Townhouse Construction and the Great Recession

One of the impacts of the Great Recession was an interruption of the long-term growth trend in the construction of townhouses (attached single-family units) as a share of all single-family homes built. From 1990 to 2007, the share of townhouses constructed grew from 6% to 16% of single-family housing starts, as reported by the Census Bureau.

As of the first quarter of 2011, townhouse starts neared the record low (set in the first quarter of 2009), standing at a 9,000 non-seasonally adjusted starts rate. This is a decline of 87% from the peak rate of construction set in the second quarter of 2005.

This impact is perhaps unsurprising given the drags that exist on housing demand today, most importantly tighter lending requirements and high jobless rates that are holding back first-time homebuyers, who are more likely to purchase attached single family homes. Nonetheless, we expect the share of townhouses constructed to continue its long-term growth trend, as homebuyers of the future seek higher density, inner suburb locations and somewhat smaller homes.

About these ads

5 Responses to Townhouse Construction and the Great Recession

  1. [...] Home Builders Predict Townhouses Continue Long-Term Growth of Market Share Published July 14, 2011 Uncategorized Leave a Comment From Eye on Housing, the blog on which the National Association of Home Builders discusses economics and housing policy: “One of the impacts of the Great Recession was an interruption of the long-term growth trend in the construction of townhouses (attached single-family units) as a share of all single-family homes built. From 1990 to 2007, the share of townhouses constructed grew from 6% to 16% of single-family housing starts, as reported by the Census Bureau.  As of the first quarter of 2011, townhouse starts neared the record low (set in the first quarter of 2009), standing at a 9,000 non-seasonally adjusted starts rate. This is a decline of 87% from the peak rate of construction set in the second quarter of 2005.  We expect the share of townhouses constructed to continue its long-term growth trend, as homebuyers of the future seek higher density, inner suburb locations and somewhat smaller homes.”  Full post here. [...]

  2. [...] adding townhouses (single-family attached units), the share of the rental housing stock due to single-family homes is [...]

  3. [...] adding townhouses (single-family attached units), the share of the rental housing stock due to single-family homes is [...]

  4. Your graph is very accurate,it give us lot of information.

  5. “Townhouse Construction and the Great Recession | Eye on Housing” was a remarkable post and thus
    I was pretty happy to discover it. Thanks for the post-Shauna

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Follow

Get every new post delivered to your Inbox.

Join 7,144 other followers

%d bloggers like this: