Buying your first home in today’s market can be challenging, with high prices and mortgage rates making affordability a hurdle. But some buyers are getting into homes faster by making one simple compromise—opting for less square footage.

 

The National Association of Home Builders (NAHB) says that 35% of buyers are open to purchasing a smaller home to make homeownership a reality. One great option for a smaller footprint—and often better affordability—is a townhome. 

 

Townhomes are usually more affordable than single-family homes since they tend to be smaller—and that’s a big win for budget-conscious buyers. As Realtor.com puts it:

 

"In today's market, 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 you’re feeling stuck trying to buy a home because of rising prices, looking at townhomes could be a smart way to become a homeowner without stretching your budget too far.

 

Builders are noticing that more buyers are looking for smaller homes, and they’re adjusting to keep up with the demand. As Joel Berner, Senior Economist at Realtor.com, puts it:

 

"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."

And the data proves it. According to Realtor.com, townhomes now make up a larger share of new construction listings than they did just a couple of years ago (see the graph below): 

 

 

So, if you’re considering a townhome, you’ve got more options now than in the past few years. And having more choices—especially ones that are often more affordable—is definitely a win. It could make finding your first home a little easier!

 

If you’ve been eyeing more traditional homes with their own yards, a real estate agent can help you explore if a townhome might be a good fit. You might end up loving the lifestyle—it’s a popular choice for many people. As the National Association of Realtors (NAR) explains:

 

“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 are lower maintenance, offer a sense of community with neighbors, and often come with their own unique amenities. Plus, they give you the opportunity to start building wealth through homeownership without the hassle of maintaining a detached single-family home. That’s especially appealing for first-time buyers who might be a bit concerned about all the upkeep.

 

Townhomes also come with a few things to consider, like potential noise from shared walls. If you’re renting now, you might already be used to that. But these are the kind of factors you’ll want to think about. That’s where an agent’s expertise really helps—they can guide you through the pros and cons so you can see how a townhome fits with your lifestyle and long-term goals before making a decision.

 

 

If you’re having trouble finding a home within your budget, it might be a good idea to broaden your search and consider options you haven’t thought about before, like townhomes. Sometimes, giving up a little space is totally worth it to get your foot in the door.

 

What’s most important to you—space, location, or budget? Let’s figure out where you can be flexible to make homeownership a reality.