Townhouse construction is outperforming other building sectors, a new analysis from the National Association of Home Builders shows. In the third quarter of this year, townhouses accounted for 33,000 residential construction starts compared to 27,000 in the second quarter of 2017. Construction of townhomes is 24 percent higher than the prior four quarters.

Builders expect demand to grow. “Townhouse construction is set for further expansion given the demographics of renters entering the for-sale market, as well as ongoing land constraints and the growth of demand for walk-able neighborhoods,” the NAHB notes in its Eye on Housing blog. The market share of new townhouses is now at 13.8 percent of all single-family starts—a post recession high.

Townhouses were popular a decade ago. The peak market share for townhouse construction over the last two decades was last set in the first quarter of 2008. Townhouse starts then reached 14.6 percent of total single-family construction.

The rise of housing affordability concerns is sparking a slowdown in new-home construction. Single-family housing starts fell 1.8 percent in October compared to the previous month, the U.S. Commerce Department reported Tuesday.

“This month’s decrease in single-family starts isn’t a surprise given the drop in our builder confidence index,” says Randy Noel, chairman of the National Association of Home Builders. “Builders are showing caution as mounting housing affordability concerns are forcing some consumers to delay making a home purchase.”

Rising mortgage rates and home prices continue to outstrip disposable income, UBS analysts wrote in a recent note. “Housing affordability has dropped notably since peaking in 2012,” UBS analysts say. However, on a historic basis, housing does remain relatively affordable nevertheless. A strong economy has UBS analysts unsure why such a slowdown is occurring in housing, but they predict the real estate market will stay weaker through at least the first part of next year.

“If you’re looking for a new, single-family home, the news this morning wasn’t good,” Robert Frick, corporate economist with the Navy Federal Credit Union, told HousingWire about the latest new-home numbers. “Builders are seeing a turn in the market for new homes and are less likely to build.”

Single-family housing starts began the year strong but weakened over the summer and are remaining soft, says Robert Dietz, the NAHB’s chief economist. “Despite this softness, 2018 construction volume is set to be the best since the downturn,” Dietz says. “A growing economy and positive demographic tailwinds are supporting housing demand as interest rates rise. However, policymakers should take note of the November decline in builder confidence as a sign that housing affordability conditions will weigh on the housing market going forward.”

Overall, construction in the new-home market did eke out a 1.5 percent increase in October, due to an uptick in multifamily housing starts, which include apartment buildings and condos. Multifamily starts rose 10.3 percent month over month in October. As such, housing starts were 5.6 percent higher than a year ago.

But builders remained concerned. Permits, a gauge of future housing production, registered a 0.6 percent drop in October to 1.26 million. Single-family permits dropped 0.6 percent, while multifamily permits decreased 0.5 percent.

Regionally, combined single-family and multifamily housing starts were strongest in October in the West, rising 13.5 percent month over month, and by 5.5 percent in the South, the Commerce Department reports. However, housing starts dropped 0.6 percent in the Midwest and by 4.8 percent in the Northeast last month.

Inflated home appraisals are partly responsible for what the Federal Housing Administration expects to be a $14.4 billion loss in mortgage insurance over the next few years—a cost that likely will be passed on to borrowers, according to an agency analysis. If the losses continue, the FHA may be forced to raise insurance premiums on its mortgages, The Wall Street Journal reports. The FHA insures about 11 percent of single-family residential mortgage debt.

The issue of inflated appraisals first surfaced in the reverse mortgage market. Homeowners use reverse mortgages to borrow against the value of their homes, and their lenders are repaid when the properties sell. But an inflated appraisal could result in the lender not recouping the entire value of the loan. In that case, the FHA is responsible for coming up with the difference.

Brian Montgomery, head of the FHA, says a review of 134,000 mortgages insured by the agency found that at least 37 percent of the properties were overvalued by 3 percent or more. Reverse mortgages make up about 6 percent of the FHA’s insurance portfolio.

The FHA says it has initiated a new process in which all appraisals submitted under its reverse mortgage program must be reviewed before lenders can close on a loan. Under this new process, the FHA will order a second appraisal if it believes a home has been overvalued.

Inflated appraisals were blamed for the housing bubble a decade ago. They decreased in frequency in subsequent years, but now they’re resurfacing as home prices skyrocket, housing officials say. “Appraisers seeking future business have little incentive in jeopardizing a loan closing by underestimating the collateral value,” according to a 2017 study by housing officials. That study prompted the FHA to do further investigation into the issue.

Real estate auctions have largely been considered an option for unloading foreclosures and distressed homes, but it’s becoming a growing option in the luxury market. The number of multimillion-dollar homes that have sold at auctions in the past year has nearly doubled, CNBC reports.

What is the most expensive home on record to have hit the auction block? CNBC reports that Playa Vista Isle, an estate that stretches more than 58,000 square feet in Hillsboro Beach, Fla., was listed in 2014 for $139 million. It was the priciest home listed in the country at the time. The price tag later jumped to $159 million before it was eventually pulled from the market in 2016. The oceanfront home features 11 bedrooms, 22 bathrooms, a private IMAX theater, a 3,000-bottle wine cellar, and a 20-car garage. The property owners will try once again to sell the estate but this time will use an auction. The auction for the home started Monday at ConciergeAuctions.com and concludes Thursday night.

Concierge Auctions, which caters to luxury real estate auctions, says it plans to sell at least 20 homes this year that will be listed for more than $10 million. That is double last year’s total, they say.

“The trend for high-end real estate going to auction is definitely on the rise,” Laura Brady, CEO of Concierge, told CNBC. “We’re seeing more sellers across the country than ever before, especially in the $10 million, $20 million–plus, and even $100 million–plus category.”

With the buyer pool being so small for these ultra-luxury properties, some owners are turning to auctions to try and get the homes sold faster.

However, auctions for high-end real estate aren’t always successful. For example, basketball all-star Michael Jordan put his Chicago estate up for auction in 2012, but failed to get his minimum price. The home is still on the market.