Currently Reading

Affordable Starter Homes Are Becoming Harder to Find

Advertisement
Housing Markets

Affordable Starter Homes Are Becoming Harder to Find

The majority of housing markets lack starter homes under $150,000, and some pricey metros have none available at all


May 17, 2022
Small A-frame home with gray siding and white trim
Image: Stock.adobe.com

Just two years ago, 4.8% of homes in the United States were worth $1 million or more, but thanks to record low inventory and fast-rising prices throughout the COVID-19 pandemic, that share is now up to 8.2%, says The New York Times. Housing affordability is becoming increasingly hard to find across the U.S., and the number of housing markets with starter homes listed below $150,000 is quickly dropping.

A recent Point2 study revealed that Mesa, Arizona and St. Petersburg, Florida were the only two U.S. cities with a share of starter homes above 10%, while the most populous and expensive cities had zero affordable homes available. 

The results were often hyperlocal, with neighboring cities having wildly different markets. For example, in the Phoenix satellite city of Mesa, the share of affordable homes was nearly 15 percent; in neighboring Gilbert, the share was zero. Honolulu ranked fifth among the top 10 cities with the highest portion of affordable homes, with just under 5 percent, even though it had a relatively high median home price of $870,000.

Read more

Related Stories

Housing Markets

Miami Tops the List of the Nation’s Most Competitive Rental Markets

Remote workers from around the country are flocking to sunny metros like Miami, where rental demand is at an all-time high

New-Home Sales

The 10 Hottest Housing Markets Seeing the Fastest Home Sales

Jackson, Mississippi tops the list of the 10 cities where homes are flying off the market the fastest, followed closely by other southern metros and a few northeastern hotspots

Housing Markets

The Nation’s Hottest Housing Markets Are Finally Cooling

Local housing inventories are climbing in some of the nation's most in-demand metros and suburbs, signaling greater affordability and more opportunities for home purchases in the near future

Advertisement
Advertisement

More in Category




Advertisement
Advertisement

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.


Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Subscribe
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.