Given the small portion of the Manhattan housing market that consists of townhouses, it is surprising to see the incredible level of attention they receive in the media and the city's real estate circles. 

Indeed, there are less than 3,000 townhouses on Manhattan, and only 135 of them were sold last year.  So, what separates the townhouses from the luxury condominiums and co-ops that line so many of New York City's streets?

Privacy is often the first answer.  Unlike a larger building shared with numbers of other residents, most townhouses are single family units that allow the owners the largest degree of privacy possible in an urban setting. 

Secondly, the process of purchasing a townhouse does not include the arduous task of dealing with the often difficult co-op boards.  Likewise, once the deed is signed, the townhouse can be rented, renovated and altered at the owner's will, just like a normal house.

Looking at townhouses from a financial perspective, a townhouse that requires relatively little repair is usually a great investment.  A study done by the high end New York City appraisal firm, Miller Samuel, reports that townhouses grew about 210% in value from 1994 to 2003.  This is compared to a mere 90% rise in luxury condos and co-ops over the same time period.  Furthermore, a more recent study completed by BrownHarrisStevens showed that townhouses on the East Side and in Northern Manhattan grew in value 31% and 42%, respectively, over a one year period  from 2006 to 2007.

The above statistics on profitability should be tempered with the fact that townhouses almost always carry higher annual bills for repairs and services.  That being said, unless a townhouse is particularly dilapidated, these bills are usually a relatively small portion of the total value of the house. 

The last, most famous advantage of townhouses is the prestige associated with them.  Owning a townhouse is a statement not just of architectural taste but of the financial success one has enjoyed in today's cut throat world.  Unlike most symbols of wealth, even if it is used just as a symbol, it is nonetheless a mature, sophisticated symbol.

Simply put, the townhouse is the most prestigious type of New York City real estate.  Mayor Bloomberg prefers his townhouse to the Mayoral Mansion.  Celebrities dote publicly over finding the perfect townhouse.  Like it or not, owning a townhouse will give your reputation a certain grandeur that it otherwise would probably not have.