Any prospective home buyer who’s searched for an affordable starter home knows they can be difficult to find. There’s a reason for that, according to a new analysis. The analysis, from the National Association of Realtors’ consumer website, found that, while the starter home shortage peaked in 2022, there are still 300,000 fewer homes priced under $350,000 on the market today than there were in 2019. Additionally, the typical entry-level home is now $344,000 – almost $100,000 more than it was pre-pandemic. Hannah Jones, senior economist at the website, says it still depends on where you are. “The starter home story looks completely different depending on where you’re standing,” Jones said. “In the South and West, builders spent the last few years chasing demand at the entry level, and buyers there are actually seeing more choices and better prices than they had two years ago.” On the other hand, less construction in the Northeast and Midwest over the same period has left upward pressure on prices and fewer options for buyers. (source)
