Townhouse Construction Declines Further in Q3 2020

Analysis provided by the National Association of Home Builders (NAHB) reveals that townhouse construction declined in Q3 2020 as buyers looking for new homes focused on less congested suburban, small town and exurban areas. During Q3, single-family attached starts (townhouses) totaled 31,000, which was -3% lower than the third quarter of 2019 (32,000). Over the last four quarters, townhouse construction starts totaled 105,000 units, -5% lower than the prior four quarter total (111,000). In retrospect the peak market share of the last two decades for townhouse construction was set during the Q1 of 2008, when the percentage reached 14.6% of total single-family construction. In the long-run, the NAHB believes the prospects for townhouse construction remain positive given growing numbers of homebuyers looking for medium-density residential neighborhoods, such as urban villages that offer walkable environments and other amenities.