Dive Brief:
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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.
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The NAHB reported that townhouse starts totaled 24,000 in the fourth quarter, up from 22,000 starts in the third quarter.
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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%.
Dive Insight:
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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