Hey everyone, it’s Shawn here, your go-to realtor from Portland, Oregon. If you’ve been browsing the real estate market, you might have come across terms like townhomes and condos, and wondered what really sets them apart. It’s a common point of confusion—even some agents mix them up! In this blog post, I’ll break it down as simply as possible, based on my experience in the Portland area. We’ll cover the basics, key features, HOA details, rental rules, and more. Let’s dive in.
The Fundamental Difference: Land Ownership
The easiest way to distinguish between a townhome and a condo boils down to one thing: land ownership.
- Townhomes: You own the land beneath your unit. If you check the county property tax records (like on PortlandMaps.com or county records), you’ll see a value assigned to the land. This is a big deal because it gives you more control and often ties into better long-term value.
- Condos: There’s no individual land ownership—the land is owned collectively by the HOA (Homeowners Association). On those same tax records, the land value will show up as zero.
This isn’t just a technicality; it affects everything from financing to resale value. Appearance-wise, they can look identical. Some condos are built to resemble townhomes, with attached units and shared walls.
Speaking of names, people use all sorts of terms interchangeably: townhouse, row house, attached house, or even attached single-family home.
Structural and Lifestyle Features
Townhomes and condos often share similar designs, but there are some typical traits that can help you spot the differences in practice.
- Shared Walls and Layout: Townhomes usually have shared walls with neighbors. If you’re in an end unit, you only share one wall, which means more privacy and less noise—end units often sell for a premium because of this. Middle units share walls on both sides.
- Yard Space: Many townhomes come with a backyard, often fenced in. It might be small, but it’s yours to enjoy or landscape. Condos, on the other hand, rarely offer private yards; outdoor space is typically communal, like shared patios or green areas. Except for Single family condos which is a new type of construction.
- Size Comparison: In general, townhomes are larger than condos. Just yesterday, I showed a client a condo and a townhome side by side. The condo was pricier, but the townhome offered more square footage and felt more spacious.
These features make townhomes feel more like a single-family home, while condos lean toward apartment-style living with added ownership perks.
HOA Fees: What You’re Paying For
HOAs are a hot topic in both, but they function differently.
- Condos: Expect higher HOA fees, often covering utilities like water, sewer, garbage, and even internet. In Portland, these can add up quickly. Always double-check what’s included—it’s not universal. The higher fees reflect more shared responsibilities, like building maintenance and amenities.
- Townhomes: Fees are typically lower, around $250 to $350 per month for exterior maintenance (think roof, siding, and the “shell” of the building). Utilities are usually on you. Interestingly, some townhomes don’t have an HOA at all! I’ve sold a few in areas like Aloha/Beaverton where owners voted to dissolve it. This can be a great deal since you avoid monthly fees, but it means coordinating with neighbors for big repairs like a new roof. That can get tricky, but it’s doable.
In my experience, the lower HOA in townhomes improves affordability, especially when compared to condos where fees inflate your monthly costs.
Rental Restrictions and Investment Potential
If you’re buying as an investment, this is crucial.
- Condos: About 95-99% have rental caps, limiting rentals to 20-30% of units in the building. The goal? Encourage owner-occupancy for better upkeep. But it makes condos less appealing to investors—if you buy one and can’t rent it out due to the cap, you’re stuck.
- Townhomes: Rental restrictions are rare; I haven’t seen any in my dealings and general in the Portland Metro Area. This flexibility makes them more investor-friendly and helps preserve value over time.
Overall, townhomes edge out condos for value retention because of fewer restrictions and lower fees. That said, they’re still more affordable than single-family homes without HOAs, even if the purchase price is higher—once you factor in those monthly fees, the math often evens out.
Final Thoughts: Which Is Right for You?
At the end of the day, the choice between a townhome and a condo depends on your lifestyle, budget, and goals. If you want more space, privacy, and ownership feel (including that land), go for a townhome. If you’re okay with higher fees for included perks and don’t mind potential rental limits, a condo might suit you better. Remember, this is all based on Oregon real estate—other states might categorize things differently. If you’re in the Portland market and have questions about buying, selling, or navigating these options, feel free to reach out. Give me a call at 503-515-4499, and let’s chat!
Thanks for reading! If this helped clarify things, share it with friends or family in the market. And if you’re on my YouTube channel, smash that like button and subscribe for more real estate tips. Shawn The Realtor Guy
Portland, Oregon
Shawn Realty 