There are fewer single-family homes available to first-time and entry-level buyers now than there were in 2019. Smaller, starter homes are harder to find and more expensive than they used to be. In fact, the national starter-home price threshold, according to a new report from the National Association of Realtors’ consumer website, rose from $260,000 to $340,000 over the same period that the inventory of homes in that range fell. In other words, starter homes are more expensive and rare than they were pre-pandemic. Hannah Jones, senior economist with the website, says entry-level buyers are finding other options. “Condos and townhomes are quietly becoming an increasingly important entry point to homeownership,” Jones said. “That does not erase the broader affordability challenge, but it does show that the starter-home market is adapting as single-family homes become less accessible to first-time buyers.” (source)
