Townhomes Are Changing - Here’s Why More Buyers Are Taking a Second Look

Bianca Brunetti

General Manager Operations

For years, townhomes were often overlooked in favour of freestanding homes or apartments. Some buyers saw them as a compromise rather than a considered choice because they’re perceived to be tight on space, short on privacy, and light on liveability. 

That perception is now well and truly out of date. 

Across Melbourne and beyond, modern townhomes are redefining what medium-density living can look and feel like. From their smart architectural design and premium inclusions to their affordability and low-maintenance appeal, today’s townhomes are purpose-built for the way people actually want to live. And more buyers, including first homeowners, downsizers and investors alike, are paying attention. 

Smarter Design, Inside and Out 

The latest townhouse trends put a strong emphasis on practical, flexible design that makes the most of space. At Nostra Homes, we’ve seen a growing appetite for light-filled, multi-level homes that feel open and airy, with zoned living areas for greater privacy and flow. 

Modern townhomes no longer follow a cookie-cutter format. Instead, buyers are presented with thoughtful floor plans that integrate key features such as: 

• Multiple living zones across different levels 
• Ground-floor guest bedrooms or home offices 
• Open-plan kitchens with island benches and walk-in pantries 
• Seamless connections to private courtyards or balconies 
• Generous storage including walk-in robes, linen cupboards, and integrated garages 

These features mean buyers no longer need to sacrifice functionality or comfort when choosing a townhome. Whether you're hosting guests, working from home, or raising a family, there's a layout to match your lifestyle. 

Many townhomes are also designed with the future in mind. Energy-efficient insulation, LED lighting, Fisher & Paykel appliances, and solar provisions aren’t just extras, they’re part of the standard inclusions across many modern builds. With sustainability and smart living becoming the new normal, townhomes are well placed to meet that expectation. 

Affordability Without Compromise 

Why buy a townhome? For many buyers, it starts with price. Townhomes provide a more affordable entry point into sought-after areas where freestanding homes are often priced well above budget. 

The gap between the median price of houses and townhouses in metropolitan Melbourne continues to widen, making townhomes a practical alternative for buyers who want location, quality and lifestyle, without the million-dollar price tag. 

Because townhomes are built with efficient land use in mind, you’re also getting a home with lower upfront land costs, while still enjoying the benefits of multiple bedrooms, lock-up garages, and outdoor living spaces. 

At Nostra Homes, our Townhomes are positioned in high-demand areas including Werribee, Mickleham, and Kalkallo. These locations offer excellent connectivity, new infrastructure, and strong community development, giving buyers the opportunity to invest in emerging growth corridors. 

Location That Works Harder 

One of the key strengths of townhomes is where they are typically built. You’ll find them in masterplanned estates, infill developments close to transport, and revitalised neighbourhoods where the demand for housing is rising quickly. 

With the Victorian Government making zoning and planning changes to encourage medium-density housing in well-located suburbs, townhomes are increasingly found in places that put jobs, schools, shops, and parks within easy reach. 

In fact, the Victorian Housing Statement outlines a plan to build more townhomes and medium-density housing in established suburbs, reducing urban sprawl while improving housing choice. 

This policy direction is creating more opportunity for buyers who want convenience, connectivity, and capital growth, but don’t want to compromise on quality. 

Low Maintenance, Big Impact 

The appeal of townhomes isn’t just about design or price, it’s also about how they perform in everyday life. 

For many buyers, particularly busy professionals and downsizers, the thought of maintaining a large backyard or sprawling floorplan simply doesn’t make sense anymore. A townhome offers a smarter, low-maintenance solution. Smaller gardens, integrated storage, and quality finishes mean less time on upkeep and more time enjoying your home. 

And while you’re spending less time maintaining your space, you’re still enjoying all the benefits of homeownership: privacy, security, freedom to personalise, and long-term equity. 

For investors, this low-maintenance design means lower ongoing costs, fewer repairs, and consistent rental appeal. With tenants increasingly seeking energy efficiency, fast internet access, and proximity to public transport, townhomes are often easier to lease and manage than older freestanding properties. 

Designed for Modern Living 

Modern townhomes aren’t just a more affordable or practical option, they genuinely reflect the way people want to live. 

Younger buyers want quality finishes and open-plan layouts without waiting 12 months for a build to finish. Families want proximity to schools and parks, with the flexibility of multiple living areas. Downsizers want comfort and design without high-maintenance tasks. And investors want homes that attract long-term tenants, not long lists of repairs. 

Our current range of townhomes is designed to reflect these values. Every inclusion, every façade, and every layout is built to a high standard and located in a community where liveability comes first. 

This shift in design focus from cramped, narrow designs to spacious, light-filled, and liveable homes is one of the biggest reasons buyers are revisiting the townhome option. 

Government Backing and Future-Proofing 

Policy changes are also making townhomes more attractive. Recent state initiatives, including changes to the Victoria Planning Provisions, have streamlined the approval process for medium-density housing. These reforms are reducing red tape, shortening construction timelines, and encouraging higher-quality developments in suburban areas. 

For buyers, this means more availability, less uncertainty, and greater confidence in the longevity and resale value of a townhome purchase. 

Furthermore, programs such as the First Home Owner Grant (VIC) and First Home Guarantee can help eligible buyers access new townhomes with reduced deposits or stamp duty concessions. 

Building Your Future 

Modern townhomes are not what they used to be, and that’s a good thing. 

They’re better designed, better located, and better suited to the evolving needs of Australian homeowners. Whether you're looking for your first home, your next investment, or a home that matches your lifestyle without the stress of upkeep, a townhome could be the perfect fit. 

At Nostra Homes, we build townhomes with the same care, precision, and design focus we bring to every project. Our homes are built for real people with real goals, and we’re here to help you find the option that feels like home. 

Explore our full range of townhomes or contact our team to learn more about available floor plans, locations, and upcoming releases. 

The next generation of townhomes has arrived, and they’re well worth a second look.