Tuesday
September 23, 2014

NAHB: Townhouse Market Remains Mostly Flat

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NAHB: Townhouse Market Remains Mostly Flat

The lower share of first-time home buyers is likely the main culprit behind the flat-lining of the nationwide townhome market, according to the National Association of Home Builder’s Eye on Housing blog.

Townhome Trends:

The market share of townhouse stands at about 10.8 percent of all single-family starts, down from its peak of 14.6 percent of starts that was reached in the first quarter of 2008, according to an analysis of Census data by the National Association of Home Builders.

Townhouse construction held mostly flat in the second quarter of this year, with single-family attached starts totaling 19,000 in the quarter, the same level from a year ago, according to NAHB.

“Despite the drop in market share during the Great Recession, I expect the share for townhouse construction to increase in coming years – with occasional ups and downs,” notes Robert Dietz, NAHB’s vice president for market analysis, on NAHB’s Eye on Housing blog. “The prospects for townhouse construction over the long run are positive given large numbers of home buyers looking for medium density residential neighborhoods, such as urban villages that offer walkable environments and other amenities,” Dietz notes.

Source: “Townhouse Market Flat,” National Association of Home Builders’ Eye on Housing blog (Aug. 22, 2014)