Starter-Home Squeeze: Where First-Time Buyers Still Find a Foothold

Starter homes have become scarcer nationwide since 2019, with the share of starter-priced listings dropping from 38.1% to 36.2%, while prices rose about 31%. Condos and townhomes now make up a larger portion of starter homes. The Midwest offers more affordable starter homes and neighborhood choices, unlike many Southeast and Sunbelt markets where starter inventory has declined sharply. Starter-home availability varies widely within metros.