As housing prices have continued rising nationally to the most unaffordable point in a decade, the Capital Region has seen its inventory of affordable, “starter homes” decrease as well, according to Jessica Lautz, managing director of survey and research for the National Association of Realtors.
Increased costs for labor, materials and land have made building homes more expensive, resulting in fewer homes for first-time buyers, Lautz said.
“There is a reduced supply for your entry-level buyer or for someone who may want to downsize,” Lautz said.
With a low inventory of relatively affordable homes, Lautz said buyers can get into bidding wars, driving prices up.
Statewide, the median home sale price in October was $260,000, up from $245,260 last October - a 6 percent increase.
Laura Burns, CEO of the Greater Capital Association of Realtors, said while it’s true fewer new homes are listed at traditional entry-level prices, contractors are still building homes - just larger ones, for around $300,000 and $400,000.
“If you were a builder and you have a 1-acre parcel, are you going to build a 1,500-square-foot starter home, or a 2,500 square foot home where you have a much wider profit margin?” Burns said.
That means that while firsttime buyers often can’t afford new
A view of a home on Center View Drive in Troy.