Starter Homes May Be Coming Back, After All
DAILY REAL ESTATE NEWS | THURSDAY, APRIL 28, 2016
Good news for first-time buyers: more starter homes are on the way. A recent analysis by BUILDER online shows the number of homebuilders offering entry-level housing rose 25 percent last year compared to the year prior.
Read more: Young Buyers Face Investor Competition
Since the recession, the number of new entry-level homes plummeted. BUILDER online even declared the starter home “nearly extinct” last year.
However, BUILDER's analysis of the 2016 Builder 100/Next Builder list points out an increasing number of builders are devoting at least 50 percent of their business to building entry-level homes. While the numbers are rising, the entry-level market is still a fraction of what it once was in 2010.
Still, “the re-entry of the entry-level buyer has begun, but this group’s next moves will be gradual,” says Metrostudy’s Brad Hunter about young buyers’ emergence into the housing market. “Income challenges remain, and there are still relatively few new house developments who target this group.”
Source: “Builder 100: Entry Level Makes a Comeback,” BUILDER (April 27, 2016)