04/01/2019 (Mon) 17:12:26
The problem is that many of the starter homes that boomers owned in the 90s got "renovated" by owners LARPing as weekend contractors and removed them from the pool of small houses that young people can typically afford. Wages have been stagnant for quiet some time, so those 150K homes that boomers bought are now selling for 250-300K (or more).
Home Depot and Lowes got big in the 90s because of that trend, and so did 2nd mortgages.
Most new construction is geared towards building houses that sell at current prices and I've read that building starter homes is not currently profitable (after you take into consideration all the permits and zoning variances that are needed).
In most places, development will be relegated to big apartment complexes and Mcmansions.