Are Entry-Level Homes A Thing Of The Past?

Entry-level, starter homes are becoming harder to find. In 1982, 40 percent of the country’s newly constructed houses were entry-level modest homes, but by 2019, the annual share had fallen to around 7 percent. The high costs of building materials, labor costs, and zoning regulations that discourage construction all contribute to the lack of entry-level housing. With many people looking for housing near jobs and other opportunities, rising land costs pose another barrier for developing such housing. When land is expensive, it’s harder for builders to turn a profit on smaller homes, so they focus on building larger luxury homes that are out of reach for many families.

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