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Throughout the COVID-19 pandemic, home offices, gyms, and swimming pools took over home wish lists as families elbowed for extra room and the home became a primary space for entertainment. Two years later, the must-have home amenities of 2022 favor practical space in smaller homes, pushing homeowners to make the most of their living areas through flex rooms that can be transformed from bedrooms to offices to home gyms with ease.

In a tight housing market, buyers are struggling to find affordable homes with extra square footage, but flex spaces offer a convenient solution. Townhomes are also becoming more appealing to cash-strapped buyers in a market with very few affordable single-family houses, particularly in areas seeing an influx of new residents as a result of hybrid and remote work flexibilities.

“Stand-alone houses that come onto the market in good condition in desirable areas are typically priced high with bidding wars driving prices up even further,” says Robert Dietz, chief economist of the National Association of Home Builders. “But townhomes, which may or may not have yards and can be smaller than single-family homes, can provide a way into homeownership for first-time buyers.”

Builders are taking note. Townhouse construction jumped 38% through the third quarter of 2021, according to NAHB. To compare, construction on stand-alone, single-family homes grew just 23% during the same time period.

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