Townhouse starts totalled 94,000 over the last year ending in June, a 5 percent drop from the previous four quarters. Also, there were 25,000 townhouse starts in the second quarter this year, down 14 percent from Q2 2016.
NAHB notes that townhouse construction starts have slowed relative to the rest of the building market. The market share of new townhouses is 11.7 percent of all single-family starts, a number that has fluctuated since reaching a peak of 14.6 percent in 2008.
Townhome construction is expected to increase in the near future.
The long-run prospects for townhouse construction are positive given large numbers of homebuyers looking for medium density residential neighborhoods, such as urban villages that offer walkable environments and other amenities.
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