Market DataNAHBNewsletter

Townhouse Construction Reaches Record High

The National Association of Home Builders (NAHB), reports in the second quarter of 2025 townhouse construction increased 9% on a year-over-year basis. According to their data going back t0 1985, this is the highest on record gain in the market share.

Townhomes are considered part of the “missing middle” in types of housing alongside duplexes and other small multifamily properties. This form of housing expands the number of units built and provides units for a wide variety of price points

Over the last four quarters, townhouse construction starts totaled a strong 179,000 homes, which is 3% higher than the prior four-quarter period (173,000). Townhouses made up 17% of single-family housing starts for the second quarter of the year.” According to NAHB Chief Economist Dr. Robert Dietz. 

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