OHA Market Update Series - Oct 15,2025
National: Over the past decade, both condos and townhouses have proven to be strong paths to building equity—each thriving in different markets depending on affordability and demand. The key for buyers is understanding which option best fits their lifestyle, goals, and local market conditions.
Local: Austin’s HOME ordinance is reshaping the city’s housing landscape by allowing more, smaller, and more affordable homes to be built on existing lots. Projects like Ash Creek Homes’ Drew Lane community show how thoughtful development can help bring attainable housing back to Austin’s neighborhoods.
Intrigued? Keep reading.
(4 minute read)
National Real Estate Update
Housing Trends, Interest Rates, and Market Forecasts
Condo vs. Townhouse: Which Builds More Wealth Over Time?
If you’ve been keeping an eye on Austin’s housing market—or really any growing city—you’ve probably asked yourself the question: Should I buy a condo or a townhouse?
It’s an important question. Both offer more approachable price points than single-family homes, and both can build serious equity over time. But as a new report from Realtor.com highlights, how much wealth you build over a decade depends less on the property type—and more on where and how you buy.
Over the last ten years, single-family homes appreciated about 87% nationwide, townhomes followed closely at 86%, and condos weren’t far behind at 82%. That means whether you chose a sleek downtown condo or a cozy townhouse with a bit of yard, your investment likely grew a lot.
But here’s where it gets interesting: appreciation trends look very different depending on the region.
In more affordable areas (like much of the South and Midwest), condos have actually outperformed townhouses.
In higher-cost markets (like the Northeast and West), townhouses have taken the lead—thanks to that “single-family feel” that today’s buyers crave.
The takeaway? Location still rules everything.
Townhomes tend to build equity a little faster because you own the land beneath your feet—and land is what appreciates most reliably over time. They also often come with lower HOA fees and attract a wider range of buyers at resale.
Condos, on the other hand, shine in dense urban settings where walkability, amenities, and convenience drive demand. They’re a powerful stepping stone for first-time buyers and downsizers who want homeownership without heavy upkeep.
At the end of the day, both can be smart paths to long-term wealth. The key is understanding your goals, your lifestyle, and your local market.
In Austin, we’re seeing a fascinating blend of both worlds: townhome communities rising in East Austin and South Congress offering that “house-like” feel, while downtown condos continue to attract those who value location and lifestyle above all. Each plays a role in creating opportunity for buyers ready to invest in their future.
My advice?
Don’t get stuck trying to predict which property type will “win” over the next decade. Instead, focus on finding a home that fits your life today—and a strategy that helps your investment grow tomorrow.
If you’re curious which Austin neighborhoods are best for condos or townhomes right now—or wondering what could build the most equity for you—let’s chat.
🏡 Reach out anytime and let’s start mapping your path to homeownership and long-term wealth.
Austin Area Real Estate & Community Update:
Market Trends, Local News, and Neighborhood Insights
Building a More Affordable Austin: What the HOME Ordinance Could Mean for Our City’s Future
Austinites have long since been asking: How do we bring affordability back to the place we love?
That’s exactly what the City of Austin set out to tackle with the HOME Ordinance — short for Home Options for Mobility and Equity. It’s a mouthful, but at its heart, it’s a plan designed to bring more attainable housing to the city we love by giving builders and homeowners the flexibility to create smaller, smarter, and more efficient homes on existing lots.
And now, we’re starting to see what that looks like in action.
A New Kind of Neighborhood
Down a quiet road in South Austin, Ash Creek Homes is putting the HOME ordinance to the test with a community called Drew Lane — a collection of 28 detached homes on just 10 residential lots.
Before this ordinance existed, that same piece of land would have supported about 20 homes priced around $600,000 to $700,000 each. But under the new rules, Ash Creek was able to design more efficient lots and bring those prices down to the $400,000 range — while keeping every home detached, modern, and thoughtfully built.
That’s a big deal.
The HOME ordinance allowed them to triple their land efficiency, share costs across more homes, and ultimately pass the savings on to buyers — the kind of change that could start to shift our city’s affordability conversation from “if” to “how.”
Why It Matters
Affordability isn’t just about prices — it’s about access, community, and possibility. It’s about creating neighborhoods where teachers, first responders, young families, and long-time Austinites can all find a place to belong.
As local builders like Ash Creek Homes and Carr Residential experiment with these new tools, they’re uncovering creative ways to use Austin’s existing land more efficiently. They’re proving that with the right policies and partnerships, we can grow smarter — not just bigger.
Sure, there are still challenges ahead — from high city fees to code contradictions that need cleaning up. But this is how meaningful change begins: one project, one ordinance, one conversation at a time.
The Bigger Picture
What’s inspiring about this moment is the sense of collaboration behind it. Developers, city leaders, and homeowners alike are coming together to rethink what’s possible within Austin’s city limits.
And while the Drew Lane project might just be one neighborhood, it represents something much larger — the belief that Austin’s housing story doesn’t have to be one of exclusion and rising costs, but one of creativity, community, and balance.
Let’s Keep the Conversation Going
As a real estate professional who loves this city deeply, I believe this kind of innovation is part of what Austin needs in certain areas — and it’s something we should all be paying attention to. Whether you’re a first-time homebuyer, a long-time homeowner, or just someone who wants to see a more inclusive Austin, understanding how policies like the HOME ordinance shape our market is key.
If you’d like to stay in the loop on how the HOME ordinance and other housing initiatives are reshaping Austin — and what that could mean for your next move — let’s connect. Because together, we can help shape the future of this city we call home.
Jennifer Carey
Realtor and Agent Success Manager at Open House Austin, real estate investor, and renovation enthusiast with Wimberley Airbnbs. She loves mid-century modern design, hiking Austin with her dogs, yoga and pilates, and has been enjoying gardening at her new home in East Austin🎶✨
