August 23, 2024
mwoolley_specialevents@tbba.net
The latest housing starts report reflects a significant dip across the nation, but one sector continues to thrive: townhome construction.
The National Association of Home Builders analyzed the latest Census Bureau data and drew some favorable conclusions about townhome construction. During the second quarter of 2024, single-family attached starts totaled 42,000, which is 8% higher than the second quarter of 2023.
Over the last four quarters, townhouse construction starts totaled a strong 174,000 homes, which is 23% higher than the prior four-quarter period (142,000). Townhouses made up almost 15% of single-family housing starts for the second quarter of the year.
The latest numbers reflect a trend that’s percolated for years. Using a one-year moving average, the market share of newly-built townhouses stood at 17.2% of all single-family starts for the second quarter. That’s up from the 13 percent number of just a few years ago, and the current share stands as the highest since data began being tracked in 1985.
For builders, the popularity lies in market factors. According to buildersonline.com, townhomes are more economically feasible, especially given the higher cost of lumber and material and ongoing inflation.
The blog also noted that the price point for sale tends to be lower than single-family homes, which allows for the construction of more units. The design also allows builders to build with density on smaller properties. Vertical designs maximize space in urban areas and serve as an amenable compromise between single-family homes and high-rise apartments in suburban areas.
And, experts say, rental townhouses yield a profit faster than traditional apartments.
For consumers, the appeal includes several factors that give it an edge when compared to single-family homes: greater efficiency, easier to maintain and lower costs. The Azibo.com blog also notes that townhomes have broad appeal, attracting single families, young families, and downsizing retirees.
Townhomes can be built with affordability in mind. The city of St. Petersburg greenlit a new $19 million project earlier this year that will deliver 24 subsidized townhomes.