By spring 2026, the GTA saw condo apartment prices fall 6.4% year-over-year to an average of C$639,468, while freehold townhome sales rose 2% in the same period. The gap between what buyers want and what the market is building is narrowing — and townhomes sit right in the middle of that shift.
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This article is general information only and does not constitute professional advice. For your specific situation, consult a qualified professional.
That price gap between condos and townhomes has shrunk by tens of thousands of dollars in some markets, making the upgrade far more accessible. Meanwhile, detached homes remain out of reach for many buyers, with Toronto and Vancouver routinely exceeding $1.5 million. The result is a three-way squeeze that is pushing more Canadians toward the middle option — the townhome. Here’s what you actually need to know.
One term you’ll hear a lot in this discussion is freehold townhome.
What I tend to notice is that buyers often confuse freehold townhomes with condo townhomes. A condo townhome still comes with monthly fees and shared ownership of common elements like driveways or roofs. That distinction matters more than most people realise when comparing monthly costs.
If you’re weighing these options, it helps to look at how interest rate changes affect total ownership costs across property types — the gap between variable and fixed rates can shift the math significantly.
What Townhomes and Condos Actually Cost in 2026
Headline prices only tell part of the story. The real cost difference between a condo and a townhome shows up in the fees, taxes, and carrying costs that follow you every month.
Here’s how the major Canadian markets stack up on price alone.
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| Property Type | GTA (May 2026) | Calgary (Apr 2026) | Ottawa (Apr 2026) |
|---|---|---|---|
| Detached | C$1,358,131 | C$830,000+ | C$863,000 |
| Freehold Townhome | C$916,474 | C$461,000 | C$556,000 |
| Condo Townhome | C$729,081 | — | — |
| Condo Apartment | C$639,468 | — | — |
The table shows that in Calgary, a townhome costs roughly 55% of what a detached home does. In Ottawa, the ratio is about 64%. In the GTA, a freehold townhome runs about 67% of the detached price, while a condo apartment is about 47%.
But the price gap has been compressing. A buyer who sold a C$600,000 condo in 2024 and bought a C$1,200,000 detached home in 2026 is roughly C$65,000 better off on the trade compared to what that same move would have cost two years earlier. That compression is making townhomes look like a smarter financial step.
Rising condo fees add another layer. Monthly maintenance charges can range from a few hundred dollars to over C$1,000, depending on the building and amenities. Freehold townhomes skip that line item entirely. Over a five-year holding period, the difference between a C$600 monthly condo fee and a zero-dollar fee is C$36,000. My first move would be to run that number before comparing purchase prices.
Buyers are also factoring in property taxes, which are generally lower on townhomes than detached homes, and the cost of a home safe for storing documents — a small but real expense that adds up when you’re moving from a condo with fewer storage options.
Common Mistakes Buyers Make With Townhomes and Condos
Confusing Freehold Townhomes With Condo Townhomes
Many buyers see the word “townhome” and assume they own the land and have no monthly fees. That’s only true for freehold townhomes. Condo townhomes come with monthly maintenance fees, shared responsibility for common areas, and often restrictions on what you can do with the exterior. The price difference between the two types in the GTA is about C$187,000 — freehold townhomes averaged C$916,474 in May 2026, while condo townhomes averaged C$729,081. That gap exists partly because the freehold product gives you more control and fewer ongoing costs. Ask the listing agent or check the title deed before you fall in love with a property.
Ignoring the Long-Term Cost of Condo Fees
A C$400 monthly fee might not seem like much when you’re comparing a C$650,000 condo to a C$750,000 townhome. But over 10 years, that C$400 becomes C$48,000 — and fees tend to rise with inflation. In some buildings, fees have climbed by 5% to 10% annually. The total cost of ownership over a decade can easily surpass the higher purchase price of a townhome. What I’d weigh here is whether that monthly fee is fixed or subject to increases, and whether the building has a healthy reserve fund to cover major repairs without special assessments.
Overlooking the Value of Outdoor Space and Parking
Condos typically offer a balcony and a shared parking spot — if you’re lucky. Townhomes come with a private entrance, a small yard or patio, and a garage or dedicated driveway. In a post-pandemic market where remote work is still common, that extra space for a home office or a garden matters. Statistics Canada data shows remote work continues to drive demand for homes with dedicated office areas. Buyers who skip a townhome because of the price premium over a condo often end up spending more on co-working spaces or storage units to make up for what they gave up.
Assuming Pre-Construction Is the Only Way to Get a Deal
In 2025, 33% of new condo sales happened at occupancy or registration — up from 9% in 2024. That means buyers are increasingly waiting until a building is nearly finished before committing. Pre-construction townhomes come with their own risks: construction delays, changes in market conditions, and the possibility that the finished product doesn’t match the floor plan. Move-in-ready resale townhomes eliminate that uncertainty. If you’re looking at a new development, check the builder’s track record and whether the deposit structure is refundable.
For buyers dealing with legal questions around property titles or strata rules, it’s worth consulting a Canadian real estate lawyer before signing anything — especially if the property is a condo townhome with shared ownership elements.
How to Decide Between a Townhome and a Condo
Start With Your Monthly Budget, Not the Purchase Price
The purchase price is the headline number, but your monthly carrying costs determine what you can actually afford. Add up the mortgage payment, property taxes, utilities, and any condo fees or maintenance reserves. For a freehold townhome, the monthly cost will be lower than a comparable condo because there’s no fee line. For a condo apartment, factor in the fee plus potential special assessments. Use the federal mortgage stress test rate — currently around 5.25% or the contract rate plus 2%, whichever is higher — to see if you’d still qualify after a rate rise. The government housing policies shaping the market can also affect your eligibility, so keep an eye on those changes.
Match the Property Type to Your Life Stage
Millennials and Gen Z buyers with young families tend to outgrow condos quickly. Townhomes offer multiple floors, extra bedrooms, and outdoor space that work for a growing household. Empty-nesters and retirees, on the other hand, may find a single-level condo apartment more manageable, especially if stairs become an issue. Remote workers need a dedicated office — a townhome’s extra room or basement conversion often provides that without the cost of a detached home. What tends to make sense here is to think about where you’ll be in five years, not where you are today.
Understand the Policy Levers That Favour Townhomes Right Now
Several government policies are actively tilting the playing field toward townhomes. The federal government extended 30-year amortizations for first-time buyers of new construction as of August 2024. The expanded insured mortgage cap to C$1.5 million qualifies buyers for larger mortgages that put freehold townhomes within reach. Ontario’s full 13% HST rebate on new homes up to C$1.5 million applies to purchase agreements signed between April 1, 2026 and March 31, 2027, with construction starting by December 31, 2028. These policies don’t apply to resale condos or existing homes — they are specifically designed to boost new construction, and townhomes are the primary beneficiary.
Look at the Exit Strategy Before You Buy
Investors should pay close attention to resale demand and rental vacancy rates. Townhomes attract longer tenant retention and stable end-user demand, while condos — especially in oversupplied markets like the GTA — face slower appreciation and higher vacancy risk. The CIBC/Urbanation report found investors in newly completed condo units faced average negative cash flow of C$597 per month. If you’re buying as an investment, run the numbers on both the rental income and the eventual resale value. A townhome that costs more upfront but rents consistently and appreciates steadily may outperform a cheaper condo that sits vacant or sells at a discount.
Adding a video doorbell is a small upgrade that can improve security and curb appeal for either property type — something tenants and buyers notice.
Frequently Asked Questions
What’s the difference between a freehold townhome and a condo townhome? ▾
Are townhomes cheaper than condos in Canada? ▾
Why are condos losing value in the GTA? ▾
What is the HST rebate for new homes in Ontario? ▾
Can I get a 30-year mortgage for a townhome? ▾
Is it better to buy a resale or pre-construction townhome? ▾
What the Shift to Townhomes Means for the Market
CMHC projects that condominium starts will be especially weak through 2028, while ground-oriented homes like townhomes are expected to recover later in the forecast period, led by the Prairies, Ontario, and British Columbia. That’s not a temporary blip — it’s a structural reset in what gets built and what buyers want. The investor-driven condo boom of 2021–2022 is over, and the market is recalibrating toward end-users who value space, privacy, and predictable costs.
Remember: this article is general information only. For advice on your specific situation, speak to a qualified professional.
If this was useful, you might also want to read Will Canada Ever See Affordable Housing Again or Is It a Permanent Crisis?
Sources and Further Reading
How Government Policies Are Shaping the Future of Real Estate in Canada — A deeper look at the federal and provincial policies influencing housing affordability and construction trends.
Downsizing in Canada: Rightsizing Your Life and Your Finances — Practical advice for empty-nesters and retirees considering a move from a detached home to a townhome or condo.
Canada’s Home Search (2026). Why Townhomes Are Becoming Canada’s Hottest Property Type. 🔗
Nest Digest (2026). Townhome Demand Rising in the Condo Market. 🔗
Living in Markham (2026). Freehold Is Back: Why GTA Buyers Are Choosing Houses Over Condos in 2026. 🔗
CMHC (2026). Housing Market Outlook — Canada. 🔗
