Townhouses have become a staple of the Kiwi property market, providing a practical and affordable housing option in urban areas. Yet, as housing trends shift and buyer preferences evolve, some may wonder - have Kiwis fallen out of love with townhouses?
Concerns around quality, location, and pricing have certainly shaped perceptions in recent times, but it’s important to take a closer look. Despite some reservations, well-built, well-located, and well-priced townhouses remain a smart choice for many New Zealanders
Why Townhouses Are Under Scrutiny
Over the years, townhouses have attracted a mix of opinions. While some view them as a versatile housing solution, others have raised concerns over build quality, space limitations, and the rise of poorly located developments.
One significant issue has been a perceived lack of quality. When urban sprawl accelerated in major hubs like Auckland, some developments prioritised quantity over quality, leading to fears of leaky homes and subpar finishes. Additionally, many older townhouses lacked the energy efficiency and modern design needed for today’s environmentally conscious buyers.
Pricing has also contributed to mixed perceptions. Townhouses were traditionally seen as a cost-effective choice, offering more for less. However, as demand grew, some buyers found themselves questioning whether smaller footprints justified rising prices.
Finally, location has played a role in the debate. Townhouses built in less desirable settings, far from public transit or key amenities, may have created the impression that newer builds aren’t meeting the market needs.
Despite these challenges, townhouses remain a vital part of New Zealand’s housing market. With careful consideration of key factors, they continue to deliver incredible value for buyers and investors alike.
What Makes a Smart Townhouse Investment?
Smart townhouse buyers know that success comes down to three key elements - good quality, great location, and fair pricing. When these factors align, townhouses offer a great solution for those seeking modern living in a highly competitive market.
1. Quality Matters More Than Ever
Today’s best townhouses are significantly better built than many of their predecessors. New construction regulations and a focus on sustainable development have improved building standards across the board. Modern designs feature durable materials, excellent insulation, and energy-efficient layouts that foster low-maintenance living. Unlike the older “shoebox” designs, current townhouses also make smarter use of space, offering better natural light and flexible living areas.
2. Location Is Still King
No matter how well a townhouse is built, its location remains crucial to its value. Buyers are increasingly drawn to developments situated near public transport hubs, schools, shops, and dining precincts. Proximity to amenities increases not only convenience but also resale value, ensuring that smartly located properties continue to attract interest down the line.
3. Affordability Reshapes the Market
For first-home buyers and investors alike, price is a critical factor. Compared to standalone homes, well-priced townhouses remain an attractive option, particularly in high-demand urban areas where affordable housing is scarce. Whether it’s a complete unit or an off-the-plan purchase, competitive pricing allows buyers to secure a comfortable home without overextending their budgets.
The New Generation of Townhouses
Today’s property market is ushering in a new era of townhouses, and the upgrades are impressive. Architects and developers have listened to feedback, addressing previous pain points with innovative solutions. Here are a few highlights:
These improvements make townhouses an especially compelling choice for buyers seeking long-term value, comfort, and convenience in one package.
Looking Ahead
The future of Kiwis and townhouses looks bright. With urban areas continuing to grow, compact and efficient housing remains a practical way to meet demand. Buyers who focus on quality, location, and affordability can feel confident making townhouses part of their property plans.
Ultimately, while some reservations around townhouses may linger, they remain a crucial piece of the Kiwi housing puzzle. For those who choose carefully, particularly when exploring new builds, townhouses are a valid solution - and an ideal opportunity to enjoy the best of modern, city-adjacent living.
Ready to explore if a townhouse is the right fit for your property portfolio?
Book a complimentary 15-minute call with Hamish Cowan, Founder and Director at equiti, to discuss your investment strategy and navigate the market with confidence.