Detached single-family construction activity has fallen over the last several quarters as homebuyers and builders alike struggle with rising costs. This trend is seeping into the townhome sector, according to data from the National Association of Home Builders. In Q-2 2026, single-family attached starts totaled 42,000, down 9% from the same time last year.

Townhome starts have fallen, but they're not far from their recent peak

Over the last four quarters, townhouse construction starts totaled 159,000 homes, which is down 12% from the prior four-quarter period when townhome starts reached 180,000. Even so, townhouses made up 17% of all single-family housing starts in Q-2 2026. This is down just slightly from the all-time high of 18.7% in Q-3 2025. 

Still, townhome prospects are positive

Townhome construction activity may be seeing a lull, but the NAHB analysis suggests that this is only temporary. As homebuyers continue to look for low-cost, walkable communities, medium density housing is expected to continue selling.