Generally smaller than a single-family home, this dwelling is part of a row or complex containing multiple homes of the same or similar design. Units consist of two or more floors, often with a street-level garage. Each townhome shares at least one wall with neighbors, but has its own entrance and outdoor area. Owners have title to--and pay property taxes on--their individual unit and lot, as well as joint ownership of common areas and building exteriors. In a fee-simple scenario, each owner pays for maintaining his or her unit and for services such as snow and garbage removal. Alternately, townhomes can be part of a homeowners association in which all residents equally share financial responsibility for services and common elements such as doors, roofs and gates.

A form of construction and ownership that has become popular since the 1960s. An buyer owns all of the space within his or her unit, similar to a condominium. Townhomes often are condominiums, but share vertical walls with the neighbor on either side. Townhomes typically have a garage on ground level and either a patio or balcony. Exterior walls, roofs and sometimes garages are designated as common elements.