Townhouse Construction Continues to Expand in Q2

According to the latest National Association of Home Builders (NAHB) analysis of the most recent Census data of Starts and Completions by Purpose and Design, single-family attached starts totaled 42,000 in Q2, 8% higher than 2023Q2. Townhouses made up almost 15% of single-family housing starts in Q2.

Over the last four quarters, townhouse construction starts totaled a strong 174,000 homes, which is 23% higher than the prior four-quarter period (142,000 starts).

Using a one-year moving average, the market share of newly built townhouses stood at 17.2% of all single-family starts in Q2. With recent gains, the four-quarter moving average market share remains at the highest on record (going back to 1985).

According to NAHB, 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, NAHB said.