Townhouse Construction Gains Momentum

Year-over-year improvements in townhouse construction continued in the third quarter of 2024, as demand for medium-density housing remained strong despite a slowdown in other sectors of the building industry.

According to NAHB’s analysis of the most recent Census statistics on Starts and Completions by Purpose and Design, single-family attached starts totaled 47,000 in the third quarter of 2024, matching the highest quarterly tally for townhouse development since mid2006.

Over the last four quarters, townhouse development starts reached 177,000 residences, which is 20% more than the previous four-quarter period (148,000).

Townhouses accounted for 18% of single-family housing starts in the third quarter of this year, a data series high.

Using a one-year moving average, newly-built townhouses accounted for 17.4% of all single-family starts in the third quarter.

With the recent advances, the four-quarter moving average market share remains the greatest on record, dating back to 1985.

Prior to the current cycle, the top market share for townhouse construction over the last two decades was achieved in the first quarter of 2008, when the proportion hit 14.6% on a one-year moving average basis.

This high point was reached following a reasonably constant growth in the share starting in the early 1990s.

Given the growing number of purchasers looking for medium-density residential districts, such as urban villages with walkable environments and other amenities, townhouse construction has a bright future.

It is possible to build anywhere that is zoned.

[Read more about this topic on Eyeonhousing.org]