Townhomes are gaining popularity again as land and building costs skyrocket.

Townhouse-living is becoming a thing again amongst first-homebuyers in Australia, Canada, and the United States as land and building costs soar.

In a Forbes report, an analysis by the National Association of Home Builders (NAHB) in the US found that there is a growing trend of townhouse construction in recent periods. In fact, over the past year ending with the first quarter of 2018, townhouses in the US reached 105,000.

"The share for townhouse construction is expected to increase in coming years, with occasional ups and downs. The long-run prospects for townhouse construction are positive given large numbers of home buyers looking for medium-density residential neighbourhoods, such as urban villages that offer walkable environments and other amenities," NAHB said.

The trend is most popular in areas such as Denver, Seattle, Nashville, and San Antonio. The association said this phenomenon is also apparent in overseas housing markets like Canada and Australia.

Bill Gill, a broker from the Chicago-based Baird & Warner, told Forbes that millennials and baby boomers are driving the demand for townhomes.

"First-time home buyers are looking for something on the affordable end. And baby boomers are drawn to the maintenance-free lifestyle many townhome communities offer. A lot of new construction includes townhomes because it's more practical to build townhomes on infill property in areas where land is scarce," Gill said.

For Red Seal Homes' Brian Hoffman, townhomes complement single-family homes and duplexes from a developer's perspective.

He told Forbes: "The flexibility of our townhome plans also makes them a great option for buyers who know their space needs will change over time.