After years of focusing on higher-priced and luxury homes, builders are now turning their focus on starter and entry-level homes. Analysts say that over the next 12 to 24 months, first-time buyers should see an increase in homes they can actually afford.
Still, issues remain and the increase in starter homes may be as low as a 6 percent increase. There is still a shortage on skilled construction workers and the cost of building materials has increased significantly since on the onslaught of COVID-19.
The new homes will be smaller on smaller lots. Many home builders are offering mortgage rate buydowns which allows buyers to purchase mortgages at a lower rate during the first two years.