Why This Matters
If single-family homes feel out of reach, condos and townhouses are often the next best step toward homeownership. But if you’re thinking about long-term wealth, it’s worth asking: Which one helps you build more equity over time?
Both condos and townhomes can be great investments — but the key differences in how they appreciate, their costs, and even Utah’s unique housing market can make one option stand out.
National Trends: Both Are Strong Performers
Over the past decade, both property types have appreciated significantly nationwide:
-
Condos: +82% value growth
-
Townhomes: +86% value growth
That means both have helped homeowners build real wealth — but townhomes have held a slight edge, performing nearly on par with single-family homes.
Regional Breakdown: Location Makes the Difference
Where you buy matters just as much as what you buy.
In more affordable regions like the Midwest and South, condos often outperformed townhomes. But in higher-cost markets like the West and Northeast, townhomes tended to appreciate faster — largely because they feel and function more like traditional houses.
👉 Utah’s market usually follows Western trends, which means townhomes often have the upper hand when it comes to long-term appreciation.
The Townhome Advantage
So why do townhomes tend to perform slightly better?
-
You own both the structure and the land, which typically drives stronger appreciation.
-
They appeal to a wider pool of buyers, especially those seeking a single-family feel without the full price tag.
-
HOA fees are often lower than condos, helping you keep more of your equity.
-
Townhomes also track closely with single-family home price growth, offering a solid long-term wealth-building path.
The Case for Condos
That said, condos still have some big advantages — especially for first-time buyers.
-
Lower upfront costs make them a more accessible entry point into homeownership.
-
They tend to perform well in dense, urban areas where space is limited.
-
Amenities like pools, gyms, and concierge services can add lifestyle value and appeal to certain buyers.
Just keep in mind: higher HOA fees and special assessments can eat into long-term returns, so it’s important to factor those costs in when comparing properties.
Hidden Costs to Watch
Every ownership type has its trade-offs.
-
Townhomes often come with more maintenance responsibility since you own the exterior and land.
-
Condos can carry higher HOA fees or surprise special assessments for community repairs.
Before you buy, always review the community’s reserves, HOA rules, and monthly costs to make sure the numbers work for your budget and goals.
The Bottom Line
Both condos and townhomes can build real wealth over time — the right choice depends on your goals, lifestyle, and local market conditions.
Here in Utah, where home values and demand remain strong, townhomes often have the advantage for long-term appreciation. But for many buyers, condos are the perfect starting point for building equity and getting into the market sooner.
Thinking about buying a condo or townhouse in Utah? Let’s talk strategy. The right property can set you up for serious equity gains over the next decade.
