High demand coupled with low inventory has caused trouble for builders who can’t find lots to develop. According to Movoto, townhome inventories fell by 47 percent between January 2011 and 2014. Now, construction is picking back up with a 6 percent increase in town home production last year.
More building means more competition for workers and raw materials – meaning costs may rise, especially with Wake County ready to kick off a building boom for new schools, EMS stations, and libraries. John Katschkowsky, director of reconstruction services for Balfour Beatty Construction in Raleigh, said he has already received notices from his subcontractors that prices for steel and other commodities are going up, but he doesn’t expect more than a 5 percent increase in costs this year.
Townhome sales are particularly attractive to buyers in southeast Durham, Cary, and Morrisville where land prices are higher. Young professionals hoping to live near Research Triangle Park find these options more affordable and convenient.
There were 955 townhouses sold last year in Cary, Apex, and Morrisville compared to 287 in 2012, according to Triangle Multiple Listing Services. In Durham County, sales also saw improvement last year with a 35 percent increase.