Building smaller homes has helped ease costs—and price points—for home builders in recent years. The notion of doing more with less has created a domino effect of creative floor plans and product types across various locations.
Townhomes, while in no way a new product, have stepped into the spotlight as a high-density option for high growth areas across the country. And home builders are taking note.
Chicago-based Lexington Homes has three Chicagoland townhome communities in the works. Principal Jeff Benach says home buyers’ chance at new-home construction is more achievable with townhomes because of the lower price tags. He points out that National Association of Home Builders (NAHB) data show that townhomes had the largest percentage of new construction starts in Q1 2025 since Q1 2008.
“The difference is that in 2008, home prices were crashing as compared with today, where home prices have increased too high. We are seeing that with any kind of economic jolt, the percentage of home buyers who still bought new homes brought their expectations and price point down,” Benach says.
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The Juniper is the largest of the models at Metro on Main, a community of 89 new townhomes in Morton Grove, Illinois, by Lexington Homes. An expansive gourmet kitchen includes multiple pantries and a large island with double-sided storage.
“Today, with such little inventory on the market, prices of new homes have increased to the point where single-family homes are now out of range for many. Even if buyers do not desire, or must buy a new construction home, that is often their only option as existing inventory is so anemic.”
In Texas, Bryan Havel, division president of Tri Pointe Homes Austin, says, “While townhomes are often associated with urban or infill development, we’re seeing strong opportunities in suburban areas like Georgetown. These locations offer more flexibility in land planning and allow us to integrate townhomes into larger master-planned communities with shared amenities, green space, and connectivity. It’s not just about density—it’s about smart growth that aligns with how people want to live.”
More With Less
Even with limited land, townhomes offer the opportunity to build more units in walkable, amenity-rich areas. Caroline Simmel, senior vice president of sales and marketing at Empire Communities, has found that the product’s popularity can also be attributed to a shift in what people want from their homes.
“Buyers are prioritizing location, walkability, and lifestyle. Townhomes are increasingly being found in mixed-use communities that offer easy access to dining, retail, and offices, allowing residents to live near the action without sacrificing space and comfort,” she says.
Empire, along with Toro Development Company, unveiled plans earlier this year for Medley in Johns Creek, Georgia, which will include 133 townhomes as part of a larger 43-acred mixed-use community.
Shaun McCutcheon, vice president, advisory, at Zonda, says “I heard a quote recently that ‘buyers want a townhome with a town.’”
All note that in addition to desirable locales, the low maintenance lifestyle is appealing to many home buyers who want less responsibility. Townhome community homeowner association fees often cover landscaping and maintenance of shared spaces like sidewalks and community alleys.
“Maintenance-free living saves townhome owners time, space, and money as they don’t need to invest or store landscape equipment,” Benach adds.
The benefits of walkable locations and low-maintenance living are probably why areas like Raleigh, North Carolina, have seen its attached product market share grow from 14% to 34% in the last decade, and from just 6% in 2015 to 30% in 2025 in Charlotte, McCutcheon says.
Largely due to affordability especially in these areas, he says, “New townhome product is often priced well below single family homes, appealing to first time buyers that cannot afford a new detached home. It is common for a new townhome in a given location to be priced under $400,000 while a similar single-family home would be priced at $500,000 or $600,000.”
The friendlier price and maintenance free living is especially desirable for singles (often women), couples, working professionals, and even retirees, McCutcheon adds.
Tri Pointe Homes
Tri Pointe Homes Austin’s first duplex offering, The Townhome Collection, offers four modern, low-maintenance two-story townhome designs.
Out With the Old
Simmel and Havel both say that people still think of townhomes as narrow, cookie cutter spaces with limited privacy, but that’s far from today’s reality.
At Tri Pointe’s first self-developed community with 191 single-family and 256 duplex townhome units in the Austin market, Havel says the townhomes at Park Central live more like single-family homes with open-concept living, modern finishes, covered outdoor spaces, and attached two-car garages. “They offer a high level of design and comfort—just with a smaller footprint and a simpler way of living,” he says.
With long-term livability in mind, Benach has seen an uptick in demand for townhomes with primary suites on the main floor, a nod to aging in place and the retirees that McCutheon mentions.
“Our floor plans can accommodate this, and generally this design can only be achieved with wider, front-load garage townhomes,” says Benach. These front-facing garages are very much like single-family homes, Benach says, but are much easier to lock up and leave for extended periods of times compared to single-family.
Additionally, the noise concerns of townhomes’ past are nearly silenced he says. “With the codes as they are in most parts of the country now, sound attenuation between units is so good that you generally cannot hear neighbors on either side,” he notes.
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Chicago-based Lexington Homes’ Metro on Main townhome exteriors feature an English elegance combined with modern architectural influences through a black-and-gray color scheme, stylish brick accents, gabled rooflines, and large six-pane windows for enhanced natural light.
What About Obstacles?
Townhomes seem to have perk after perk but do come with their own set of troubles, especially surrounding zoning. Benach, Havel, and Simmel agree that zoning can rear its ugly head despite the perfect piece of land existing.
“Zoning, which varies widely between municipalities, doesn’t always accommodate the ‘missing middle’ housing types that townhomes represent. In some areas, local codes still heavily favor detached single-family homes or multifamily buildings,” Simmel says.
Havel adds, “One of the biggest hurdles is navigating zoning and land use approvals, especially in areas where townhomes are less common. Some cities may not have zoning that easily accommodates attached product, or they may require additional steps for platting and review.”
A little creativity is sometimes involved, Benach says as more Chicago municipalities are requiring Affordable Requirements Ordinance (ARO) units as part of the mix. “They often want communities with less density, which might dictate a switch to front-loaded garage two-story homes versus rear-loaded garage three-story home designs.”
Yet, front-loaded garage townhomes can create aesthetic challenges thanks to the sea of garage doors. While Lexington Homes prefers three-story rear-loaded garage townhome designs, streetscapes must work to soften exteriors in certain circumstances.
Also on the construction side, Havel says, “Townhomes require careful coordination around shared walls, fire separation, and utility access—all of which differ from detached construction and can add complexity to both design and build.”
Will the Hype Subside?
Now the question is: will townhomes continue to skyrocket in popularity? Simmel thinks townhome construction will continue to increase especially in growing metros that may not have space for single-family homes. “As preferences shift toward convenience and connectivity, the demand for townhomes will likely outpace that for larger, more isolated housing types,” she says.
Yet, Benach sees the enthusiasm simmering down as home buying trends ebb and flow. He believes there will be yet another shift toward single-family development one hopeful day when interest rates are lower and prices can cool.
Havel, however, believes that while townhomes won’t ever replace single-family homes, they can be a growing part of a balanced product mix, particularly in his greater Austin market.
“Especially in desirable suburbs, we see strong demand for this type of housing. As buyers prioritize lifestyle, location, and value, townhomes allow us to meet those expectations in a way that’s both sustainable and scalable,” Havel concludes.
