Townhouses are making a comeback in residential real estate. Buyers searching for affordability are showing more interest in townhomes, particularly first-time home buyers.

Townhouse construction climbed 28% in 2021, according to data from the National Association of Home Builders. Demand for medium-density neighborhoods is rebounding after lagging in 2020 during the beginning of the pandemic, the NAHB reports.

In the fourth quarter of 2021, single-family attached housing starts were 11.4% higher than the final quarter of 2020, according to the NAHB’s analysis of U.S. Census Bureau data.

The market share of new townhouses has risen to 13% of all single-family housing starts.

Source: “Townhouse Construction Surged in 2021,” National Association of Home Builders’ Eye on Housing blog (Feb. 18, 2022)