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Townhome Construction is Booming

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Townhome Construction is Booming
Article by Daily Real Estate News | November 21, 2016

construction-a1Townhouse construction continued to make gains in the third quarter on a year-over-year basis. Starts of townhomes totaled 94,000, a more than 10 percent year-over-year gain in the third quarter of this year, Census data showed.

The market share of new townhouses was at 12.4 percent of all single-family starts in the third quarter, near the cycle high, the National Association of Home Builders reports in its analysis of the data. The townhome market reached its last peak in the first quarter of 2008, when it comprised 14.6 percent of total single-family construction.

NAHB predicts townhouse construction continue to make gains in the coming years, although with occasional ups and downs.

“The long-run prospects for townhouse construction are positive given the large numbers of home buyers looking for medium density residential neighborhoods, such as urban villages that offer walkable environments and other amenities,” the NAHB noted on its blog, Eye on Housing.

Source: “Townhouse Construction in the Third Quarter,” National Association of Home Builders’ Eye on Housing blog (Nov. 18, 2016); REALTOR® Magazine Online, Daily Real Estate News 112116

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