Builders have started 123,000 new townhomes between Q3 2017 and Q3 2018, or 24% more starts than in the previous four quarters. 33,000 of these townhomes were started in the third quarter of 2018, up from 27,000 in the third quarter of 2017.
On a one-year moving average, new townhouses make up 13.8% of all single-family starts. This marks the highest share of townhome starts since before the recession. The last peak market share was set in Q1 2008 at 14.6% of all single-family homes built.
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 home buyers looking for medium density residential neighborhoods, such as urban villages that offer walkable environments and other amenities.
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