Torn between a condo and a townhome in Denver? You are not alone. Both options can offer great locations, strong value, and lower maintenance than many single-family homes. The best fit comes down to how you want to live, what you want to maintain, and how lenders and HOAs treat each property. In this guide, you will learn the real differences in ownership, costs, insurance, financing, lifestyle, and resale so you can move forward with clarity. Let’s dive in.
Quick definitions in Denver
What a condo really is
A condominium means you generally own the interior of your unit and a fractional interest in shared areas like the roof, hallways, and grounds. A condo association manages those common elements under recorded rules and bylaws, and you pay monthly HOA dues. In Denver, condos often show up as high-rise or mid-rise buildings in neighborhoods like LoDo, Capitol Hill, Cherry Creek, and Uptown, plus smaller courtyard-style complexes.
What a townhome really is
A townhome often provides fee simple ownership of your unit and the land underneath, which can include exterior walls, roof, and garage. Many townhomes also sit inside an HOA that handles shared landscaping or driveways. In Denver, you will see row-style and attached townhomes with private entries and garages in the Highlands, West Wash Park, parts of Capitol Hill, and areas north of Cherry Creek.
Why the legal structure matters
The legal setup decides what you insure, what you maintain, and how lenders treat the property. Some Denver townhomes are actually structured like condos for the building envelope, which changes insurance and lending. Always confirm the exact legal description and the CC&Rs for any property you are considering.
Cost and HOA: what you pay
HOA dues and what they cover
Condo fees often cover exterior maintenance, a master insurance policy, common utilities like water and trash, elevators, and amenities. Because so much is centralized, condo dues are commonly higher than single-family dues. In central Denver, fees vary widely, often from the low hundreds to $500–$800 or more in amenity-rich buildings. Townhome fees vary by community and may be lower if you as the owner handle your own exterior maintenance.
Special assessments and reserves
Monthly dues are only one piece of the puzzle. Review the HOA’s budget, reserve study, and history of special assessments. Older Denver buildings may have deferred maintenance that leads to assessments. Red flags include low reserves relative to major replacements, frequent assessments, or ongoing litigation.
Taxes and utilities
Property taxes follow Denver County rules and are based on assessed value and mill levies, not the label of condo or townhome. Your tax bill depends on value, not property type. Utilities are often bundled into condo dues for items like water and trash, while townhome owners are more likely to pay utilities directly.
Insurance: cover the right things
Condo insurance basics
Condo owners typically carry an HO-6 policy that covers interior finishes, personal property, loss of use, and liability. The association’s master policy covers common elements, and can be bare walls-in or all-in. Confirm the master policy type and the deductible exposure. Some associations require owners to cover a share of the master deductible, which can be significant.
Townhome insurance basics
Townhome insurance depends on the ownership structure. If you own the exterior and the lot, you may need an HO-3 or HO-5 policy that covers the structure and land. If the HOA insures the structure, a different policy type may apply. Clarify responsibilities with both your insurer and the association documents before you bind coverage.
Financing: approvals and lending
How lenders view condos
Many loan programs require condo projects to meet specific approval rules. Projects with high investor occupancy, low reserves, or pending lawsuits can be ineligible for some loans. This can affect your financing today and your buyer pool at resale. Ask your lender early about condo project requirements so you are not surprised later.
How lenders view townhomes
If a townhome is fee simple with private exterior and lot ownership, lenders often treat it like a single-family home. This can simplify financing and appraisal. If a townhome lives inside a condominium regime, condo-style lender restrictions may apply, so verify the legal structure.
Action steps for buyers
- Get preapproved before you tour.
- Ask your lender about condo and townhome project requirements.
- If you need FHA or VA financing, confirm whether the building or project is approved.
Lifestyle: privacy, maintenance, and amenities
Privacy and noise
Condos are usually stacked units, so there can be potential noise from above, below, and across the hall. Construction quality and insulation make a big difference. Townhomes are side-by-side and usually have private entries and garages, which can feel more private, but shared walls still mean some neighbor sound.
Maintenance and convenience
Condos fit buyers who want low-maintenance living and a lock-and-leave lifestyle. Exterior repairs, landscaping, and major systems are typically centralized. Townhomes can feel more like single-family living. Depending on the HOA, you may be responsible for the roof, exterior, and small yard, or the HOA may help with some items.
Parking, storage, and outdoor space
Many Denver condos come with assigned or deeded garage parking. Guest parking can be limited in urban buildings. Townhomes more often include a private garage, driveway, and extra storage, plus a small yard or patio. Street parking rules vary by neighborhood, so review signage and permits.
Amenities and community
Condos often offer amenities like gyms, concierge service, and shared rooftops. These raise dues but add convenience and value. Townhome communities may offer small parks or courtyards and HOA-hosted events. Decide how much you will actually use shared amenities versus wanting more private space.
Rules, pets, and short-term rentals
HOA rules commonly cover pet size and number, rental limits, and whether short-term rentals are allowed. Denver’s city regulations also govern short-term rentals and require licensing. Many HOAs prohibit or restrict short-term rentals in addition to city rules. Always check both the HOA documents and the city’s requirements before you assume you can rent.
Denver neighborhood context
Entry price and space tradeoffs
In central Denver, condos often offer a lower entry price for a prime location and walkable lifestyle. They can be great for first-time buyers who want to live near work or transit. Townhomes tend to be larger and can carry higher prices, especially in close-in neighborhoods where supply is limited.
Where condos cluster
Capitol Hill and Uptown feature many historic condos and apartment conversions, which can deliver value and charm. LoDo and Downtown offer high-rise options with luxury amenities and varied parking setups. Cherry Creek and Cherry Creek North include high-end condos with premium pricing based on proximity to shops and services.
Where townhomes shine
The Highlands and West Wash Park offer a strong mix of attached row-style townhomes and newer builds. Many provide private entries, garages, and a small yard or patio. These features often broaden appeal to a wider buyer pool at resale.
Block-by-block differences
Micro-markets matter in Denver. Two blocks can vary in price, amenities, and resale demand. Evaluate building quality, parking, HOA health, and the surrounding block to understand value and fit.
Resale outlook and value drivers
Owner occupancy and financing
Higher owner-occupancy can support more financing options for future buyers. That can stabilize values and make your property easier to sell. Ask the HOA for the current owner-occupancy percentage and any rental caps.
HOA financial health and building condition
Strong reserves and transparent governance are positives at resale. Older buildings may need envelope work, window updates, or elevator repairs, which can impact dues and assessments. Review recent capital projects, building inspections, and meeting minutes.
Parking, storage, and rental flexibility
Deeded parking and private storage are valuable in central Denver. Clear rental policies can widen the buyer pool, though caps can limit investor demand. Match the property’s rules with your goals to protect long-term value.
How to choose: a simple decision guide
Choose a condo if you want
- Low-maintenance living with exterior work handled by an association.
- Access to amenities like a gym, lobby, or rooftop.
- A lower entry price to live in a central, walkable area.
- A lock-and-leave lifestyle with simplified upkeep.
Choose a townhome if you want
- A more single-family feel with a private entry and garage.
- More storage plus a small yard or patio for pets or plants.
- Potentially fewer condo-style lending hurdles if fee simple.
- More control over your exterior and maintenance choices.
What to review before you offer
Documents to obtain
- HOA resale packet or estoppel certificate with budget, bylaws, reserve study, insurance master policy, minutes, current assessments, and owner-occupancy rate.
- Master insurance policy details, including what it covers and the deductible exposure for unit owners.
- Recent HOA meeting minutes for the last 12 to 24 months and any pending litigation.
- Building inspection reports and recent or planned capital projects such as roof, envelope, and elevator work.
Questions to ask
- Who maintains the roof, exterior walls, windows, and foundation?
- Which utilities are included in dues, and what amenities are covered?
- Current monthly dues, any planned special assessments, and the reserve fund balance.
- Owner-occupancy percentage and any rental or short-term rental rules.
- History of special assessments, structural repairs, or insurance claims.
- Master policy type and deductible amounts, and whether owners must carry deductible coverage.
- Parking details, guest parking rules, and enforcement.
- Pet policy, including size and number limits.
- For condos, whether the project is approved for common loan programs if you need them.
- For townhomes, the exact legal description and whether you own the roof, exterior, and lot.
Red flags to watch
- Low reserves compared to upcoming capital needs.
- Recent, repeated, or poorly explained special assessments.
- Ongoing litigation involving the association.
- High investor concentration in a condo project that could constrain financing options for future buyers.
- Incomplete insurance documentation or difficulty obtaining required HOA documents.
Your next steps
Every buyer’s tradeoffs are a little different. If you are comparing a high-rise condo in LoDo to a townhome in the Highlands, the right answer comes from clarifying what you want to maintain, how you plan to finance, and the HOA’s long-term health. A calm, step-by-step review of the documents and your lifestyle can make the choice clear.
If you want a steady, data-informed partner to help you weigh options in central Denver and inner-ring suburbs, reach out to Kathryn Tighe. Our team pairs warm guidance with strong negotiation and a clear process, so you can choose with confidence and move forward on the right home for you.
FAQs
What is the core difference between a condo and a townhome in Denver?
- Condos typically include ownership of the interior plus shared common areas, while townhomes often include fee simple ownership of the unit and land, though some Denver townhomes use condo-style structures, so always verify the legal description.
How do HOA fees for Denver condos compare to townhomes?
- Condo dues are often higher because they cover exterior upkeep, master insurance, and amenities, while townhome dues vary and can be lower when owners handle more exterior maintenance.
What insurance do I need for a Denver condo versus a townhome?
- Condo owners usually need an HO-6 policy for interior finishes and personal property, while many townhome owners need an HO-3 or HO-5 policy that covers the structure and lot, depending on HOA responsibilities.
How do condo lending rules affect Denver buyers?
- Many loans require condo projects to meet approval standards; buildings with high investor ratios, low reserves, or litigation may be ineligible for some programs, which can affect both your purchase and future resale.
Are short-term rentals allowed in Denver condos or townhomes?
- Denver requires short-term rental licensing and many HOAs restrict or prohibit short-term rentals, so you must check both city rules and the HOA’s governing documents.
Which has better resale in central Denver, a condo or a townhome?
- It depends on building quality, HOA health, owner-occupancy, parking and storage, and neighborhood demand; well-located, amenitized condos sell well, while townhomes with garages and small yards often appeal to a wide buyer pool.
