Home prices are now approximately 6 percent higher than peak prices in 2006, and have recovered about 46 percent from the lowest points of the housing crash in early 2012.
A new Zillow survey tracks home price appreciation on the top third (high-end) and bottom third (low-end) of the market. CNBC concludes that the supply on the low end is severely restricted, while supply on the high end is much higher. Most home builders look to build for the middle of the market, and there is growth in that segment as well. Many millennials are turning to single-family rentals rather than purchasing their first home.
During the recession, builders dropped production by more than half their normal pace, and they have still not recovered fully. Lower-priced homes went into foreclosure at a rapid clip, and millions of them were bought by investors who turned some of them into rentals.
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