Construction Dive: Number of new homes priced under $250K continues to decline

Construction Dive: Number of new homes priced under $250K continues to decline
April 6, 2017 Lei Lani Fera

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.

Read Full Article