Townhome Sales Outpace Condos in South Chicago Suburbs

CHICAGO, ILLINOIS - There’s a real estate truth that remains evident in every market, no matter what the environment: People will always need a place to live. And home ownership has long been a essential part of the American Dream.

What has changed is the variety of homes out there. While there will always be a market for single family houses, the townhome market has also taken off in the Southland. In fact, the market for townhomes in this region may be outpacing that for standalone houses.

Ed Kagan of Kagan Real Estate in Worth said many of his clients look at both types of housing, and many choose townhomes for a variety of reasons.

“It’s not uncommon for first-time homebuyers, single people or young couples to choose a townhome,” he said. “Many members of the older generation are interested as well, especially in ranch style townhomes.”

Though the two-story style remains the more common style of townhome development, Kagan said more and more styles are coming on the market, an advent designed to appeal to buyers in all stages of life.

With the gradual aging of the baby boomer generation, ranch style townhomes often offer a perfect fit for senior citizens.

“I’m a member of that generation, Kagan said. “I life in a split level with a basement, and my office happens to be attached to it. If that weren’t the case, I’d probably be in the market for a ranch townhome.

“Many older people don’t want to worry about exterior maintenance, and many don’t want stairs.”

At the same time, two-story townhomes are still very popular because they offer the room and feel of a single family house.

“People like the separation of the bedrooms from the family room on the main level,” he said. “That gives it more of a house feel.”

But regardless of the floor plan, one of the biggest assets of townhome living is not having to take care of the exterior maintenance, Kagan said. And it’s not just older people and singles who prefer to let others handle the mowing and shoveling.

“Career-oriented people may not have the time or desire to take care of a yard,” Kagan said. “It’s just a matter of what you prefer.”

The ability to defer outside maintenance chores like lawn mowing and snow shoveling does come at a cost however. Most townhome communities charge an additional fee for such services, beyond taxes and other typical fees incurred by single family homeowners.

“Another drawback for some is that there is no yard,” Kagan said. “That’s a drawback for some people, especially those with kids. But for others, it’s an advantage.”

An indicator that more and more people are moving away from yard maintenance chores is the fact that townhome sales remain strong in a soft real estate market, Kagan said. Looking at townhome sales in the last three months in Oak Lawn, Orland Park and Tinley Park, 141 townhomes have sold. That puts sales of townhomes well ahead of sales of condominium units, another option for people who don’t want to handle exterior maintenance.

“About 75 percent of the townhome and condo unit sales have been townhomes,” in the last three months in those three communities, Kagan said. “So they are quite popular.”

While townhome owners typically share one or two walls with their neighbors, Kagan said municipal codes usually call for soundproofing in the construction, so townhome residents usually don’t have to contend with noise from neighbors, at least as much as condominium owners who also may have to contend with neighbors living above and below them.

Another asset of townhomes, especially when compared to single family homes, is price. Kagan said townhomes typically range in price from $200,000 to $400,000, though there are some high-end developments that cost more. But many times, the costlier townhome communities offer special amenities, such as clubhouse privileges, swimming pools and tennis courts.

Kagan expects the market for townhomes in the Southland to continue to grow, especially as infrastructure, such as the recently completed Interstate 355 south extension, continues to make the south suburbs an attractive place to live.

Townhome sales outpace condos in south suburbs
BY PAUL EISENBERG | SouthtownStar