Rebound for Townhouse Construction

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According to NAHB analysis of the most recent Census data of Starts and Completions by Purpose and Design, townhouse construction expanded to a 2.5 year high during the final quarter of 2020. As housing demand has shifted to more suburban and exurban areas and housing affordability headwinds persist, medium-density construction initially lagged. However, a strong final quarter led to roughly flat 2020 total volume.

During the fourth quarter of 2020, single-family attached starts totaled 34,000, which was 36% higher than the fourth quarter of 2019 (25,000). Over the last four quarters, townhouse construction starts totaled 113,000 units, 3% higher than the prior four quarter total (110,000).

Using a one-year moving average, the market share of new townhouses increased to 11.4% of all single-family starts.

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.

Over the near-term, townhouse construction is likely to lag the overall building market, as telecommuting allows people to live further from urban cores in less dense neighborhoods.

However, the long-run prospects for townhouse construction remain positive given growing numbers of homebuyers looking for medium-density residential neighborhoods, such as urban villages that offer walkable environments and other amenities, while seeking to avoid high-density communities that depend on mass transit and elevators in the wake of the virus-related lockdowns of the spring of 2020.



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  1. City View Heights Development has land available for town homes, apartment, multi family housing unit in Colorado. Please call us, just look up City View Heights Development in Colorado. Diane S.

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