Skip to main content
Fulltext search
FILTER RESULTS BY:
RECOMMENDED IN RENT
Moving to NYC after college? Here's how to find a rental apartment
RECOMMENDED IN BUY
How buying real estate in NYC is unlike anywhere else
RECOMMENDED IN SELL
A guide to using a no-fee renovation loan from a NYC real estate firm
RECOMMENDED IN IMPROVE
How to make your NYC renovation more pet-friendly
BEST REAL ESTATE WEBSITE!
National Association of Real Estate Editors
BEST REAL ESTATE WEBSITE! National Association of Real Estate Editors
Brick Underground
Social Links
follow:
  • Facebook
  • Twitter
  • Instagram
  • Flipboard
  • search
Brick Underground
☰ Brick Underground
Brick Underground
Brick Underground
☰
Brick Underground
  • Buy
    • Buy
    • The Market
    • Investing
    • New Construction + Condos
    • Affordable Housing
    • Co-ops
    • Negotiating + Financing
    • How to Buy in NYC Guide
    New condos in Manhattan
    Investing
    Rise of all-cash deals in NYC reshapes the real estate market
    139 East 23rd St. #8, a floor-through two-bedroom boutique condo in Kips Bay
    New Construction + Condos
    What you need to know about buying a NYC apartment with direct elevator access
    empty nesters in modern kitchen
    Rent
    Empty nester checklist: What to consider if you are buying or renting in NYC
  • Rent
    • Rent
    • Affordable Housing
    • Roommates + Landlords
    • The Market
    • The Search
    • How to Rent in NYC Guide
    Apartment buildings on MacDougal Street in Greenwich Village
    Affordable Housing
    Cuomo’s attack on Mamdani’s $2,300 apartment brings rent stabilization into the spotlight
    Woman walking down street in Jackson Heights
    Roommates + Landlords
    Ask Altagracia: Can my landlord refuse a lease assignment if I need to break my lease?
    Sponsored By Outerbridge Law P.C.
    chinatown in lower manhattan
    The Market
    Manhattan median rent hit $4,700 in July, the fifth record in six months
  • Sell
    • Sell
    • Staging + Open Houses
    • Negotiations + Closings
    • Getting Ready
    • How to Sell in NYC Guide
    Aerial view of downtown Brooklyn
    Sell
    Median sales price in Brooklyn climbs to $995,000 in the second quarter
    Downtown New York City
    Sell
    Manhattan deals rose to highest level in nearly two years, defying national trends
    Modern residential buildings in Chelsea, Manhattan
    Negotiations + Closings
    What is a post-closing possession agreement and what are the risks for buyers and sellers?
  • Live
    • Live
    • Neighbors
    • Kids + Pets
    • Neighborhood Intel
    • Products + Test-drives
    • Troubleshooting
    FlatRate moving brick underground
    Live
    How to troubleshoot your move in advance
    Sponsored By flatrate
    Apartment buildings in Lower Manhattan
    Renovation
    What repairs are co-op and condo owners responsible for, and what do buildings take care of?
    Big Apple Moving stackable eco-friendly bins
    Products + Test-drives
    Do I have to use cardboard boxes when moving in NYC? Are there any green alternatives?
    Sponsored By Big Apple Moving
  • Improve
    • Improve
    • Small Spaces
    • Small Projects + DIY
    • Renovations
    • Design + Architecture
    • Products + Services
    • How to Renovate in NYC Guide
    insurance adjuster inspecting mold
    Products + Services
    How to tell if your apartment has mold—and how to get rid of it
    Woman on the phone to a plumber about a leaking sink
    Small Projects + DIY
    Here's what I learned to get our absentee landlord to fix things fast
    Apartment buildings in Lower Manhattan
    Renovation
    What repairs are co-op and condo owners responsible for, and what do buildings take care of?
  • Boards & Buildings
    • Boards & Buildings
    • Boards
    • Finance
    • Insurance
    • Legal
    • Property Management
    • Structure & Systems
    • Sustainability
    Burned and Boarded Up Windows
    When should your board hire a public adjuster?
    Manhattan GM
    What should we consider when renewing insurance for our building?
    Facade of NYC buildings
    How much is insurance on a NYC co-op or condo building?
  • Advertise
    • Advertise with us
    • Sponsored Content
    • Experts
    FlatRate moving brick underground
    Live
    How to troubleshoot your move in advance
    Sponsored By flatrate
    14th Street in Chelsea, Manhattan
    Roommates + Landlords
    Ask Altagracia: My landlord denies offering a rent reduction during a renovation. Can I still pay a lower rent?
    Sponsored By Outerbridge Law P.C.
    Big Apple Moving stackable eco-friendly bins
    Products + Test-drives
    Do I have to use cardboard boxes when moving in NYC? Are there any green alternatives?
    Sponsored By Big Apple Moving
  • Brick Report
  • About Us
  • About Us
Email Address
Fulltext search
FILTER RESULTS BY:
New Main menu
  • Buy
    • Buy
    • The Market
    • Investing
    • New Construction + Condos
    • Affordable Housing
    • Co-ops
    • Negotiating + Financing
    • How to Buy in NYC Guide
  • Rent
    • Rent
    • Affordable Housing
    • Roommates + Landlords
    • The Market
    • The Search
    • How to Rent in NYC Guide
  • Sell
    • Sell
    • Staging + Open Houses
    • Negotiations + Closings
    • Getting Ready
    • How to Sell in NYC Guide
  • Live
    • Live
    • Neighbors
    • Kids + Pets
    • Neighborhood Intel
    • Products + Test-drives
    • Troubleshooting
  • Improve
    • Improve
    • Small Spaces
    • Small Projects + DIY
    • Renovations
    • Design + Architecture
    • Products + Services
    • How to Renovate in NYC Guide
  • Boards & Buildings
    • Boards & Buildings
    • Boards
    • Finance
    • Insurance
    • Legal
    • Property Management
    • Structure & Systems
    • Sustainability
  • Advertise
    • Advertise with us
    • Sponsored Content
    • Experts
  • Brick Report
  • About Us
    • About Us
    • Advertise
  • About Us
SUBSCRIBE TO OUR NEWSLETTER →
Social Links Footer
  • Facebook
  • Twitter
  • Instagram
  • Search
Buy [ SPONSORED ]

Condos vs. townhouses: Prices, carrying costs, resale values, and other considerations for New York buyers

By Corcoran  | January 2, 2020 - 12:00PM
image

In 2019, the average condo sold for under $3 million, while the average townhouse sold for $9.8 million. 

iStock

SHARE:
Share to Facebook
Share to Twitter
Print
More...

Trying to decide between buying a condo or a townhouse? You may have a sense of which one you prefer in the abstract. Typically laid out in one convenient level, condos are great if you prefer to avoid stairs and don’t mind living with neighbors above and below. Condo buildings usually come with amenities, and tend to be located in the midst of a bustling area, with shops, restaurants, and businesses nearby (sometimes on the ground floor, even).

Townhouses, meanwhile, offer a more hybridized experience combining the perks of a single-family home with those of community living. They tend to have more square footage than a condo, multiple floors, and private outdoor space. Townhouse neighborhoods sit on more land and thus may be further away from commercial districts, but they have more of a neighborly feel.

Of course, you wouldn’t make the decision without considering price variables—and the factors driving prices associated with condos and townhouses are quite different. “Every buyer has their own specific needs, and every block and building is different,” says Oliver Brown, a broker with Corcoran’s East Side office.

Below, a comparison of the different factors driving costs for condos and townhouses.

Sales price vs. price per square foot

Generally, expect to pay more for a townhouse than a condo, for a couple of reasons: Townhouses tend to be larger, and at the highest end of the market, there are one-of-a-kind townhouses that go for $80 million or more, driving up averages.

According to data provided by Corcoran, in 2019 the average condo sold for just under $3 million, and was 1,400 square feet, while the average townhouse sold for $9.8 million and was 5,200 square feet. Though buyers spent more to buy a townhouse, the average price per square foot was nearly identical: $1,807 for condos, and $1,831 for townhouses.

A number of variables can drive prices higher or lower than average.

“It’s hard to generalize,” Brown says. “It depends on finishes, location, beauty, and other factors. Rarity drives up costs as well. You’ll pay a premium for a penthouse condo in a prominent building, or a townhouse on a particularly desirable block.”

By way of example, Brown cites two recent sales that flip the average narrative: A seven-room, 4,500-square-foot Lenox Hill condo at 838 Fifth Ave. that went for $27 million, or $6,000 per square foot; and a nine-room, 7,000-square-foot townhouse on the Upper East Side that sold for $23 million, or about $3,400 per square foot.

Carrying costs and taxes

Here’s where prices really start to differ between townhouses and condos.

Property taxes are determined by a number of different assessments, including square footage, number of rooms, acreage, and comparable homes nearby. When considering taxes, it’s useful to remember the categorical differences between condos and townhouses: With the former, you only own (and thus only pay taxes on) the inside of your apartment and an undivided interest in the building’s common elements, whereas if you buy a townhouse, you’re responsible for the whole shebang, including all of the taxes on the land outside and beneath your home.

While you may pay more in taxes for a townhouse than a condo, the numbers even out once you consider common charges you’ll pay in a condo—that is, the shared expenses for operating the building, which are not included with property taxes for condos (unlike with co-ops).

In Brown's example, he says taxes for the townhouse were $10,000 per month, compared to $9,000 for the condo plus an additional $12,000 in monthly common charges. Those common charges go toward building maintenance and support staff, like the doorman, porter, security, dry cleaning pickup and drop off, garbage collection, package and luggage storage, gym staff, and so on.

Operational costs are lower for townhouses, because you’re not paying salaries. It’s cheaper to pick and choose services à la carte, but it can be more of a headache.

“Doorman and elevator men and porters and supers and cleaning people are paid well. They’re union,” Brown says. “Whereas for a house, it’s per-service and/or hourly. Everyone does their own thing.”

That manifests as different lifestyles between townhouse and condo living, which—with negligible cost differences in the end—is really the question to ask yourself when choosing between the two. Do you want the convenience and security of a condo, or the personality and privacy of a townhouse?

In a house, you can hire your own staff, if you’d like—a nanny, a cook, a driver. Or you don’t have to hire anyone. Let’s say you or someone who lives in the home likes to garden; that means you don’t need a gardener. Maybe you have a friendly elderly or self-employed neighbor who can pick up packages for you; voila, no need for a courier. But some people prefer the ease of paying a flat fee for all services and operational costs without the hassle.

“You don’t have the same carrying charges for a house, but you have to deal with all these things—heating, cooling, security, sidewalk cleanup, having no super in the basement if something breaks,” Brown says.

There are tradeoffs everywhere: condos may seem safer because of 24/7 security at the door, but they have far more people coming in and out than a townhouse. In a condo, there’s always someone on-site to deal with anything that goes wrong; you don’t get that perk in a townhouse without paying a premium for it, but that’s also an opportunity to save. 

If you’re buying a townhouse but you still want the lock-and-leave convenience of a condo, a good broker will connect you to a management company that can organize and take care of all services and maintenance. Or you could look for townhouses that include big-building perks, like 347 State St., which comes with gym, pool, and doorman privileges from the full-service 200 Schermerhorn St. next door.

Resale value

Townhouse resale values are more affected by contextual factors like the overall health of the neighborhood, the attractiveness of surrounding property and businesses, and cultural trends. The condo market can fluctuate due a broader range of variables. Right now, the condo market is oversupplied, with foreign buyer activity down, increases in mansion and transfer taxes, and talk of a pied-à-terre tax. That could be a sign to stay away, or to buy before the market corrects itself and prices start rising again.

If you’re buying a brand new condo, you’ll typically pay a premium for it, and there are many, many more new condos built each year than new townhouses, simply as a function of space. According to data provided by Corcoran, the median resale condo price in third of 2019 was down 12 percent from last year—the continuation of a multiyear trend, accelerated by the increase in mansion and transfer taxes. So if you’re buying in a new development, you probably won’t be able to sell it at equal or greater value until the market rebounds.

“It all comes down to your situation,” Brown says. “Everyone has their own specific needs.”

Condo, co-op, or townhouse, Corcoran knows home. Visit corcoran.com today.

You Might Also Like

image
Co-ops 7 questions to ask before buying a penthouse
image
Negotiating + Financing Tips for buying NYC real estate as a foreign citizen
image
Buy What is a green building? A New Yorker's guide to LEED-certified condos
 
Brick Underground articles occasionally include the expertise of, or information about, advertising partners when relevant to the story. We will never promote an advertiser's product without making the relationship clear to our readers.

topics:

amenities buying closing condos maintenance & common charges safety taxes townhouse
SHARE
TWEET
BRICK’S PICKS
NYC apartment building with AC units
My neighbor's dripping AC is driving me crazy. What can I do?
Historic brick facades of NYC apartment buildings
Getting overcharged by a landlord? Here’s how the Tenant Protection Unit helps rent-stabilized tenants
Apartment buildings in Soho
New Rent Guidelines Board report justifies a rent freeze, tenant advocates claim
Brooklyn apartment buildings
Understanding net effective rent: Here's how to calculate your real monthly rent
image
How much should you renovate your NYC apartment or house before selling?
Council Member Shahana Hanif hold press conference before the City Council vote on Arrow Linen spot rezoning.
City Council signs off on 10-story towers for Arrow Linen site
Follow Brick on Instagram
@brickunderground | #brickunderground
Brick UndergroundBRICK UNDERGROUNDREAL LIFE. REAL ESTATE. REAL NEW YORK.
Social Links Footer
  • Facebook
  • Twitter
  • Instagram
  • Search
Main menu footer
  • Buy
    • The Market
    • Investing
    • New Construction + Condos
    • Affordable Housing
    • Co-ops
    • Negotiating + Financing
    • How to Buy in NYC Guide
  • Rent
    • Affordable Housing
    • Roommates + Landlords
    • The Market
    • The Search
    • How to Rent in NYC Guide
  • Sell
    • Staging + Open Houses
    • Negotiations + Closings
    • Getting Ready
    • How to Sell in NYC Guide
  • Live
    • Neighbors
    • Kids + Pets
    • Neighborhood Intel
    • Products + Test-drives
    • Troubleshooting
  • Improve
    • Small Spaces
    • Small Projects + DIY
    • Renovations
    • Design + Architecture
    • Products + Services
    • How to Renovate in NYC Guide

Get more news you can actually use...

Email Address

Delivered to your inbox weekly - for free.

*By signing up you agree to receive occasional emails on behalf of our sponsors

Footer Menu
  • About Us
  • Advertise

Copyright 2009-2024 by BND Ventures Inc | Privacy Policy | Terms of Service | Ad Choices | Login