Elevated home values triggered by tight inventory conditions across all housing categories is one contributor to the relative growth in bigger-ticket sales. Meanwhile, factors such as student debt, slow wage growth and high rents are making it difficult for younger buyers, who typically purchase lower-priced homes, to save up for a down payment. Entry-level inventory continues to contract. Supply fell 8.7% during the first quarter of 2017 from a year earlier while the median list price was up 8.3% for the period, according to Trulia. With existing homeowners slow to trade up to larger homes and leave their properties for purchase by younger, first-time buyers, some homebuilders are stepping in to create the necessary inventory to fill the gap. Among them, Meritage Homes, D.R. Horton and Toll Brothers, along with a few regional builders, now offer entry-level home plans with smaller footprints and fewer amenities to help reduce the cost of building at such a low price-point.
Categories:Construction Dive