Townhouse Market Attracting More Buyers | Realtor Magazine
Townhouse construction continues to post gains as home shoppers are lured to the sector. Single-family attached housing comprised 26,000 of total housing starts during the third quarter of 2017, according to Census data. That is 18 percent higher than a year prior, the National Association of Home Builders reports in its analysis.
The share of new townhomes now stands at 11.8 percent of all single-family starts, NAHB reports. Still, the peak market share for townhomes over the past two decades was in the first quarter of 2008. At that time, the share reached 14.6 percent of total single-family construction.
During the Great Recession, the townhome sector saw a sharp drop in demand. But that is now turning around and expected to continue, builders predict.
“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,” says NAHB Chief Economist Robert Dietz.