’s housing market feels like an uphill battle for first-time buyers. The traditional single-family home? For many, it’s just out of reach.
But there’s a new favorite in town: the townhouse.
More affordable, easier to maintain, and often located in vibrant, walkable neighborhoods, townhouses are quickly becoming the smart (and stylish) choice for new homeowners.
In this post, we’ll break down exactly why first-time buyers are ditching the white-picket-fence dream and saying yes to townhouses in 2025.
Affordability in a Competitive Market
Let’s be real—buying your first home in 2025 isn’t cheap. Prices are up, mortgage rates are higher than they’ve been in years, and competition for single-family homes is fierce.
For many first-time buyers, that dream house with the big backyard is starting to feel more like a fantasy than a real option. That’s where townhouses come in—and they’re changing the game.
On average, townhouses cost significantly less than detached single-family homes in the same area. Not only is the purchase price lower, but property taxes and utility bills are typically cheaper too, thanks to smaller lot sizes and shared walls that improve energy efficiency.
Let’s break it down:
| Feature | Townhouse | Single-Family Home |
|---|---|---|
| Average Price | $300,000 | $400,000+ |
| Property Taxes (Annually) | $3,000–$4,000 | $5,000+ |
| Monthly Utilities | Lower (shared walls) | Higher (more square footage) |
The figures above are estimates, every town is different. For example in Wethersfield the median price for a single family home for February 2025 was $425,000, while a condo was $320,000.
As you can see the numbers above are not that off. You'll probably end up paying more than $100,000 for a single family home as suppose to a condo or townhouse.
Going back to Wethersfield currently there is a townhouse for sale for $299,900. It has 2 beds and 2 baths and nearly 1300 sqft. Property taxes are $5,000. Looking at the photos it is completely renovated!
Currently the least expensive single family home I can find in Wethersfield that is renovated is listed for $499,900. It is an older home (built in 1918), it has 5 beds and 3 baths and a little over 1500 sqft. Taxes are nearly $7,000.
These differences add up—especially for buyers putting down roots for the first time. Choosing a townhouse can mean a lower down payment, smaller monthly mortgage, and room in your budget to actually enjoy your new home.
In a market where every dollar counts, affordability isn't just a perk—it’s power.
Lower Maintenance, More Convenience
Let’s face it—first-time buyers already have enough on their plates. Between securing financing, learning the ropes of homeownership, and managing everyday life, the last thing most want is a laundry list of maintenance tasks that come with owning a traditional single-family home.
That’s where townhouses shine.
Townhouses are designed with low-maintenance living in mind. Unlike single-family homes—where you're responsible for everything from lawn care to exterior repairs—many townhouses come with HOAs (Homeowners Associations) that cover those time-consuming chores.
That means no mowing the lawn in July, no shoveling snow at 6 AM, and no worrying about replacing the roof next spring. This does come at an added cost.
For example, that Wethersfield townhouse I mentioned earlier has a monthly HOA fee of $264. That's about $100 more than the added cost of taxes if you were to buy the single family home.
However an extra $200,000 more, which happens to be the price difference between the townhouse and single family home would run you over $1,000 more a month depending on your interest rate!
Plus, with shared walls and more compact footprints, townhouses are often newer builds with modern systems (think efficient HVAC, up-to-date plumbing, and energy-saving windows), which means fewer unexpected repair costs for first-time buyers.
So as I mentioned the single family home above was built in 1918. The townhouse was built in 1984. So still over 40 years old, but the house is over 100 in comparison.😮
The result?
You get to enjoy the perks of homeownership—privacy, space, and equity—without the stress of full-scale property upkeep. Just think if you didn't want to mow the lawn, hiring someone could cost you hundreds a month away!
And let’s not forget location. Townhouses are often found in walkable, amenity-rich neighborhoods close to shopping, schools, and public transit—making everyday living more convenient and connected.
Location & Lifestyle Perks
For many first-time buyers, homeownership isn’t just about the property—it’s about the lifestyle. And when it comes to convenience, townhouses often have the upper hand.
Unlike single-family homes, which are typically found in suburban or rural settings, townhouses are often built in prime locations—closer to city centers, shopping districts, and public transportation. This means:
✅ Shorter commutes to work and entertainment
✅ Walkability to restaurants, coffee shops, and parks
✅ Easy access to public transit, reducing the need for multiple cars
Many modern townhouse developments also include built-in amenities that single-family homes don’t offer—such as community pools, fitness centers, and shared green spaces.
This creates a neighborhood feel that’s perfect for socializing and building a sense of community.
And let’s not forget security. With neighbors in close proximity and gated communities becoming more common, townhouses can offer an extra layer of safety, giving first-time buyers peace of mind in their investment.
Townhouses offer the best of both worlds: the benefits of homeownership without sacrificing the urban conveniences and lifestyle perks that many buyers love.
Strong Investment Potential
Buying a home isn’t just about finding a place to live—it’s also about building long-term wealth. And for first-time buyers, townhouses offer an attractive investment opportunity that’s often overlooked.
📈 Appreciation & Market Demand
The demand for affordable housing options is at an all-time high. With single-family homes becoming increasingly out of reach, more buyers and renters are turning to townhouses as a cost-effective alternative.
This growing demand boosts resale value, making townhouses a smart long-term investment.
🏠 Easier to Rent Out
If you ever decide to move or upgrade, a townhouse can easily be turned into a rental property, generating passive income. With their prime locations and lower maintenance needs, townhouses attract renters who want the perks of a home without the upkeep of a single-family house.
💰 Lower Cost, Higher ROI
Compared to single-family homes, townhouses come with:
✔ Lower upfront costs (smaller down payments, lower purchase prices)
✔ Lower maintenance expenses (HOA often covers exterior upkeep)
✔ Competitive rental income potential
This combination allows first-time buyers to enter the market at a lower cost while still gaining equity and financial growth over time.
The Bottom Line
A townhouse isn’t just a place to live—it’s a strategic investment in your future. Whether you stay long-term or use it as a stepping stone to your next home, townhouses provide the perfect balance of affordability, appreciation, and rental potential.
The Final Verdict: Is a Townhouse Right for You?
Deciding on your first home is a significant milestone, and choosing between a townhouse and a single-family home depends on various personal factors.
Let's summarize the key considerations to help you determine if a townhouse aligns with your needs:
Affordability: Townhouses often come with a lower purchase price and reduced property taxes compared to single-family homes. As I discussed with my Wethersfield example.
Maintenance: With many townhouses, homeowners' associations (HOAs) handle exterior maintenance, landscaping, and common area upkeep. This arrangement is ideal for those who prefer a low-maintenance lifestyle.
Location and Lifestyle: Townhouses are often situated in urban or suburban areas, offering proximity to city centers, public transportation, and amenities. This setup appeals to individuals seeking convenience and an active community environment.
Investment Potential: The growing demand for affordable housing options enhances the resale value of townhouses. Additionally, their appeal to renters can provide potential rental income if you decide to lease the property in the future.
I have had many friends and family, who rented out their townhouse or condo, when they went to purchase their first home.
Considerations:
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Space and Privacy: Townhouses typically share walls with neighbors, which might affect privacy and noise levels. They may also offer less outdoor space compared to single-family homes.
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HOA Fees and Regulations: While HOAs provide maintenance benefits, they also require monthly fees and adherence to community rules, which may limit certain personalizations of your property.
Conclusion:
If you prioritize affordability, minimal maintenance, and a location that offers convenience and community amenities, a townhouse could be an excellent choice for your first home.
However, it's essential to weigh these benefits against your preferences for space, privacy, and autonomy. Assess your lifestyle needs, financial situation, and long-term goals to make an informed decision that best suits your path to homeownership.
If you want to learn more about townhouses, or anything else regarding real estate, please feel free to reach out to me. What are your thoughts, given the real estate market now?
Would you consider a townhouse of a single family house? Let your voice be heard, drop a comment.
