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Are Starter Homes On The Rise Again?

November 18, 2019

Supply has been a constant struggle for the housing market for some time now and homebuilders have been tasked with finding ways to create both new and affordable inventory. That's why a new report revealed starter homes could be making a comeback as an option to combat low inventory. 

 

"With volumes low, builders have concentrated on more expensive, higher-margin homes," a Capital Economics report revealed, according to HousingWire.

 

"By the end of 2017, just 40% of new homes sold for under $300,000. That compares to a share of around 65% in early 2007, when overall house prices were only 7% lower."

 

Tight demand has driven prices up but builders moving to starter homes could help boost the housing market as millennials and Get Z break into the housing market.

 

"With both generations battling an unprecedented amount of student loan debt, a comeback in starter homes would create a better chance at homeownership," according to the report.

 

To learn more about how starter homes could help provide a solution to the lack of affordable and available housing, click on the image above

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