Shout out to Brooklyn! I sometimes take the Albany--Chinatown, NYC bus and visited Brooklyn a couple of months ago.
Alexander is right about townhouses mostly being in the suburbs of Albany. I used to live in one in Latham, which has a mall & movie theater that's currently being renovated. In downtown Albany, there are some new condos, incl. these: http://albanydowntowncondo.com/
Have you considered buying a multi-family house (2 to 4 units) in Albany? Rental demand is high there, and I've been looking at many of them for my buyer-investor clients.
Whether you're looking for a condo, townhouse, or multi-unit house, if you don't have an agent yet, check me out: http://www.coldwellbankerprime.com/Nina.Lee