Townhouse construction starts continue to rise, shooting up 12.8% in 2016 to 97,000 starts compared to 86,000 starts in 2015, according to a National Association of Home Builders’ analysis of Census Bureau starts and completions data.
The NAHB reported that townhouse starts totaled 24,000 in the fourth quarter, up from 22,000 starts in the third quarter.
New townhouses took a 12.4% share of single-family starts for the fourth quarter of 2016 on a one-year moving average, near their 2008 peak of 14.6%.
Despite losing market share during the recession, townhouse construction has rebounded to healthy activity levels in response to demand for walkable, medium-density urban communities that meet the needs of younger and active adult buyers alike.
Recent Census Bureau data shows that individuals under the age of 35 accounted for 34.7% of homeowners in the fourth quarter, down slightly from 35.2% in the third quarter. Builders are responding to this shift by building smaller, lower-priced townhouses and single-family homes.
On the West Coast, where steady home-price increases have made buying a property difficult for younger, cost-sensitive buyers, KB Home recently opened a development comprising 96, three-story townhome condominiums in Los Angeles. Meanwhile, Northside Management announced plans to deliver 28 townhomes in northwest Boise, ID.
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