Townhouse Construction Slows

2022-08-17T08:16:05-05:00

By Robert Dietz on August 17, 2022 • According to NAHB analysis of the most recent Census data of Starts and Completions by Purpose and Design, during the second quarter of 2022 single-family attached starts totaled 38,000, which is 9.5% lower than the second quarter of 2021. Nonetheless, over the last four quarters, townhouse construction starts totaled 148,000 units, 7% higher than the prior four quarter total (138,000). However, these totals will slow in the quarters ahead as the overall building market slows. Using a one-year moving average, the market share of newly-built townhouses decreased to 12.5% of all single-family starts. This represents a slight weakening of market share after recent gains for medium-density housing demand. 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%, on a one-year moving average basis, of total single-family construction. This high point was set after a fairly consistent increase in the share beginning in the early 1990s. The long-run prospects for townhouse construction remain positive given growing numbers of homebuyers looking for medium-density residential neighborhoods, such as urban villages that offer walkable environments and other amenities. This will be particularly true for prospective first-time buyers in high cost metro areas. Related ‹ Single-Family Built-for-Rent Construction SurgingTags: economics, home building, housing, single-family, townhouse, townhouses