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March 4, 2022



Rising costs make the townhome product attractive for builders and buyers.

Townhome construction has surged in the last year or so. By the most recent numbers, townhomes now make up nearly 13% of all single-family starts and have notched a 38% uptick in just a single year.

And if you ask most experts, that trend will only continue as 2022 goes on.

As NAHB chief economist Rob Dietz explains, “NAHB expects the construction of townhouses to rise from 13% to higher than 15% of all single-family homes in the coming years.”

If that forecast rings true, it will mark a record for townhome construction, surpassing its previous 2008 peak of 14.6%.

It sounds like a bold prediction, but the conditions are ripe for townhomes to thrive. Scott Hawley, managing director at Kaplan Residential, expects similar numbers by as early as this year.

“It is no secret townhome construction had its most successful year in 2021, and I would not be surprised if 2022 beats last year’s metrics,” says Hawley, whose company pivoted to build-to-rent townhomes about five years ago. “Others are catching on.“

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