While single-family construction has exhibited some weakness in 2023, townhome construction recorded its best quarterly starts figure in 16 years, according to an NAHB analysis of Census Bureau data on Starts and Completions by Purpose and Design. According to the data, single-family attached starts totaled 43,000 in the third quarter, 16% higher than the third quarter of 2022.
This represents an acceleration over the last four quarters, during which townhouse construction starts totaled a solid 148,000 homes, which is 2% lower than the prior four-quarter period (151,000).
Using a one-year moving average, the market share of newly-built townhouses stood at 16.5% of all single-family starts for the third quarter. With the recent gains, the four-quarter moving average market share is the highest since 1985.
The long-run prospects for townhouse construction remain positive given growing numbers of homebuyers looking for medium-density residential neighborhoods, such as urban villages that offer walkable environments and other amenities.
