Starter homes are getting harder to find. These 20 cities are bucking the trend.
Starter homes are becoming increasingly scarce across the United States as prices rise and inventory drops. While the national trend shows a decline in affordable housing, a few specific metropolitan areas are seeing a slight increase in starter home availability.
Why it matters
The shrinking inventory of affordable entry-level homes is a significant barrier for first-time homebuyers, impacting long-term wealth accumulation and housing market stability.
Starter homes are becoming harder to come by in all but a few major metros. dpproductions/Getty Images The market for starter homes is decreasing, but some cities still have plenty available. A report from Realtor.com shows that fewer than a quarter of large metro areas are starter-home-dominant. The number of starter homes is falling nationally, but it's increasing in some cities. As mortgage rates continue to reach new heights , options for first-time buyers are dwindling. Even starter homes — affordable properties that entice first-time homebuyers get their foot in the door — are jumping in price. The inventory of starter homes has recently decreased across the country. Data from Realtor.com shows that the national starter home share dropped from 38.1% to 36.2% from August 2019 to 2026, but the price during that timeframe increased 30.8%, from about $260,000 to $340,000.
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