Why Americans Can’t Find Starter Homes

Starter homes are typically modest in price and under 1,400 square feet. These units accounted for 40% of new residential construction in 1982, and just 9% in 2023. Economists say starter homes are disappearing as home builders contend with rising costs for land, labor and materials while navigating increasingly thick layers of regulation. As a result, many new homes are for high-end buyers in more remote locations. Meanwhile, the age of the first-time buyer rose to 38 from age 29 in 1981. Chapters: 00:00 Introduction 01:00 Chapter 1 - Inventory 03:20 Chapter 2 - Housing markets 06:03 Chapter 3 - Finances 09:18 Chapter 4 - Regulation Produced and Edited by: Carlos Waters Senior Producer: Shawn Baldwin Graphics: Christina Locopo, Jason Reginato Additional footage: Getty Images, Congress Additional sources: Bankrate, Congress for the New Urbanism, Congressional Research Service, Construction Coverage, MMG, Redfin, Reuters, Texas Office of Public Insurance Council, Urban Institute, U.S. Department of Housing and Urban Development