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.

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.