Although the Toronto real estate market has seen some price adjustments down since the Bank of Canada raised interest rates in March 2022, three years into our shifting market the scant availability of housing stock and challenges with affordability continues to shape the Canadian dream of homeownership, including what that dream home looks like. 

For a large number of prospective Buyers, two of the must-have features today are a private street entrance and some outdoor space to call their own. During the pandemic, there was a huge shift in the desire and demand for having your own front door, being near ground level (which was preferable to having to share an elevator or having to climb several flights using the common stairwell), and having private outdoor space.

While high-density living and high housing prices have made condominium living the shelter type of choice for a large segment of the purchasing population, there is another alluring mid-density housing type that affords separation and privacy: the townhouse.

The Different Townhouse Types & Styles In Toronto

There are a number of townhouse types that vary depending on the way the units are configured and constructed on the property. For example, the traditional Victorian or Edwardian row house with its own front and back yards that shares its party walls with the adjoining neighbours could also be called a ‘townhouse’, but Torontonians tend not to ascribe it that label. From my lens in the real estate trenches now spanning 35 years, people consider ‘townhouses’ to be a collection of single-family dwellings uniformly built side by side sometime after 1960 or so. Similar dwellings that date earlier are typically called row houses. This may be because older row houses have often undergone modifications to their exteriors over time, which results in each having more individuation, so what at one time were a row of identical dwellings could look unique to one another today.

Freehold Townhouses

A freehold property is where one has the absolute ownership of the property without any limitations or conditions, giving the owner complete rights to use, sell, rent or transfer the property as they wish (subject to easements, rights-of-way, and local planning bylaws). This means the property owner can construct an addition, install a swimming pool, and paint their house whatever colour they choose.

Typically, most freehold townhouses are similar to row houses in that they face a public street, are situated on a deeded parcel of land, and may even have onsite parking accessed from a public lane running across the back of the property. However, there are instances where the laneway at the rear of the property is collectively owned by all the unit owners who each have a right-of-way to access their property to park their car – which includes an agreement to collectively pay for the maintenance and repair of the portion everyone accesses and enjoys. One might also come across a collection of freehold townhomes on an urban infill site with a ‘panhandle lot’, whereby the portion of the lot fronting the street is a narrow driveway that leads to one or two rows of townhouses constructed behind the neighbouring houses on either side of the driveway. In these instances, the parcel of land that each townhouse unit owns is also ‘panhandle’ shaped, meaning the driveway that fronts onto the street is divided into sections that run the length of the driveway that grant ownership to specific townhouse units. Then, the survey and title provide all the owners in the project the right-of-way to access their unit and park their car, with the obligation that all unit owners are obliged to contribute to the maintenance, repair & replacement of the right-of-way.

The image below is a portion of a survey for an infill townhouse project downtown west that is located on a long panhandle lot (which is the narrower portion on the right side).

The Condominium Townhouse

 A condominium townhouse is a type of shelter where individual units are privately owned, while common areas and elements are jointly owned by all residents. This ownership structure means that individual condo owners have the exclusive rights to their unit and its outdoor space, but also share a percentage ownership (often based on the square footage of their unit) of all the interior and exterior common areas on the property. What those are vary according to the building size & type, and the target market the developer geared their sales & marketing campaign to in the initial stages of development. Generally speaking, a lobby, common halls and a common terrace or landscaped grounds are common areas, while fitness facilities, a meeting room, or a library would be examples of common amenities. Furthermore. common elements like elevators, windows, the roof or a central air chiller – these are all components external to the interior of a condo unit, making them the responsibility of the condo corporation. Finally, a condominium can have few to multiple services for the lifestyle benefit of the community, such as a 24-hour concierge, guest suites for a nominal fee, or a swimming pool. And most condo corporations enlist the services of a property management firm to ensure everything operates smoothly and in accordance with the Condominium Act & the Condominium Authority. This means audited financial statements, disclosure and transparency of operations & accounting, and ensuring the Reserve Fund Study – an analysis that allows condominium corporations to prepare and plan for their long-term financial needs by anticipating the maintenance and replacement cost of every common component in the complex owned by the corporation. Every 3 years, engineers assess the condition of the property, project future costs, and determine the appropriate level of reserve fund contributions annually to ensure there is sufficient funding to meet these real costs.

In a nutshell, the smaller the building and the fewer the amenities, the lower the monthly common fees typically are, keeping in mind a condo corporation could face an unexpected costly expense that would force common fees to increase or result in a one-time special assessment where every owner pays their allocated share to resolve the problem in a quick and timely manner. For example, one small west-end townhouse complex built in the 1970s, perched on a ravine, had a common sanitary sewage holding tank. Because the City’s sewage lines were a few feet higher than the site, a pump was required to eject the sewage up into the City’s branch line. Unfortunately, after 50 years it failed, flooding units (Surprise!) to everyone’s dismay – including the Reserve Fund engineers of a very reputable firm who had been completing the Reserve Fund Studies for 21 years – because no one living or familiar with the project knew this holding tank existed (Srsly?). In another instance, a small 4-storey loft conversion was implementing their 8-year plan to replace the windows, redo the flashing and seal the building, including a brick repointing & restoration. To their shock, the cost to wrap the building in scaffolding was twice as much as their estimate and they had anticipated they would wrap the building three times. Being cost-prohibitive, the owners decided to fast-track the entire scope of work and get it done. Why? Seeing the costs for major building components soar over the previous 3 years, the residents worried that costs would continue to inflate faster than their incomes. Although it meant a substantial special assessment in the 6 figures, the entire skin of the building would be watertight for the next 20 years. 

There are pros and cons with each type, and choosing what’s best for you really depends on personal preferences. With a freehold townhouse, there is more maintenance and upkeep required, but you have more autonomy around exterior style and landscaping. But if you are looking for something more turnkey, with fewer To Dos involving a ladder or rake, and the assurance and peace of mind that residents abide by the Rules & Regulations, then you’re likely better suited to purchasing a condominium.  Further to that, before you fully reject the notion of paying a common fees, do a deep dive and calculate how much of the monthly costs are expenses you would also pay owning a freehold property. And when you look at how much of a unit’s common fee goes into the reserve fund for future repairs and replacement, ask yourself if you would be putting that same amount if not more to address the repairs, maintenance and replacement of all the major building components you can anticipate having to pay annual for a property that was of a similar age and condition.  

Three Popular Townhome Styles 

Here’s what’s pretty common in Toronto:

• Row townhouse, where homes are joined, side-by-side, in a row, just as the name implies. While you will see this design frequently in modern townhouse design, it has deep historical roots, and we see it often with the century-old Victorian and Edwardian row houses in Toronto.

• Stacked townhouse, where homes are stacked on top of each other, often over two or three stories.

• Back-to-back townhouse shares a rear and side wall with the adjacent properties.

A Layout To Love!

Unlike a traditional condominium unit, where the layout more resembles an apartment, the townhouse encapsulates a house-like feel. 

Depending on the design, typically the floor plan extends over multiple levels. Often, townhomes benefit from vertical space, which contributes to a sense of division of spaces, helpful in particular for families with multiple activities going on under a roof, and the need for privacy and quiet during various times of the day: working from home, nap time, or bedtime. It’s also appealing for homeowners who work shift work, who would benefit from a divided floor plan to get rest in the middle of the day, and the height of household activity.

There is privacy in having your own entrance, but a built-in community as well. Affordability is a driver of this housing type for sure, but the pandemic revealed some previously overlooked housing features that carry a premium, that have stuck through the years. It’s that idea of having on-demand privacy (i.e. your private entrance) that lets you access your home easily that is something to consider with future buyers.

True, a townhouse, being that it is more “house-like”, there is more maintenance involved with ownership, but that also offers an opportunity to personalize that ownership experience, especially when it comes to the home’s exterior (depending on the rules of the homeowner association and development), but more importantly, landscaping front and back- which for those who are green thumb inclined, is a big draw. Some townhouses even offer a garage, excellent for extra storage- or even for parking your car!

Another benefit (and a premium for which future buyers would pay) is proximity to ground level. 

For those seeking turnkey or low-maintenance living, the townhouse is an excellent choice. For those who travel frequently for business or pleasure, who have a second residence like a cottage or a winter residence in a warmer climate, or for busy urban professionals who want to focus energy at the office, not on home upkeep, it is especially appealing.

The Benefits Of Private Outdoor Space 

Townhomes typically have dedicated outdoor space, which may be exclusively private, or might be deeded with common areas, or in some cases, both.

One major perk with outdoor space in this housing type is that there is usually an electrical outlet, a hose water bib and often a gas line for a barbecue, which makes enjoying the outdoors easy.

Some townhome styles might even have some green space, and in addition, a balcony and/or rooftop terrace. In addition to enriching your lifestyle during your tenure as a homeowner, know that a sublime outdoor space is a highly coveted feature that will entice future buyers. I wrote about just that in these posts:  What Is The Value Of A Balcony Or Terrace?  &  The Continuing Demand For Outdoor Space In Toronto.

What housing type best suits you? If you are looking for a ground-level home, with curb appeal, including a lovely front door to call your own, along with outdoor space and a thoughtfully designed floor plan, a listing like the one below – NOW SOLD –  will interest you!

We call it: A Tony Towne On Bloor Street West At Symington – NOW SOLD!

Townhouse 2 is a beautiful multi-level dwell with northly exposure, making it quieter than those units facing the bustle of Bloor. Freshly painted throughout, this home offers about 1000 square feet of well-designed living space spread over four levels (plus a 252 square foot roof terrace!) and has the feel of a house. An open plan entertainment space, two bedrooms, two bathrooms, a flex/office space, a roof terrace, a balcony, a private garage with direct access into the unit… this one has it all!

Want to have someone on your side?

Since 1989, I’ve steered my career through a real estate market crash and burn; survived a slow painful cross-country recession; completed an M.E.S. graduate degree from York University called ‘Planning Housing Environments’; executed the concept, sales & marketing of multiple new condo and vintage loft conversions; and guided hundreds of clients through the purchase and sale of hundreds of freehold and condominium dwellings across the original City of Toronto. From a gritty port industrial city into a glittering post-industrial global centre, I’ve navigated the ebbs and flows of a property market as a consistent Top Producer. And I remain as passionate about it today as when I started.

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Serving first and second-time Buyers, relocations, renovators, and those building their long-term property portfolios, our mandate is to help clients choose the property that will realize the highest future return on their investment while ensuring the property best serves their practical needs and their dream of “Home” during their ownership.

Are you considering selling? We welcome providing you with a comprehensive assessment free of charge, including determining your Buyer profile, ways to optimize your return on investment, and tailoring the listing process to suit your circumstances. Check out How Urbaneer Sold An East York Bungalow ‘Estate Sale’ For Redevelopment to learn more about what we do!

Consider letting the Urbaneer Team guide you through your Buying or Selling process, without pressure, or hassle.

The pleasure would be ours.

Thanks for reading!

-The Urbaneer Team

Steven Fudge, Sales Representative
& The Innovative Urbaneer Team
Bosley Real Estate Ltd., Brokerage – (416) 322-800

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