Building townhomes has become a solution for builders to speed up the pace of construction while balancing rising land, material, and labor costs, delivering a more affordable product for first-time buyers especially.
According to the National Association of Home Builders (NAHB), townhouse construction is up, and is estimated to continue growing in the near-term. Townhome construction starts hit 123,000 annually in the third quarter of 2018, growing 24 percent from the prior four quarters. These structures currently account for 1.8 percent of all single-family housing starts, the highest share since the Great Recession, The Washington Post reports.
The NAHB says that townhouse construction is likely to expand more because they appeal to first-time buyers and because the demand for walkable neighborhoods is growing. In addition, townhouses require less land than single-family houses. Newly built townhouses, unlike those from earlier decades, typically have an open floor plan on the main level and a master suite with a private full bathroom. High-end townhouses sometimes have roof decks and elevators.
Advertisement
Related Stories
Townhomes
Q4 2023 Best Quarter for Townhouse Construction in 17 Years
Prospects for townhouse construction were bright during the final quarter of 2023, and long-run prospects for this housing type look positive, too
Design
Townhome Designs That Suit the Neighborhood (and the Neighbors)
These townhouses play well with the detached homes around them, while offering greater density
Build to Rent
Where Are Build-to-Rent Developments Seeing the Fastest Growth?
The build-to-rent sector is seeing major increases in townhome units and horizontal apartment communities, particularly in these red-hot rental markets