The Cape Townhomes development overlooking Soddy Lake is not yet complete, but the residents who've moved into the first units include a retiree looking for a fishing spot and a young family wanting a quiet street for their son to ride his bike.
That broad range of demographics is a hallmark of modern townhome living, say local real estate agents. Priced comparably to single-family homes and with the benefit of regular, outsourced maintenance, townhouses are finding broader appeal among homebuyers.
Though once associated with older couples looking to downsize, townhomes have become a popular choice "no matter what age group or stage of life you're in," says Wanda Hayton of The Source Real Estate Group. "They are pretty reasonably priced. They usually come with an HOA [homeowner association] so you don't have much upkeep to them, and there's someone to cut the grass and do the repairs. There's also a community feeling to it. It's like a small town within a town."
Townhouses, like row houses, are known in the real estate industry as single-family attached homes, but one of their common attributes — and a major source of appeal — is that many townhomes are multi-level units covering up to three stories.
In a review of census data, the National Association of Home Builders found that builds of townhouses had increased 16% in the third quarter of 2023 over the same period of 2022. On average, that number is the highest since 2007, according to a report at eyeonhousing.org.
Townhomes at the Gateway, under construction in East Ridge, is one such example. The 144-unit development is anchored by CHI Memorial Stadium, home of the Chattanooga Red Wolves, one of Chattanooga's two professional soccer teams.
"The whole idea is to have a development where you can live, you can eat, you can go to a game," says Scott Larson, director of sales for developer Star Community Builders. "It's a mixed-use development with residential and commercial interests, including restaurants and other businesses."
Each of the Gateway townhome units, averaging 2,000 square feet, offers three bedrooms, two-and-a-half baths and an oversized attached garage. Interior features include stainless-steel appliances and natural stone countertops. Amenities include an outdoor pool and a clubhouse equipped with a workout area, residential gathering space and offices.
Four buildings have been competed to date. Ten townhouses are currently available, starting at just under $400,000.
"The price point for these luxury townhomes is lower than a new single-family home in most instances and provides an owner equity and some upside in the real estate market that an apartment does not provide," Larson says.
Although detached single-family homes remain the clear first choice among buyers — 79% in 2023, according to the National Association of Realtors — townhouses were buyers' second preference, at 8%. Unlike condominiums, in which only the interior space is controlled by the owner, a townhouse purchase includes the interior, exterior and land it sits on.
A February search of the Multiple Listing Service in Chattanooga produced results for just over 100 townhouses, ranging in price from $235,000 (for a one-bedroom, 1,100-square-foot unit) to $2.7 million (for a five-bedroom, 7,500-square-foot option), both in downtown Chattanooga.
Cape Townhomes's 33 units are priced from about $350,000 to $400,000. Listing agent Jennifer Lively of Keller Williams Realty says the townhouse option is more affordable than most lakefront property, "which is out of reach for a lot of people. This development is where you can enjoy the lake, still be a part of being on the water and not have to pay the high price."
The two- and three-bedroom units have modern farmhouse exteriors, enclosed porches and front and back yards, along with lighted sidewalks and a covered community space with picnic tables and fire pits for residents to relax or socialize.
Interior finishes may be customized with a range of options, including granite countertops, high-end appliances and exposed beams. Lively says one of the biggest selling points is a finished bonus room over the garage that can be completed as an extra bed and bath or a walkout attic for extra storage.
"I've been in a lot of townhomes where there was zero storage," she says. "We wanted to make sure that someone could use that bonus room for any number of things."
The convenience of a monthly HOA agreement is especially attractive to buyers who travel, Lively says.
"They're looking for communities where the lawns are taken care of, and all they have to do when they're home is be at home," she says.