Townhouse Starts See Steady Growth in Q1 2025

Townhomes are becoming a more popular option for homebuyers seeking smaller, more affordable housing. According to the National Association of Home Builders’ Eye On Housing blog, townhouse starts grew by 2% in Q1 2025 compared to the prior four-quarter period. As of Q1 2025, townhome starts totaled 43,000, bringing the yearly total to 175,000. Overall, townhouses accounted for 19% of single-family housing starts for Q1 2025.

Additionally, the market share of newly-built townhouses stood at 17.6% of all single-family starts in the first quarter, based on a one-year moving average. This is the highest level on record, dating back to 1985.

Prior to the current cycle, the peak market share for townhouse construction in the last two decades was 14.6%, reached during the first quarter of 2008 on a one-year moving average basis. This high point followed a fairly consistent increase in share that began in the early 1990s.