For generations, the starter home was the first real step into the American dream. Now, with prices climbing, inventory shrinking and builders incentivized to go bigger, we look at how that first rung of homeownership has moved out of reach for many first-time buyers.
Guest:
- Dennis Shea, executive vice president, Bipartisan Policy Center; Jessica Lautz, deputy chief economist, National Association of Realtors.
With home prices climbing and inventory shrinking, today’s starter homes don’t look like they used to. But before we dive into how this market’s changed, let’s start with a simple question: what exactly is a starter home?
The income needed to afford one of these homes has more than doubled nationwide. For some adults, this shift has turned what was once a common young-adult milestone into a goal that’s far out of reach.
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