Townhouses vs. Apartments: What's the Difference?

If you’re trying to decide between renting a townhouse vs. an apartment, the two options may look similar at first, but they differ in cost, space, privacy, and amenities. Townhouses usually feel more like single-family homes with multiple stories and extra room, while apartments are typically more affordable and centrally located.

To help make that decision easier, we’ve put together this guide outlining all the key comparisons between apartments and townhouses—including their costs, features, pros, and cons. By taking some time to familiarize yourself with these living arrangements, you can discover which one offers more of what is important to your rental journey.

What Is a Townhouse?

A townhouse, or townhome apartment, is a single-family dwelling that shares a wall with another house and has at least two stories. Townhouses have been around for centuries, often found in towns and residential areas a bit outside of city centers.

People often overlook these units in favor of single-family homes or modern condos. However, we’re beginning to see a resurgence in the marketplace with a demand for convenient, low-maintenance housing.

Who Is a Townhome Ideal for?

Renting a townhome can be a practical, affordable option for many renters. Whether you're looking for more amenities, downsizing, just starting out, or in between homes while on an extended work assignment, a townhome may be a good fit for your needs. People who might find a townhouse ideal include:

• Renters who want more amenities have access to features like garages, patios, or small yards.
• Those downsizing, moving from a larger single-family home but still wanting space.
• First-time renters or those just starting out, looking for more privacy than an apartment offers.
• People in transition, such as being in between homes or on an extended work assignment.
• Budget-conscious renters, who want more square footage in the same price range as some apartments.

People who value their privacy and have an eye on their budget might want to rent a townhome instead of getting an apartment. In some locations, it's even possible to get more space in the same general price range.

What Is the Difference Between a Townhouse and an Apartment?

There are some critical differences between townhouses and apartments that may impact your rental experience.

• Landlords: Owners usually are the ones who rent out townhomes, while property management companies usually rent out apartments.
• HOA fees: Apartments are rental units, while townhome communities rely on HOA fees to fix standard amenities.
• Layouts: Townhouses also offer layouts similar to single-family homes.
• Stories: Townhouses have multiple stories and larger layouts.
• Prices: With bigger floor plans in townhouses, they are usually more expensive than cozy, one-story apartments.

Now you see that townhouses and apartments both offer unique rental experiences. Use these differences to weigh the pros and cons of renting one of these properties.

How Are Townhouses and Apartments Similar?

Here’s a side-by-side look at the main differences between townhouses and apartments:

Both townhouses and apartments come with clear trade-offs. Townhouses usually offer more space, privacy, and home-like layouts, while apartments tend to be more affordable and closer to urban conveniences. The right choice depends on whether your priority is extra room and amenities or a lower price in a central location.

What Are the Pros and Cons of Renting a Townhouse?

Before making your final decision, make sure you understand the pros and cons of townhouses.

Pro #1: More Space

Townhouses are ideal for expanding your space without committing to a single-family home. It's common to find garages, balconies, patios, and small yards in townhouse communities.

Pro #2: Cheaper than Buying a Single-Family Home

Housing shortages and skyrocketing price tags make it challenging to transition from apartment renter to townhouse owner. It's usually less expensive to rent or buy a townhouse than a single-family home.

Pro #3: Amenities

Townhouses are typically part of a large development and they often have great amenities. Essentially, you get the best of both worlds with a townhouse. For example, apartment complexes with townhomes often feature fitness centers, swimming pools, and other upscale features.

Con #1: Privacy

Townhouses are typically more private than apartments. However, they’re less private than single-family homes. Shared walls, yards, and amenities are the norm.

Con #2: Location

While some townhouse communities are found within cities, most are in suburban settings. It's easy to find condos and apartments in the middle of downtown and dense urban areas.

Con #3: HOA Fees are Standard

A townhouse development relies on HOA fees for landscaping and maintenance. However, having an HOA also means you’ll need to follow specific rules. That bright coat of purple paint around your home’s exterior that you’ve always dreamt of may not be a possibility!

How Do You Find a Townhouse?

Finding a townhouse isn’t too difficult if you know where to start! Here are some steps to help you find the townhouse of your dreams.

What Is Your Budget?

Apartment budgeting requires taking a hard look at your finances to determine what you can afford to pay in rent. You can use our rent calculator for budgeting assistance! However, the best way to ensure you come up with an accurate budget is to monitor your income and spending via budgeting apps.

If you prefer to calculate the numbers yourself, you can create a budget using the 30% rule. This rule states that you should spend no more than 30% of your monthly pre-tax income on rent.

What Are Your Apartment Priorities?

When looking for a townhouse, try to find one that meets all your preferences. In doing so, you can narrow your choices during your search and close in on the townhouse of your dreams.

If your must-have apartment amenities include an on-site gym and sauna, then be sure to put that on your list. You may not find exactly what you’re looking for, though being preferential can be an excellent jumping-off point.

What Is Your Commute Time?

Commute time is a significant consideration for many renters. No one wants to slog through a two-hour commute twice a day. However, there is a class of super-commuters who do this daily!

Consider your commute time and transportation method when choosing a townhouse. Aim for a shorter, more simple commute whenever possible unless you’re a remote worker. In that case, try to find a townhouse in one of the best cities for remote workers.

How Should You Prepare for Townhouse Tours?

When touring a townhouse, there are many questions you should ask. For starters, ask about your prospective neighbors.

If you have concerns about noises such as dogs barking, babies crying, loud music playing, or anything else that may warrant a noise complaint, it’s best to ask about these issues upfront.

How Do You Apply for a Townhouse?

The apartment application process can differ depending on your landlord's or property manager’s practices.

In addition to completing the application, you’ll need to provide information confirming your identity, income, job, rental history, and consent to a background or credit check.

The landlord will likely ask you to provide references as well.

How Do You Find a Cheap Townhouse?

Because townhouses are generally located in the heart of major cities near many amenities, they can be very competitive and often expensive. However, there are instances where you can find an affordable unit situated in a desirable neighborhood.

That said, if you are looking during the right time of year and catch a move-in special, you may be able to save big on rent or snag a free month.

If your priority is saving money and you don’t mind sharing your space, then a roommate is the way to go. If you split rent with a roommate, you’ll only be responsible for paying half the cost of rent.

When’s the Best Time to Rent a Townhouse?

The best time to rent an apartment depends on your needs and preferences. If you are searching for an affordable unit, it’s best to start your search during December and January. During these winter months, when moving rates are down, rent rates are at their lowest.

If price is less of a concern and you prefer to browse the most options, then start your hunt in the summer months.

How Do You Protect Yourself from Rental Scams?

Rental scams are expensive, costing unwitting renters $5.2 million per year. Worse yet, a third of renters who fall prey to rental fraud lose over $1,000 to the scheme.

That’s why it’s essential to know how to spot and avoid rental scams, as these skills will help ensure you don’t fall prey to fraudsters.

Which Is Better for You? A Townhouse or an Apartment?

The better choice between a townhouse and an apartment depends on your priorities and lifestyle. A townhouse is ideal if you want extra space, multiple stories, and a quieter, suburban setting with added amenities like garages or small yards. An apartment is often the better fit if you value affordability, low maintenance, and a central location close to work, nightlife, and public transit.

Either way, when you're ready to find your new home, we can help find your next apartment. Start our personalized quiz and save yourself 50 hours of searching.

FAQs About Townhouses vs. Apartments

Is a townhouse cheaper than an apartment?

No, townhouses are usually more expensive than apartments because they offer more space, multiple stories, and sometimes private outdoor areas. Apartments are typically the more affordable option.

Do townhouses always have HOA fees?

Yes, most townhouses come with HOA fees that cover maintenance, landscaping, and shared amenities, while apartments rarely require them. However, your landlord will likely just roll it into your monthly rent.

Are townhouses good for families?

Yes, townhouses are a good choice for families because they provide multiple bedrooms, more privacy, and extra features like garages or small yards. Some townhomes even have playgrounds.

Which has better amenities: townhouses or apartments?

Apartments usually have better shared amenities such as pools, gyms, and lounges. Townhouses may include private perks like garages, patios, or yards.

Are apartments or townhouses better for city living?

Apartments are better for city living because they are typically located in central areas close to jobs, restaurants, and public transit. Townhouses are more common in suburban neighborhoods.

How do I choose between renting a townhouse or an apartment?

You should choose a townhouse if you want more space and privacy. Pick an apartment if you prefer affordability, low maintenance, and a central location.