Townhouse Share of Home Starts Stays at Record High
Townhouse construction remained elevated in the second quarter 2024 as demand for medium-density housing continues to be solid despite slowing for other sectors of the housing industry.
According to analysis by NAHB of U.S. Census data, 42,000 townhouses were started last quarter, an 8% increase over Q2 2023. Over the past four quarters, 174,000 townhomes were started, up 23% from the previous four quarters.
Townhouses made up almost 15% of single-family home starts in Q2 2024. But using a one-year moving average, the share of townhouses jumps to 17.2% in Q2 2024 for the second-straight quarter, an all-time high in the data series dating back to 1985.
Prior to the current cycle, the peak market share of townhouse construction was set during the first quarter of 2008, when the share reached 14.6% on a one-year moving average basis. Townhome construction had enjoyed steady growth in both real terms and in share from the early 1990s up until the housing crash of 2008.
“This is a form of housing construction that will continue to gain strength, as more first-time home buyers enter the market and as generational preferences shift to more walkable, medium-density locations,” wrote NAHB Chief Economist Dr. Robert Dietz more than a decade ago in a guest piece for U.S. News & World Report.
See more from Dr. Dietz in this Eye on Housing post.
Latest from NAHBNow
Sponsored Content
Apr 03, 2025
100 Builders Wanted: Join the Mission. Build for Profit. Build a Legacy.For years, Sound Capital has been dedicated to empowering builders to handle more projects, accelerate their pace, and innovate effectively. That is why Sound Capital is encouraging builders to see why 95% of its clients are repeat customers.
Material Costs
Apr 03, 2025
In Win for NAHB, Canadian Lumber Exempt from Trump’s Global Reciprocal TariffsThe tariff exceptions for Canada and Mexico amount to a major win for NAHB, but because of the complexity of the tariffs, builders should expect more volatility in pricing while companies work to understand and adjust to these new tariffs. NAHB will continue to advocate for lower tariffs on lumber and all other all building materials.
Latest Economic News
Economics
Apr 01, 2025
Private Residential Construction Spending Rises in FebruaryPrivate residential construction spending increased by 1.3% in February, rebounding from a 1.2% dip in January. The growth was largely driven by higher spending on single-family construction and residential improvements. On a year-over-year basis, the February report showed a 1.6% gain, indicating a modest growth in private residential construction spending during market uncertainties.
Economics
Apr 01, 2025
Soft Job Openings Estimate for ConstructionAfter a period of slowing associated with declines for some elements of the residential construction industry, the count of open construction sector jobs remained lower than a year ago, per the February Bureau of Labor Statistics Job Openings and Labor Turnover Survey (JOLTS).
Economics
Mar 31, 2025
Affordability Pyramid Shows 94 Million Households Cannot Buy a $400,000 HomeNAHB recently released its 2025 Priced-Out Analysis, highlighting the housing affordability challenge. While previous posts discussed the impacts of rising home prices and interest rates on affordability, this post focuses on the related U.S. housing affordability pyramid. The pyramid reveals that 70% of households (94 million) cannot afford a $400,000 home, while the estimated median price of a new home is around $460,000 in 2025.