Construction of New Townhomes Expected to Continue Upward Trajectory
The share of new construction townhomes grew 23 percent over the last four quarters ending in June 2018, and accounted for 13.1 percent of all new single-family homes, a post-recession high.
Construction for single-family attached homes is predicted to grow over the next several years, as more renters shift toward buying homes, demand grows for walkable communities, and land availability remains tight, according to the National Association of Home Builders. "The long-run prospects for townhouse construction are positive given large numbers of homebuyers looking for medium density residential neighborhoods," writes NAHB chief economist Robert Dietz.
Over the last four quarters (ending with the second quarter of 2018), townhouse starts totaled 116,000. Townhouses, or single-family attached housing, accounted for 36,000 starts during the second quarter of 2018 (compared to 25,000 in the second quarter of 2017). The peak market share of the last two decades for townhouse construction was set during the first quarter of 2008, when the percentage reached 14.6 percent of total single-family construction. This high point was set after a fairly consistent increase in the share beginning in the early 1990s.