townhome construction

With home inventory in short supply and prices continuing to rise, more first-time buyers are turning to townhomes to ease their way into homeownership. this has not gone unnoticed in the building development industry as new townhome construction was up 38 percent in the 3rd quarter of 2021 while single-family home construction increased by 23 percent.

Younger homeowners – often without children – are attracted to townhomes because not only are they less expensive but many are built within easy walking distance of urban amenities.

While townhome construction remains low – currently at 11 percent of all single-family units – the National Association of Home Builders is expecting the share to increase, although probably not reaching the 14.6 percent peak of 2008.

The Association attributed the current low production to the reduced level of first-time buyers but noted that long-term prospects for townhome construction remained strong there continued to be a market for home buyers in “medium density residential neighborhoods, such as urban villages…”