First quarter 2026 data reveal softer conditions for townhouse construction volume as housing affordability challenges affect homebuyer demand.
According to NAHB analysis of the most recent Census data of Starts and Completions by Purpose and Design, during the first quarter of 2026, single-family attached starts totaled 34,000, down 21% from the first quarter of 2025. This was the weakest quarter since the first quarter of 2023.
Over the last four quarters, townhouse construction starts totaled 163,000 homes, down 7% from the prior four quarter period (175,000). Townhouses made up almost 16% of all of single-family housing starts for the first quarter of the year.
Using a one-year moving average, the market share fell back to 17.6%, after reaching an all time high in the third quarter of 2025 (18.7%).
Prior to the current cycle, 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. 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 are positive given growing numbers of homebuyers looking for medium-density residential neighborhoods, such as urban villages that offer walkable environments and other amenities. Where it can be zoned, it can be built.