For years, one of the crucial elements in the country’s housing market malaise has been the lack of starter homes. Fortunately, that situation is slowly easing with a number of caveats.
First, there are still 300,000 fewer affordable units on the market today than there were pre-pandemic. Also, in 2019 starter homes cost $256,000; today they sit at $344,000.
The South, specifically Florida, Texas, and the Carolinas have seen the greatest increase in starter homes – approximately 170,000. The Northeast and Midwest are actually worse than before the pandemic.
Again, the overall national trend is positive with rising inventory and moderating prices.