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The Rise of $1 Dollar Starter Homes in 237 Cities
Sellers Q2 profit margins hold steady. iBuyers effect on racial bias. Buyer’s hesitate despite falling rates. Functional and Attractive Home Decor Is Doable.
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🗞️ In This Edition
Rise of $1 Dollar starter homes
Sellers Q2 profit margins hold steady
iBuyers effect on racial bias
Buyer’s hesitate despite falling rates
Plus: Functional and Attractive Home Decor Is Doable?
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🤌🏻 Real Trends
The Rise of $1 Dollar Starter Homes in 237 Cities
Escalating Starter Home Prices: In over 200 U.S. cities, the typical starter home now costs $1 million or more. This significant increase from just 84 cities five years ago reflects a severe housing shortage that has driven prices to new heights across the country.
Nationwide Trends: The average starter home in the U.S. is valued at $196,611, a price that remains affordable for median-income households. However, starter home values have surged by 54.1% over the past five years, outpacing the 49.1% increase seen for the average U.S. home. This rise has contributed to the delay in first-time home purchases, with the median age of first-time buyers now at 35.
Geographic Concentration: California leads the nation with 117 cities where the typical starter home costs $1 million or more. Other states with high counts include New York (31 cities), New Jersey (21), Florida (11), and Massachusetts (11). The New York City metro area, encompassing parts of New Jersey and Pennsylvania, tops the list of metropolitan areas with 48 cities featuring million-dollar starter homes.
Market Dynamics and Future Outlook: The housing market may be approaching a more balanced state. Increased housing inventory, driven by easing rate locks and ongoing construction, is giving buyers more options and negotiating power. Record-high price cuts indicate a potential shift in favor of buyers.
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