Townhouse Construction Surged in 2021

Economics
Published

Townhouse construction jumped 28.1% in 2021, according to NAHB analysis of the most recent Census data. Medium-density construction lagged for much of 2020, with persistent affordability headwinds, and housing demand shifting to more suburban and exurban areas.

However, demand for medium-density neighborhoods returned as the economy more fully reopened during the past year.

During the fourth quarter of 2021, single-family attached starts totaled 39,000, which was 11.4% higher than the final quarter of 2020.

Over the last four quarters, townhouse construction starts totaled 146,000 units — 28% higher than the prior four-quarter total (114,000).

Using a one-year moving average, the market share of new townhouses increased to 13% of all single-family starts. This represents a rebound after recent declines.

Despite relative weakness in 2020, the long-run prospects for townhouse construction remain positive, given the growing numbers of home buyers looking for medium-density residential neighborhoods, such as urban villages that offer walkable environments and other amenities. This will be particularly true for prospective first-time buyers in high-cost metro areas.

NAHB Chief Economist Robert Dietz provides more in this Eye on Housing post.

Subscribe to NAHBNow

Log in or create account to subscribe to notifications of new posts.

Log in to subscribe

Latest from NAHBNow

Labor

Sep 04, 2025

Open Construction Jobs Rise in July

Running counter to the national trend, the number of open construction sector jobs increased from a revised 242,000 level in June to 306,000 in July.

Sponsored Content

Sep 03, 2025

Project Funding Crisis: How Top Builders Secure Money When Others Can't

Relying solely on a traditional lender is risky in today’s environment. Smart builders line up more than one source of funding. That way, projects stay on track, crews keep working, and reputations stay solid.

View all

Latest Economic News

Economics

Sep 03, 2025

Open Construction Jobs Rise in July

The count of open, unfilled positions in the construction industry increased in July, per the June Bureau of Labor Statistics Job Openings and Labor Turnover Survey (JOLTS) as the national labor market cooled.

Economics

Sep 03, 2025

House Price Appreciation by State and Metro Area: Second Quarter 2025

House price growth continued to slow in the second quarter of 2025, as the housing market faces mounting pressure from high mortgage rates, elevated inventory, and persistent economic uncertainty.

Economics

Sep 02, 2025

June Private Residential Construction Spending Edges Higher

Private residential construction spending inched up 0.1% in June, registering the first monthly gain after six consecutive declines.