Townhouse Construction in Q2 Remains Weak

A closer look at the U.S. Census Bureau’s data of Starts and Completions by Purpose and Design, by the National Association of Home Builders (NAHB) reveals that townhouse construction declined during the second quarter of 2020. When compared to all of the other sectors in the report, townhouse construction was weaker than the overall building market. The result of housing demand shifting to more suburban and rural areas and persistent housing affordability headwinds. 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% of total single-family construction. This high point was set after a fairly consistent increase in the share beginning in the early 1990s. Over the last four quarters, townhouse construction starts totaled 106,000 units, -6% lower than the prior four quarter total (112,000).