Both a townhome and a townhouse have something in common. First, as a place to live, they are individual houses. They are placed side-by-side, where one or two walls of each house are shared between adjacent homes. A second way in which these two buildings are similar is that they must be built not more than a three - storey buildings due to the Building Code (Regulation of Ministry of the Interior) but an appropriate choice depends on price, utility space, and design.