Eye On Housing
According to NAHB analysis of the most recent Census data of Starts and Completions by Purpose and Design, townhouse construction posted significant gains during the second quarter of 2018. Townhouse construction is set for further expansion given the demographics of renters entering the for-sale market, as well as ongoing land constraints and the growth of demand for walkable neighborhoods.
Over the last four quarters (ending with the second quarter of 2018), townhouse starts totaled 116,000, 23% higher than the prior four quarters. Townhouses, or single-family attached housing, accounted for 36,000 starts during the second quarter of 2018 (compared to 25,000 in the second quarter of 2017). Using a one-year moving average, the market share of new townhouses stands at 13.1% of all single-family starts, a post-recession high.
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% of total single-family construction. This high point was set after a fairly consistent increase in the share beginning in the early 1990s.
The share for townhouse construction is expected to increase in coming years – with occasional ups and downs. The long-run prospects for townhouse construction are positive given large numbers of homebuyers looking for medium density residential neighborhoods, such as urban villages that offer walkable environments and other amenities.
Curious where these townhouses are being built. Is there a further breakdown regionally or by state?
In the second quarter, 17% were in the Northeast, 17% in the Midwest, 42% in the South, and 25% in the West.
Builders not making these projects accessible for all qualified buyers and limiting their market to only young and able body buyers. Lets expand the market and show respect for everyone.
The share for townhouse construction is expected to increase in coming years.
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