According to NAHB analysis of the most recent Census data of Starts and Completions by Purpose and Design, during the first quarter of 2022 single-family attached starts totaled 36,000, which is 16% higher than the first quarter of 2021. Over the last four quarters, townhouse construction starts totaled 152,000 units, 25% higher than the prior four quarter total (122,000).
Using a one-year moving average, the market share of new townhouses increased to 13.4% of all single-family starts. This represents a rebound for market share after a recent, covid-related declines for medium-density housing demand.
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%, on a one-year moving average basis, of total single-family construction. This high point was set after a fairly consistent increase in the share beginning in the early 1990s.
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. This will be particularly true for prospective first-time buyers in high cost metro areas.
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Single family homes are still very much desired by many homebuyers in rural areas. Townhomes will bring more income but we need homes for families.
It appears developers are moving away from single family detached homes due to cost. I don’t see this as a positive move for all areas in this country.
Townhomes are great for some but not for all. Lets work on fixing the problem and bring back home ownership, its still the American dream.