Younger buyers, particularly those short on cash, are having trouble finding a new home at a good price. Only 16 percent of newly built homes are priced under $200,000, down from 44 percent of the market in 2010.
Through data from John Burns Real Estate Consulting, CNBC reports that affordability was cited as the main reason why non-home-owning adults do not currently own a home.
Meanwhile, the share of homes priced between $200,000 and $400,000 has risen to 55 percent, up from 43 percent in 2010, and the share of homes priced higher than $400,000 is up to 29 percent of the market, from 13 percent six years ago.
Though a few major builders have introduced low-priced products, for the most part the industry is still focused on the move-up market.
"Rising material prices, particularly lumber, along with chronic shortages of buildable lots and skilled labor are putting upward pressure on home prices and impeding a more robust housing recovery," said Granger MacDonald, chairman of the National Association of Home Builders and a developer from Kerrville, Texas.
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