Is there really a starter home price gap?

  • Low-end and move-up houses are always in greater demand than the top-end.
  • Young people may struggle to buy because of job instability, or difficulty saving, but price versus payment is not the problem. Construction shortage is.

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One of the big portal’s chief economists — Trulia’s — released study conclusions this week based on the company’s “inventory monitor”: the shortage of housing for-sale inventory is due to the price gap between low- and mid-level homes and “premium” ones, and the large number of starter homes either bought by investors or underwater vs. mortgages.