For years, a single-family home behind a white picket fence stood as the symbol of the American dream, and for many, it still is. However, in recent years, more single families are leaning towards townhouses as they reevaluate their priorities. Townhouses are typically more affordable, which is a great deal in today’s economy, but they also come with other benefits, such as the convenience of lower maintenance. They’re also more likely to be closer to schools, parks, and essential services compared to standalone homes, building a sense of community. So if you’re looking to expand your portfolio, read the article below as we explore why townhouses appeal to single families.
Why Townhouses Appeal to Single Families?
Low-Maintenance
The most common reason families are opting for townhouses is that they’re more affordable, and we’re not just talking about the upfront price. Besides the purchase tag, maintenance is relatively low-maintenance compared to single houses, where everything is on you. In most instances, the HOA takes charge of common parts of the building, such as the roof and foundation, which means if there’s any need for repair or replacement, the HOA can handle it. This solution allows homeowners to share the cost of insurance, materials, and labor, which puts more money in your pocket long-term. In comparison, when you own a single-family unit, you have to undertake the burden of repair and maintenance on your own, which can be significantly costly.
Balance of Space
Aside from money, another reason townhouses are gaining popularity among single families is that they offer a balance of space. With vertical layouts and efficient floor plans, they’re perfect for families that are just starting out and need room to grow. That’s why it’s essential to know the difference between a townhouse vs apartment to assess if it aligns with your budget. Townhouses are more expensive but have a multi-level design that creates a clear separation between the living space below and private bedrooms above, allowing for privacy. In other words, you’re maximizing your square footage while having distinct zones in your house for work, play, and rest. This layout makes it perfect for big families, allowing them to create functional rooms without feeling cramped. If you have an extra floor, you can even sub-lease it for some extra cash.
Sense of Community
Single-family units are more likely to concentrate in the suburbs of most cities, making a sense of community a bit harder. With shared walls, families that live in townhouses are more likely to form stronger neighborly bonds because of the proximity of their homes and shared amenities. Townhouse developments are often designed with close-knit neighborhoods in mind. You can also partake in shared spaces such as playgrounds, pools, or clubhouses, which encourage social interaction between children and adults. For single families, this close-knit community can provide a sense of belonging and security that is often harder to find in a sprawling neighborhood with detached homes.
Top 3 Investment Advantages of Townhouses
Lower Upfront Costs
If you’re looking to expand your portfolio and invest in townhouses, cost is unlikely to be a major barrier. Compared to detached single-family units, townhouses in the same market tend to have a more accessible price point, making it easier for you to secure financing. A lower purchase price also means lower property taxes, but you should double-check local tax laws to confirm that’s a guaranteed positive before committing. Consult with a Texas property management team to determine if there are possible development trends in the area that may impact your investment. Aside from the initial capital, shared walls, roofing, and foundation often mean there’s less work to do, which can significantly cut your construction costs down and save you more money.
Consistent Demand Due to Affordability
Keep vacancy rates low by investing in a townhouse; after all, a lower purchase price often translates to lower and affordable rent. In other words, your monthly rental tag is more likely to accommodate a wider tax bracket, as opposed to single-family units that appeal mostly to the upper-middle and upper classes. Besides the financial aspect, townhouses also appeal to a wide range of tenants, from established families to young couples starting out. Empty nesters are also looking to downsize, or young professionals upgrading from their first apartment. There’s no shortage of tenants looking for townhouses because of their relative affordability, especially as home and rent prices continue to soar in this economy. That means few vacancies and tenant turnovers for you, allowing you to count on a consistent cash flow.
Higher Tenant Retention
Apart from its affordability, tenants are also more likely to renew their lease in a townhouse because of increased satisfaction. As we’ve highlighted above, there are several factors that can contribute to that. For starters, the community-oriented nature of many townhouses encourages renters to stay. Due to the bond families have formed with their neighbors, and desire to remain close to shared amenities like pools and playgrounds their kids love, they’re more likely to renew their lease. Another reason families stay is that as they grow in size, a multi-level layout allows each new addition to the family to enjoy their own space and privacy without making the house feel cramped. As a result, investors enjoy more stability and spend less on turnover costs through vacancy periods, or the added expense of cleaning and marketing.
Conclusion
Townhouses appeal to single families because they offer a practical blend between affordability and room to grow. Due to having shared building parts, they’re often low-maintenance, saving landlords and tenants more money in the long run. At the same time, their vertical and multi-level layout also gives families more rooms and better privacy, while encouraging a better sense of community through shared neighborhood amenities. Thus, investing in a townhouse is a wise decision for an investor. They’re more affordable and can boast of higher retention rates due to increased tenant satisfaction. That’s why in today’s real estate market, adding a townhouse to your portfolio would be a profitable decision.
