Overview
- Realtor.com released its report on Monday showing there are roughly 300,000 fewer homes listed under $350,000 today than in June 2019 and the typical starter home now costs about $344,000.
- The income needed to buy a starter home has risen to roughly $78,000 from $43,000 in 2019 while median household income climbed only about 28%, making many buyers unable to qualify for mortgages.
- Inventory under $350,000 has recovered by about 220,000 homes since the 2022 low, but sales of homes in that price tier fell about 10% in April year‑over‑year and remain weak year‑to‑date.
- Recovery is uneven: the South and West show more affordable listings after new construction, while the Midwest and especially the Northeast have tighter markets and rising starter thresholds (about $444,000 in the Northeast).
- The report warns a structural shortage of roughly four million homes and mortgage-rate driven ‘lock‑in’ will slow broad affordability gains, so younger and lower‑income first‑time buyers are likely to remain the most squeezed.