How Much Does It Cost To Build a Townhouse?

For people who want a smaller home that combines single-family living with condominium design, a townhouse can be an attractive home option. A townhouse may have up to a two-car garage, shared living spaces on the main floor, and bathrooms and bedrooms on the upper floor. Decks, patios, terraces, gardens, and other features may also be included.

Townhouses, however, are not free-standing, single-family homes. They are often connected to another townhouse and may be part of a long row of homes. 

These structures are less costly to build despite offering similar benefits to single-family living. According to Fixr, the national average cost for a townhouse is around $175,000. On the low end, it can cost $80,250, and on the high end, it can cost $335,500. But, the typical average range is between $115,500 - $237,500.

However, it's important to take note of many factors that can impact the cost to build a townhouse, such as the location, size, type, style, and number of units. To come up with a competitive cost estimate and proposal for this type of project, major general contractors are using technology such as AI estimating software. The technology enables them to speed up the takeoff process and shift their focus towards high-value activities such as scoping and value engineering.

Read further to learn the cost to build a townhouse and the different factors that influence it. 

Disclaimer: The pricing stated here is based on average data from third-party research. Prices may still vary due to differences in seasonality and supplier.

How Much Does it Cost to Build a Townhouse by City?

A townhouse's location is one of the many factors that can influence its cost. This is due to market demand, labor costs, construction materials available, and inflation rates varying between cities and countries. 

HowMuch.net reports that New York, NY has one of the highest townhouse costs in the U.S. with an average cost of $947,759. In contrast, according to the same report, Denver, CO has the lowest average construction cost of $548,357. Read the table below to learn more.

The Average Cost to Build a Townhouse Per City

The table below shows a summary of the average construction costs of a townhouse in some U.S. cities. Source: How much does it cost to build a townhouse by HowMuch.net

The Average Cost to Build a Townhouse Per City 

The bar chart below visually compares the differences in average townhouse construction costs between some U.S. cities.

‍

Factors that Impact Townhouse Construction Costs

On average, building a townhouse typically ranges between $115, 500 - $237,500. The wide range of associated costs can be attributed to various factors such as townhouse size, type, style, and the number of units. Read further to learn more about each factor below. 

How Much Does It Cost To Build a Townhouse By Size?

The interior layouts of townhouses are often similar due to the shared walls and building style, making it easier and faster to build. This is one of the main reasons why townhouses are more cost-effective to construct compared to single-family homes. 

Townhouses can cost around $111 per square foot on average, while those in urban areas can cost around $125 per square foot. For modular construction costs, the range is between $70 - $110 per square foot. 

In the table below, notice that the high-end costs of modular townhouses are mildly similar to the low-end costs of traditional construction. Depending on the materials used and the size of the townhouse, modular construction can reduce the costs by $18,000, and up to $100,000. 

‍

How Much Does It Cost To Build a Townhouse Type?

Townhouse construction costs are not only impacted by size or location, but also by how the townhouse is built. For example, modular townhouses are less costly compared to stick-built townhouses. This is because, for modular townhouses, most parts are manufactured off-site and transported to the job site to be assembled. As a result, it can be constructed faster and often for a lower cost than traditional stick-built houses.

Cost to Build a Townhouse Per Type 

The table below shows a summary of the two types of townhouses along with their low-end and high-end costs. 

Modular -  $75,000 to $187,000

If there’s minimal time and budget for managing architects, engineers, and other construction experts, modular and prefab townhomes might be a great alternative. Most parts of a modular townhouse are factory-built. A builder assembles the finished products at their new locations after they are transported. This means the construction of a modular townhouse is faster and free from typical on-site delays caused by unpredictable weather. They’re also cost-effective, ranging between $75,000 to $187,000 to build. Although, costs may vary depending on whether the townhouse will be prefab or custom-designed. 

Stick Building -  $115,500 to $237,500

Stick building is a more traditional or classic approach to building a townhouse. Essentially, the house is built on-site using a wooden frame. This wooden framework guides the other building materials such as drywood and plywood before putting the outer layer such as vinyl siding, brick, or brick veneers. While stick-built townhouses can cost around $115,500 to $237,500, costs still vary depending on factors like location and materials used.  

How Much Does It Cost To Build a Townhouse by Style?

There are three styles of townhouses - traditional, stacked, and urban. Read further to learn more on how the style and the building methods used affect the townhouse construction costs. 

Traditional Townhouse

‍

Traditional is the most common style for townhouses. A townhouse of this style typically has two floors. The first floor consists of living spaces and the second floor consists of bedrooms. Traditional townhouses may also have basements, garages, and yards.

Stacked Townhouses

While a less common style for townhouses, the stacked layout can be found in faraway suburbs and more popular areas. It is similar to a traditional townhouse, except it consists of two townhouses stacked on top of one another. This means, there are two townhouses in one row, resulting in a building that’s four stories high in total, instead of two. There are doors on both houses leading to the street, and the garages are behind alleys.

Urban Townhouse

While appearing similar to traditional townhouses, an urban townhouse is considered more sophisticated and stylish. It features contemporary architecture and interior designs, along with upscale features such as wood floors, granite countertops, and even 9-foot ceilings. They may also be larger and have more open floor plans. Because of their locations and innovative exterior, their construction costs are often higher.

Cost to Build a Townhouse Per Style

The chart below shows how traditional-style townhouses cost the least compared to stacked and urban townhouses regardless of the building style used. Traditional townhouses cost between $70 - $110 per square foot for modular, and $110 - $135 per square foot for stick-built. On the other hand, urban townhouses are the most expensive, costing between $120-$150 per square foot for modular, and $145 - $170 per square foot for stick built.

‍

How Much Does It Cost To Build a Townhouse Per Number of Units?

Townhouses are rarely built as single units. Typically, they’re built in groups of four or more. To keep costs down, they have shared walls, and the design per unit remains consistent. Thus, regardless of the number of units made, the cost per individual unit rarely changes. 

Assuming that each unit is around 1,500 square feet in size and that it has a garage, here are some average cost ranges for a townhouse built both traditionally and modularly.

Cost to Build a Townhouse Per Number of Units

The table below shows a cost summary of a townhouse according to the number of units. The costs are divided into two building methods, modular and stick-built along with their low-end and high-end costs. 

Other Townhouse Construction Costs To Consider

Pre-Construction Costs   

Pre-construction costs are fees that the project owner must pay before the construction begins. This includes cost factors such as building permits, demolition fees, and other local charges.

Pre-Construction Costs to Build a Townhouse

The table below shows the pre-construction costs of building a townhouse. Source: Data taken from cost to build a house by Togal.AI

Labor Costs

Labor costs make up about 40% of the total cost of constructing a townhouse. These labor costs are often influenced by a general contractor's buying power, the size, style, and complexity of the townhouse, and its location.

Labor Costs to Build a Townhouse

The table below shows the labor costs of building a townhouse. Source: Data were taken from cost to build a house by Togal.AI and Roof Replacement Cost by Forbes.

Speed-Up Cost Estimation for Townhouse Projects with Technology

Because townhouses have shared walls and a consistent design, they are easier and more cost-effective to build. This makes them a great alternative for homeowners who want the benefits of single-family living and affordable housing. 

Several factors impact the cost to build a townhouse. This includes the location of the project, style, building methods, number of units, and labor costs. For example, townhouses that are built closer to big cities and townhouses built with sophisticated urban designs may cost more due to their unique exterior designs and inflated material prices.

Want to speed up the takeoff and cost-estimation process of your townhouse construction project? Leverage our AI estimating software, Togal.AI. With Togal.AI, you can finish takeoffs in seconds with 97% accuracy. 

Experience how Togal.AI can help finish takeoffs in seconds and increase the profitability of your townhouse construction project by booking a free demo.