According to NAHB economist Robert D. Dietz, townhomes and multi-family units will be a growing source of income for the housing market in the near future.
“The townhouse market [is] often a source of supply for first-time buyers choosing new construction,” Dietz writes. Data from the NAHB showed that the pace of townhouse starts picked up at the end of 2014, coming in 12 percent higher than the final quarter of 2013.
“While the overall total of townhouse starts in 2014 (72,000) was only slightly higher than the prior year total, the post-recession trend has been one of growing market share of overall single-family starts,” Dietz says. “This will continue as more first-time buyers purchase new homes.”