Torn between a sleek condo in the North Loop and a townhome with a private garage near the lakes? You’re not alone. Choosing between a condo and a townhome in Minneapolis hinges on how you want to live, what you want to maintain, and how the property is structured and financed. In this guide, you’ll learn the key differences in ownership, costs, financing, lifestyle, and resale, plus the documents to review before you commit. Let’s dive in.
What “condo” and “townhome” mean in Minneapolis
Not all townhomes are the same, and not all condos look alike. In Minnesota, the words describe both building style and legal structure, which affects ownership, maintenance, insurance, and financing.
Ownership basics
- Condo: You own the interior of a defined unit plus a shared interest in common elements like the roof, exterior, halls, and land. An association manages those shared areas.
- Townhome: This is a building form, not a single ownership model. It may be fee simple, where you own the lot and structure, or it may be a townhome-style condo, where the association owns the exterior and land as common elements.
Why the legal structure matters
Who owns the exterior and land determines who maintains and insures them. It also shapes how assessments are levied, how dues are set, and what insurance you need. In Minnesota, common interest communities are governed by state statutes and consumer guidance from state regulators. You can confirm a property’s legal structure through Hennepin County parcel records.
Costs and financing: side by side
You should compare more than just the purchase price. The right choice balances dues, taxes, insurance, and the ease or complexity of financing.
Recurring costs to compare
- Monthly HOA or association dues and what they cover
- Property taxes and homestead status in Hennepin County
- Home insurance type and premiums
- Utilities that are not included in dues
- Special assessments for capital projects
HOA dues: what to review
Ask for specifics. Strong associations clearly define what dues cover and budget for future repairs.
- What do dues include: exterior maintenance, roof, building insurance, water, gas, trash, snow removal, common utilities, management
- Reserve health: current reserve balance and a recent reserve study
- Special assessment history: what was assessed, when, and why
- Management: professionally managed or self‑managed and how that affects service and costs
Taxes and homestead in Hennepin County
Property taxes are assessed at the parcel level. Fee‑simple townhomes typically receive a parcel tax bill similar to a single‑family home. Condominium units also have individual tax parcels but are part of a condo regime. If you qualify and occupy the home as your primary residence, homestead classification can reduce taxes. Confirm eligibility and file after closing.
Financing differences you may face
Condo loans often require a project review. Lenders look at the budget, reserves, owner‑occupancy ratio, litigation history, and assessment delinquencies. FHA and VA financing can require project‑level approval or a single‑unit approval process. Fee‑simple townhomes usually follow standard single‑family guidelines and may be simpler to finance, especially if a condo project’s finances are weak.
If you plan to rent in the future, check rental caps or restrictions. Investor limits can affect both financing and flexibility.
Insurance checklist
- Condo units: HO‑6 policy for interior finishes, personal property, and liability. The association’s master policy should cover the building shell and common areas. Verify deductibles and any special assessment coverage.
- Fee‑simple townhomes: Typically HO‑3 or HO‑5 policy that covers the exterior, roof, and structure unless the HOA assumes exterior maintenance. Match your policy to the actual responsibilities in the governing documents.
Lifestyle and maintenance tradeoffs
Beyond numbers, think about daily life. How you want to live will guide your choice.
Maintenance and convenience
Condos usually deliver low‑maintenance living. The association handles exterior work, landscaping, roofing, and snow removal, which is a big help during Minneapolis winters. Fee‑simple townhomes feel more like single‑family homes. You may handle exterior elements unless the HOA takes them on by contract. Townhome‑style condos can mirror condo maintenance if the HOA covers the exterior.
Privacy, noise, and layout
Condos, especially stacked high‑rises or mid‑rises, share walls, floors, and ceilings, so you may hear neighbors or hall traffic. Townhomes often have private entries and fewer shared walls. Many include a multi‑level layout that separates living and sleeping areas, which can feel more private.
Parking, storage, and outdoor space
- Condos: Often assigned parking in a shared garage, plus guest parking rules. Private outdoor space may be limited to a balcony. Shared amenities can include a rooftop deck or courtyard.
- Townhomes: More likely to have a private garage, driveway, patio, or small yard. That added storage and outdoor space can be valuable if you have gear or pets.
Pets and rentals
Rules vary by association. Many condo communities set pet limits and rental caps. Townhome HOAs can be more flexible, but you must confirm in the governing documents.
Minneapolis neighborhood context
Condos cluster in denser areas like Downtown, the North Loop, and Uptown where walkability, restaurants, and transit access stand out. Townhomes appear across Minneapolis, sometimes at the edges of downtown or in neighborhood developments where a private garage and patio are priorities.
Think about how you get around. If you rely on the METRO light rail or frequent bus routes, a central condo may suit you. If you want a quieter residential setting with a private garage and a little outdoor space, a townhome may be a stronger fit. In winter, covered parking and reliable HOA snow removal are quality‑of‑life upgrades.
Resale and market considerations
Your exit strategy matters as much as your entry. The right building and association can support value and widen your future buyer pool.
Building age, condition, and reserves
Older condo buildings can deliver character and location, but they may face bigger capital projects like roof, façade, window, or mechanical replacements. If reserves are underfunded, owners may face special assessments. Newer buildings can command premiums and sometimes higher dues due to amenities and professional management.
Owner‑occupancy and investor mix
Condo projects with very low owner‑occupancy rates can face financing constraints that reduce the buyer pool. Healthy reserves, clear budgets, and a stable occupancy mix support both financing and future resale.
Timing and negotiation
If a condo project shows red flags like low reserves, deferred maintenance, or pending litigation, pricing may reflect that risk. Fee‑simple townhomes sometimes appeal to a broader buyer pool since financing is more straightforward. Your strategy should reflect building‑level conditions and neighborhood demand.
Due diligence checklist
Gather documents early and read them closely. Your goal is to understand responsibilities, costs, and risks before you write the final check.
- Declaration, bylaws, articles, and CC&Rs
- Current operating budget and prior‑year budgets
- Most recent reserve study and current reserve balance
- Recent financial statements and any audit or CPA review
- History of special assessments and how they were funded
- Board and annual meeting minutes from the last 12–24 months
- Master insurance declarations page, including coverage limits and deductibles
- Rules and regulations, including pet, rental, parking, and alteration policies
- Management contract if professionally managed, plus any proposals for capital work
- Any available building inspection or engineer reports
Questions to ask:
- Who owns and maintains the roof, exterior, driveways, and landscaping?
- What exactly do monthly dues cover? What utilities are separate?
- How healthy are reserves? When was the last reserve study completed?
- Are any special assessments planned or under discussion?
- What is the owner‑occupancy percentage? Are there rental caps?
- Is there active or pending litigation involving the association?
- What does the master insurance cover and what is your deductible exposure?
- Is the condo project eligible for conventional, FHA, or VA financing? If not, is a single‑unit approval possible?
- Are neighborhood or zoning changes planned that could affect value?
When a townhome may fit best
You may lean toward a townhome if you want more autonomy over the exterior and layout. Many buyers also value the private entry, garage, and the feel of a single‑family home without the yard size or maintenance of a detached property.
Signs a townhome suits you:
- You want a private garage, driveway, or patio for storage and outdoor living
- You prefer fewer shared walls and a multi‑level layout
- You are comfortable managing some exterior items or paying an HOA that does
- You value a neighborhood setting over high‑rise amenities
When a condo may fit best
A condo shines when you want low‑maintenance living close to dining, culture, and transit. Dues often cover exterior care, snow removal, and shared systems so you can focus on your day.
Signs a condo suits you:
- You want a lock‑and‑leave lifestyle
- You value walkability and access to urban amenities
- You prefer professional building management and building amenities
- You plan to budget predictable dues rather than sporadic exterior work
The bottom line
In Minneapolis, “condo” and “townhome” are about both lifestyle and legal structure. Focus on what you want to maintain, how you plan to finance, and the strength of the association. Then verify the details in the documents. If you want a focused, private process with clear guidance, we are here to help you compare options by neighborhood and building, line by line.
Ready to discuss which path fits your life and your numbers? Begin your curated real estate experience with Hays + Baker Real Estate.
FAQs
What is the main legal difference between a condo and a townhome in Minnesota?
- A condo is ownership of a unit’s interior plus shared common elements, while a townhome is a building style that can be fee simple or condo‑style. The legal structure controls maintenance, insurance, and assessments.
How do HOA dues differ for Minneapolis condos and townhomes?
- Dues vary by property. Condos often include exterior, roof, common insurance, and snow removal. Fee‑simple townhomes may have lower dues if fewer services are included, or comparable dues if the HOA covers exterior work.
Are townhomes always easier to finance than condos in Minneapolis?
- Not always. Fee‑simple townhomes usually follow single‑family guidelines. Condos can require project approvals and stronger budgets, which can complicate financing if those standards are not met.
What insurance do I need for each property type?
- Condo owners typically carry an HO‑6 policy for interiors and personal property, while the association insures the building shell. Fee‑simple townhome owners usually need an HO‑3 or HO‑5 policy that covers the structure and exterior.
What documents should I review before buying a condo or townhome?
- Review the declaration, bylaws, CC&Rs, budgets, reserve study, financials, meeting minutes, master insurance, rules, assessment history, and any litigation disclosures.
Where are condos and townhomes most common in Minneapolis?
- Condos cluster downtown and in denser neighborhoods like the North Loop and Uptown. Townhomes appear across the city, often in neighborhood developments and near the edges of downtown.
Do associations in Minneapolis limit rentals or pets?
- Many do. Rental caps and pet policies vary by association. Always confirm rules in the governing documents before you buy.