A recent metro-by-metro analysis by Realtor.com® examined the state of the American starter home. For many would-be buyers, these more affordable options have felt increasingly scarce as rising prices and climbing mortgage rates compound the challenge.
In addition, research from economists supports this feeling of a shrinking market. The national share of starter homes in active inventory fell from 38.1% in August 2019 to 36.2% in August 2026. During that same period, starter home prices rose 30.8%, from roughly $260,000 to $340,000…