A lack of available houses is making it difficult for people buy entry-level homes.
Reuters reported that in certain hot markets, competition from other bidders is so fierce that first-timers are forced to spend tens of thousands of dollars more for homes than they were expecting. Some are even straining their budgets for homes that could be considered trade-ups.
According to the National Association of Realtors, the inventory of homes costing $250,000 or less fell more than 12 percent during the last year due to higher labor, land and building permit costs. Also, big-time investors are snatching up affordable homes and turning them into rentals.