Townhouse Construction Growth Continue

Year-over-year improvements in townhouse construction continued in the second 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 study of the most recent Census statistics on Starts and Completions by Purpose and Design, single-family attached starts totaled 42,000 in the second quarter of 2024, up 8% from the second quarter of 2023.

Over the last four quarters, townhouse development starts reached 174,000 dwellings, a 23% increase over the previous four quarters (142,000).

Townhouses accounted for over 15% of single-family dwelling starts in the second quarter of the year.

Using a one-year moving average, newly-built townhouses accounted for 17.2% of all single-family starts in the second 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]