This has already happened in almost every major city in the United States. My anecdotal observation is that townhomes in major cities are affordable to single folks with one (low six figure) income and single family homes require two such incomes. And that actually does make a bit of sense, as a married couple has a higher probability of making good use of a SFH than a single person does.
I don't predict a crash (at least not based on this phenomenon alone) precisely due to the abundance of townhomes that are being built in the US. In Houston, for instance, even though the townhomes are sort of hated since they're replacing old, historic bungalows in many cases, they are the one thing keeping the city somewhat affordable. Cities which have extreme zoning laws preventing this sort of development might be more susceptible to a crash.
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This has already happened in almost every major city in the United States. My anecdotal observation is that townhomes in major cities are affordable to single folks with one (low six figure) income and single family homes require two such incomes. And that actually does make a bit of sense, as a married couple has a higher probability of making good use of a SFH than a single person does.
I don't predict a crash (at least not based on this phenomenon alone) precisely due to the abundance of townhomes that are being built in the US. In Houston, for instance, even though the townhomes are sort of hated since they're replacing old, historic bungalows in many cases, they are the one thing keeping the city somewhat affordable. Cities which have extreme zoning laws preventing this sort of development might be more susceptible to a crash.