Buying your first home can feel frustrating when the numbers don’t line up the way you expected. You know you’re ready. You’re tired of renting. You want to build equity instead of writing another check to your landlord. But every time you look at detached single-family homes, the price tag feels just out of reach.
Here’s the shift you may not be watching: townhomes are stepping into the spotlight in a big way — and that’s opening doors for first-time buyers.
There Are More Townhomes Than We’ve Seen in Years
Builders are leaning into townhomes because affordability matters. According to data from the National Association of Home Builders (NAHB), nearly 1 in 5 new single-family homes being built today is a townhome. That’s the highest share on record.
(see graph below)
A decade ago, that number was closer to 1 in 10. That’s not a small change. That’s a major increase in supply.
More townhomes being built means more choices for buyers like you. And more choices mean you’re not stuck fighting over the same handful of homes. When inventory expands, opportunity expands with it.
Why Townhomes Are Winning on Affordability
Let’s talk numbers — because that’s usually where the frustration starts.
National data from Redfin shows townhomes are typically priced lower than detached single-family homes. And as more townhomes have come to market, that pricing gap has grown.
(see graph below)
Most modern townhomes fall in the 1,300–1,500 square foot range. They’re intentionally designed with efficient layouts and less wasted space. Because they’re smaller and more cost-effective to build, they usually come with a more approachable price tag — and often a lower monthly payment.
Ali Wolf, Chief Economist at NewHomeSource, explains it well:
“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.”
In other words, you get to start building wealth without overextending yourself.
Builder Incentives Are Adding Fuel to the Fire
There’s another factor working in your favor right now: builder motivation.
With more inventory on the market than we’ve seen in recent years, builders are focused on moving homes. According to the National Association of Realtors (NAR), about 40% of builders cut prices on newly built homes at the end of last year, and roughly two-thirds offered incentives like mortgage rate buydowns.
That can translate into closing cost assistance, price flexibility, or a lower interest rate — all of which can make a meaningful difference in your monthly payment and upfront costs.
The Bottom Line
If buying your first home feels just out of reach, it may not be your timing that’s wrong. It may simply be the type of home you’re targeting.
Townhomes aren’t a compromise. They’re a strategy. And sometimes the smartest move isn’t waiting — it’s choosing the right path to finally get in the game.
