When home buyers review their options for new construction, fewer consider the option of purchasing a townhouse. The Star Tribune reports new townhouses make up just over 10 percent of new housing sales. Before the recession, that number stood at almost 50 percent. Meanwhile, a large number of unsold townhouses remain on the market.
Townhouses in the suburbs and small towns ringing the Twin Cities have long held special appeal for first-time buyers and empty nesters. But today's younger buyers appear more interested in single-family homes and the older ones are renting or remaining in their existing property.
Few new townhouses are currently under construction because the townhouse segment of the market remains stagnant and overbuilt. Developments in Lakeville, Blaine and Mendota Heights are among those that have shifted to plans to construct single family homes instead of townhouses.