Published April 22, 2025.
Written by Stephanie Malki.

Buying your first home in today’s competitive market can feel like a challenge. With home prices and mortgage rates impacting affordability, many buyers are making one simple trade-off to get into homeownership faster: square footage.

According to the National Association of Home Builders (NAHB), 35% of buyers are open to purchasing a smaller home to make homeownership happen. One place where you can often find a smaller footprint—and sometimes better affordability—is in townhomes.

Why Townhomes Are Gaining Popularity

Townhomes generally cost less than single-family homes, making them an attractive option for first-time buyers on a budget. As Realtor.com explains:

“Affordability remains a key priority for homebuyers, making townhomes an attractive option because they are often priced more reasonably than single-family homes. It makes them especially appealing to first-time homebuyers on a tighter budget . . .”

If rising prices have made homeownership feel out of reach, considering a townhome could be a smart way to step into the market without maxing out your budget.

Builders Are Responding to Demand

As demand for smaller, more affordable homes grows, builders are stepping up to meet the need. Joel Berner, Senior Economist at Realtor.com, states:

“Builders are making a concerted effort to provide smaller, more affordable inventory to the market in a way that the existing-home market cannot. Townhomes are a significant portion of that effort.”

This means there are more townhome options available now than in previous years. If you’re in the market for a new home, this expanding inventory could provide you with more choices and a better chance of finding an affordable option.

Is a Townhome Right for You?

If you've been focused solely on detached single-family homes, it may be worth exploring townhomes. They often cost less, require less maintenance, and provide a strong sense of community. The National Association of Realtors (NAR) notes:

“Townhomes tend to cost less than single-family detached homes and can be appealing to young professionals who may desire medium-density, walkable neighborhoods.”

Townhomes offer several benefits:

Lower maintenance compared to single-family homes
Community atmosphere with shared amenities
Affordability for first-time buyers
Walkable locations often near shopping, dining, and entertainment

Of course, townhomes come with considerations, such as shared walls and potential HOA fees. If you’re used to apartment living, the transition might be seamless, but it’s still important to weigh the pros and cons.

If you're struggling to find a home within your budget, it may be time to expand your search to include townhomes. A little flexibility on space can open the door to homeownership sooner than you think.

What matters most to you—space, location, or budget?

Let’s discuss where you can adjust to make homeownership happen. Connect with us today to explore your options! Give us a holler and let’s chat! 📲 (626) 914-6637!