Townhouse construction continued to outperform other building sectors during the third quarter of 2018, according to National Association of Home Builders analysis of the most recent Census data of Starts and Completions by Purpose and Design. Townhouse construction is set for further expansion given the demographics of renters entering the for-sale market, as well as ongoing land constraints and the growth of demand for walkable neighborhoods.
Over the last four quarters (ending with the third quarter of 2018), townhouse starts totaled 123,000, 24% higher than the prior four quarters. Townhouses, or single-family attached housing, accounted for 33,000 starts during the third quarter of 2018 (compared to 27,000 in the third quarter of 2017). Using a one-year moving average, the market share of new townhouses stands at 13.8% of all single-family starts, a post-recession high.