As many millennials begin the transition from renting to owning, they are finding immense value and livability in townhomes. This huge wave of buyers is impacting a subtle shift in the definition of the American dream, striving less for detached homes as long as their attached residences live and feel great.


The end goal for many consumers is to own a detached single family home. It’s an investment that offers privacy, space and independence. But with rising land and construction prices driving up costs across the country, first time buyers are looking for homes that meet their needs – and budgets – now. As a result, townhome demand has increased every year since 2009, and in 2019, it’s clear this demand will continue to rise.

In the 3rd quarter of 2018, townhome construction was up to 23,000 units annually, 24% higher than the previous four quarters. Builders are finding success with this product type because they can generate higher density and lower sales prices with attached single family homes, two factors that appeal to first time home buyers – especially millennials. Millennials make up 36% of all homebuyers in the current market, so they’re critical to your success. What they want, you should build.

Price increases leveled off some at the end of 2018, but new detached homes are still well out of reach for many buyers in major markets across the country. Attached homes can be built at attainable price points, helping to reduce the burden of all-time high levels of student debt and low cash reserves facing many first-time buyers. Townhomes offer a realistic opportunity to transition into home ownership, but the appeal is not driven by cost alone. Millennial buyers prefer tightly-knit, interactive communities where they can get to know their neighbors. They are more accepting of higher density townhome developments than previous generations.

If you haven’t shifted your single family focus to attached housing, it’s time.

Right now, townhomes comprise 14% of all single family construction, and based on projected demand, this share will continue to rise. Consider shifting your product development mix to include more attached housing options. Or if you’ve never built townhomes, consider starting with a proven prototype building plan to minimize risk and reduce cycle time. Either way, make townhomes a key component of your strategy in 2019 and beyond.

Don’t believe us? Read more about townhome demand and construction from these additional expert sources:

NAHB Now – “Flat Conditions for Some Housing Sectors, But Not All”
U.S. News & World Report – “Thanks to Gen Y Townhome Construction Headed Up”
The Washington Post – “Construction of Townhomes is Up, Offering More Options for First-time Buyers”
Forbes – “Builders Betting Big on Luxury Townhomes as Millennials Eye Homeownership”


Check out BSB Design’s proven prototypes here and see how easy your next townhome project can be.