What Is a Stacked Townhouse?
Stacked townhouses are types of townhomes that has multiple units and combines the advantages of both townhouses and condos. Stacked townhouses, like traditional townhouses, connect at the side, but they also feature one-story or two-story homes stacked on top of each other to maximize living space. Each dwelling has its own entrance and private space, which eliminates shared lobbies typically found in condominiums. These properties can be part of a condo corporation or freehold.
Stacked townhouses are becoming more popular in densely populated cities that pose affordability challenges such as Toronto, Vancouver, and Montreal. Stacked townhouses offer the flexibility of being sold individually or rented out to tenants. As Toronto’s population and housing costs rise, more developers are constructing stacked townhouses for rental purposes. Building multiple units on one piece of land allows for more square footage at a lower price than similar-sized detached houses, townhouses, and condos.

Stacked Townhouse Vs Townhouse?
Stacked townhouses and townhouses exhibit their own distinct characteristics.
We’ve put together a list of key features for each townhouse type to help highlight the differences between traditional and stacked townhouses.
Stacked Townhouses
Townhouses
Do I Need Insurance on My Stacked Townhouse?
Insurance for a stacked townhouse can vary depending on the type of ownership. If the stacked townhouse is a freehold property, meaning you have ownership of both the property and land, it is important to have insurance coverage for both.
When a townhouse is owned as a leasehold property, there is no requirement for land insurance, but it may be necessary to get insurance for the structure.

Pros And Cons of Stacked Townhouses
Stacked townhouses offer various benefits that make them an attractive housing option. The pros and cons of investing in stacked townhomes for residential property investors can vary depending on the market and individual circumstances. It is important to consider each of the advantages and disadvantages before making a major property investment. Our teams compiled a list of pros and cons to stacked townhouses:

Are Stacked Townhouses a Good Investment?
Stacked townhomes offer a good investment opportunity because they provide the chance for profitable returns, whether they are sold as a primary residence or used as rental properties. Stacked townhomes are particularly popular among first time buyers because they offer the comfort of detached-home living and the convenience of a condo layout, all at an affordable price.
Consider the real estate market in the development area to thoroughly to determine if stacked townhouses are a worthwhile investment, considering factors such as current market trends and the average age and income of individuals in the region.
Related Article: Why In-law Suites & Multi-generational Homes Are Trending In Toronto
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Stacked townhouses bring more affordable housing to metropolitan areas. From first time home-buyers to people seeking rental properties, stacked townhouses make excellent investments. While maintenance fees may be a hassle, they are still more cost-effective than those associated with comparable townhouses, condos, and detached homes. If you’re in the market for a stacked townhouse in the Toronto or GTA area, we invite you to explore our Invest in Real Estate webpage. If you want to build new townhouses, check out our New Townhouse Developments page.