Buying your first home can feel frustrating when the numbers don’t quite line up the way you hoped. You might feel ready to make a move, but finding a place that truly fits both your lifestyle and your budget is often the toughest part.

That’s where townhomes fit in.

Townhomes are becoming a bigger part of today’s housing supply, and that’s creating new opportunities for first-time buyers in a way we haven’t seen in years. They offer a more practical, budget-friendly way to step into homeownership without overextending yourself, especially in a market where affordability can still feel tight.

There Are More Townhomes To Choose From

Builders are constructing more townhomes than they have in decades. According to data from the National Association of Home Builders, nearly one in five new single-family homes being built today is a townhome the highest share on record.

A decade ago, townhomes were only about one in ten new construction homes.

That means today’s buyers have way more townhome options than they did before, and honestly, that’s a really good thing.

Townhomes are one of the easiest ways for first-time buyers to finally get their foot in the door. And with more of them available for sale, you might have more opportunities to jump into the market than you realize.

Here’s why they’re such a popular choice for buyers like you.

Townhomes Tend To Be More Affordable

Across the country, townhomes generally cost less than detached single-family homes, according to Redfin. That price difference has widened in recent years as more townhomes have come onto the market.

You might find a better deal on a townhome today for two main reasons.

Reason #1: Size

Townhomes tend to be smaller by design. Most modern ones are around 1,300 to 1,500 square feet, which helps keep purchase prices and monthly payments lower. Because they have a smaller footprint, they cost less to build, and that savings is passed on to buyers. Ali Wolf, Chief Economist at NewHomeSource, explains how this benefits buyers:

““With the high cost of housing across the country, townhomes have emerged as a vital, more accessible entry point into homeownership. They are often priced lower than detached houses, offering buyers – especially first-timers, young professionals, and those downsizing – the chance to build equity without breaking the bank.”
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— Wolf, Chief Economist at NewHomeSource

Reason #2: Builder Motivation

And here’s another advantage for you: with more inventory than in recent years, homebuilders are motivated to sell what they’ve already built.

Many sellers may be open to negotiating—whether that means being flexible on price, helping with closing costs, or including upgrades. According to the National Association of Realtors (NAR):

““. . . home builders say they’re ready to attract more first-time home buyers. They’re responding to affordability pressures through lower cost homes and builder incentives. About 40% of builders cut prices on newly built homes at the end of last year . . . Roughly two-thirds of builders also offered additional incentives, like mortgage rate buydowns.”
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— National Association of Realtors (NAR)