How much does it cost to build a townhouse?
How much does it cost to build a townhouse?
$80 – $200 cost per square foot
$120,000 – $340,000 total average cost per unit
Average cost to build a townhouse
The average cost to build a townhouse is $80 to $200 per square foot or $120,000 to $340,000 per unit. The total cost depends on the unit size, quality of materials, and number of bedrooms. The average cost to build a complex with 2 to 5 townhouse units is $240,000 to $1,700,000.
| Total square footage | Average total cost* |
|---|---|
| 750 | $60,000 – $150,000 |
| 1,000 | $80,000 – $200,000 |
| 1,500 | $120,000 – $300,000 |
| 1,700 | $136,000 – $340,000 |
| 2,000 | $160,000 – $400,000 |
| 2,200 | $176,000 – $440,000 |
| 2,500 | $200,000 – $500,000 |
*Not including the cost of land or site prep
What is a townhouse?
A townhouse or townhome is a single-family home, usually with two floors. Most townhouses are built in rows with shared walls, similar to duplexes. Some have small, fenced yards or patios for each townhouse, while others have one large, shared backyard space.
Cost to build a townhouse by type
Like any other home, you can either build a townhome entirely on-site or through modular building. Modular townhomes are constructed mostly off-site, and then professionals assemble the completed sections quickly at the job site.
| Type | Average cost per square foot | Average total cost* |
|---|---|---|
| Modular | $80 – $150 | $120,000 – $255,000 |
| Traditional stick building | $100 – $200 | $150,000 – $340,000 |
*For 1,500 to 1,700 square feet
Modular
Modular townhome building costs $80 to $150 per square foot or $120,000 to $255,000 total, including labor. Custom designs cost more than standard or prefabricated designs. Modular buildings typically cost less, but it may be harder to find qualified firms in your area.
This technique is usually used to build an entire row, so you may not be able to build a stand-alone modular townhouse or add one to an existing row.
Traditional stick building
A traditional stick-built townhouse costs $100 to $200 or $150,000 to $340,000 total on average. This method means the construction crew does all of the building on-site, which offers more flexibility and custom options. However, this method is more expensive and more likely to suffer delays due to weather.
If you want to build a townhouse as a rental property but can’t afford to build a new one, consider financing an existing one. That way, you’ll be able to find tenants and start generating income sooner.
Townhouse construction cost factors
Building a townhouse includes several projects that require different professionals. Each job varies in cost depending on the quality of materials, local labor rates, and unit size:
| Factor | Average cost per square foot |
|---|---|
| Foundation cost | $5.00 – $33.00 |
| Framing cost | $11.00 – $30.00 |
| Drywall cost | $1.50 – $3.50 |
| Flooring cost | $4.00 – $15.00 |
| Plumbing cost | $4.00 – $5.00 |
| Interior trim cost | $4.00 – $10.00 |
| Siding cost | $4.00 – $13.00 |
| Roof cost | $3.00 – $6.00 |
| Insulation cost | $1.00 – $4.50 |
| Electrical wiring cost | $4.00 – $9.00 |
| HVAC system cost | $3.00 – $6.00 |
| Interior painting cost | $1.00 – $3.00 |
| Countertops cost | $50.00 – $150.00 |
| Driveway cost * | $3.00 – $12.00 |
| Garage cost * | $35.00 – $60.00 |
| Doors cost | $225 – $1,900 each |
| Windows cost | $450 – $1,500 each |
| Light fixtures cost | $70 – $300 each |
| Toilets cost | $350 – $800 each |
| Sinks cost | $330 – $1,300 each |
| Cabinets cost | $150 – $500 per linear foot |
| Fence cost * | $20 – $60 per linear foot |
| Appliances cost | $2,500 – $6,800 per kitchen |
*Optional
The following factors also affect the cost to build a townhouse:
Number of units: You’ll end up paying more if you build multiple townhomes to turn them into rental properties rather than one unit as a primary residence. Stacked and urban-style townhomes cost more than traditional designs.
Region: Townhomes on the east or west coast typically cost more than in Midwestern or Southern states. Building near restaurants, schools, highways, major cities, or bodies of water also costs more.
Land: Before you can build a townhouse, you’ll have to purchase the land. Lots typically cost anywhere from $3,000 to $150,000, depending on the location and how many units you plan on building. You’ll also have to pay property taxes based on the value of the land and building.
Financing: Borrowing money from a bank, lender, or investor costs more money in interest in the long run, but it’s the best option if you can’t pay for everything upfront.
Maintenance: Even after your team finishes building, you’ll still have to pay for utilities and other relevant maintenance fees. Home maintenance costs $4,000 to $22,000 annually on average. Landscaping costs $4 to $12 per square foot if you pay for others to handle it.
Demolition: If there are existing structures or plant life on the lot, you’ll have to pay to remove them. Demolition costs $4 to $10 per square foot, and clearing wooded land costs $1,500 to $3,000 per acre.
Building permits: General contractors normally acquire building permits and incorporate them into their labor fees.
Labor
When building a townhouse, you’ll need several different professionals to design the building, make sure the land and plans are structurally sound, and start construction:
An architect charges $100 to $250 per hour.
A structural engineer charges $100 to $220 per hour.
A general contractor costs $50 to $150 per hour.
Electricians cost $50 to $130 per hour.
Plumbers cost $45 to $150 per hour.
An interior designer costs $50 to $200 per hour.
If you haven’t bought land or employed anyone yet, you may want to hire a real estate attorney to help navigate construction laws and zoning regulations. They can also draft contracts for your contractors.
Townhouse vs. other home types
If you’re not sure what type of home to build, use the table below to see the cost to build different types of homes. Duplexes, townhome complexes, and apartment buildings cost more overall to build, but their cost per square foot is often lower than a traditional house.
| Home type | Average cost per square foot |
Average cost per unit |
Average total cost |
|---|---|---|---|
| Cost to build a townhouse | $80 – $200 | $120,000 – $340,000 | $240,000 – $1.7M |
| Cost to build a duplex | $150 – $280 | $150,000 – $280,000 | $300,000 – $560,000 |
| Apartment building cost | $150 – $400 | $75,000 – $600,000 | $3.75M – $30M |
| Cost to build a house | $100 – $155 | $155,000 – $416,000 | $155,000 – $416,000 |
Townhouse building FAQs
Can you build equity in a townhouse?
Yes, you can build equity in a townhouse because, like houses, they tend to increase in value over time. They have particularly good resale value in high-demand locations and areas with young renters. You can live in a townhouse or use it to earn rental income while you live elsewhere.
However, if you’re building one or more townhouse units for rental income, be aware that landlords have many responsibilities that can be stressful—especially if you don’t have a property manager to handle day-to-day issues. Property management fees range from 8% to 12% of the monthly rent.
How long does it take to build a townhouse?
Building a townhouse takes about 6 to 12 months, depending on its square footage and whether it’s modular or stick-built. Material shortages, disputes, or inclement weather can cause delays. In comparison, building an apartment complex takes 12 to 24 months, and building a duplex takes about 12 months.
What’s the difference between a townhouse and a condo?
Condos and townhomes are similar, but the main difference comes down to ownership. Condominium owners just own the home (usually an apartment unit), not the land it’s built on. They’re usually responsible for maintaining the condo interior but not the exterior or landscaping.
Townhome owners, on the other hand, own the land and the property itself. They’re responsible for maintaining and repairing the interior and exterior of the townhouse.
Getting estimates from townhouse construction companies
Before you hire an architect or a residential construction company near you, make sure you:
Choose companies with the best reviews on HomeGuide and Google.
Ask to see a portfolio or pictures of past townhouse builds.
Get 3+ different estimates to compare.
Choose contractors who are licensed, bonded, and experienced.
Get a written estimate and contract before making any payments.
Questions to ask townhome builders
When hiring builders and other professionals, remember to ask these questions:
How long have you been in business?
Can you show me any reviews from past clients?
Will you hire any necessary subcontractors, plumbers, and electricians?
How much feedback can I give during the building process?
What are your labor rates right now?
Could you get me any discounts on materials for this?
What delays or extra fees should I anticipate?
Can you give me an itemized, written estimate and contract?
Using our proprietary cost database, in-depth research, and collaboration with industry experts, we deliver accurate, up-to-date pricing and insights you can trust, every time.