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.Read More