The number of US cities where first-time homebuyers are faced with at least a $1 million price tag on the average entry-level home has nearly tripled in the past five years, according to new research.
A Thursday report from Zillow indicates that a typical starter home is now worth $1 million or more in 237 cities, up from 84 cities in 2019, underscoring America’s ongoing home affordability crisis.
“Affordability has been strained across the board,” Orphe Divounguy, a senior economist at Zillow, said. “We see the largest number of million-dollar starter homes in expensive coastal markets. We see them in markets with very low homeownership rates and we see them in markets with more building regulations.”
This is wildly incorrect in many cities, likely the ones the article of talking about.
Size has so little relevance to cost these days that there is no logical way to downsize. The mortgage doubles whether they sell and buy a house of the same size or one half as big.
What are you talking about? Here’s 4 bed houses in La Jolla, San Diego.
And here’s 2 bed houses in the same community.
Size very much has relevance. Where people are locked in is they got a starter home in the past decade, (or 2) and the price to move into a larger house is so much that not only are they wiped out on any windfall, they’re also back on another full 30 year mortgage at a higher rate, and higher total payoff amount.
Downsizing is easy.