The market share of new townhouse starts is 12.4% as of the third quarter, close to the cycle high of 14.6%.

According to the most recent U.S. Census data on Starts and Completions by Purpose and Design, townhouse construction starts totaled 22,000 in the third quarter of 2016, and 94,000 townhouse construction starts occurred in the four quarters ending with the third quarter of 2016. This amounts to more than a 10% gain over the prior year’s total starts.

Based on a one-year moving average, new townhouses made up 12.4% of all single-family starts in the third quarter. This is close to the 14.6% share seen in the first quarter of 2008, which the National Association of Home Builders identifies as the peak market share of the last two decades.

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.

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