Starter Home Inventory Declines: Insights into U.S. Housing Market Trends

Starter homes are becoming harder to find across the United States compared to what was available before the pandemic, although some metropolitan areas have managed to increase their supply for first-time buyers.

A recent analysis from Realtor.com revealed that the national proportion of starter homes dropped from 38.1% of the active inventory in August 2019 to 36.2% in August 2026. During the same period, prices for these homes rose significantly—by about 30.8%, moving from around $260,000 to $340,000.

According to Hannah Jones, a senior economist at Realtor.com, this decline in inventory represents over 21,000 homes that would have been considered starter-priced if the 2019 ratio had remained constant. The report defines starter homes as those priced at roughly 80% of the median list price in a given metro area, typically smaller and more accessible for first-time or lower-income buyers.

Interestingly, condos have increasingly filled the gap in the starter home market compared to single-family homes since the pandemic began.

Shifts in Baby Boomer Ownership

In August 2019, condos made up 18% of the starter-priced inventory nationwide, with single-family homes occupying the rest. By 2022, that percentage climbed to 20%, ultimately hitting 27.1% by August 2026, indicating a clear trend towards more multifamily units in the starter home sector.

The changes in the housing market differ significantly across the country’s top 100 metropolitan areas from 2019 to 2026.

Inventory Waves Amid Rising Prices

Despite a general decline in starter homes nationally, some metro areas have actually seen an increase in this segment. Boise, Idaho, for instance, recorded the largest rise in starter home share with a 4.7% increase since August 2019. Following closely is Portland, Oregon, and Vancouver, Washington, with a 4% increase.

Other notable gains include Des Moines, Iowa, at 3.7%, San Jose, California, at 2.9%, and Denver, Colorado, with a 2.5% increase in starter home availability.

Trends in Home Buying

Surprisingly, buying a new home has become cheaper than purchasing an existing one in various markets. However, it’s worth mentioning that many areas in the Sun Belt region have not seen their starter home inventory bounce back to pre-pandemic levels. In fact, some of these areas have experienced the biggest declines through 2026.

For example, the metro region of Columbia, South Carolina, saw an 8.3% reduction in starter home share, the most significant drop in the country. Winston-Salem, North Carolina, followed with a 7.5% decline, while Cape Coral and Fort Myers, Florida, dropped by 6.9%. Additionally, Augusta and Richmond County in Georgia and South Carolina also saw a drop of 6.5%.

The only metropolitan area outside the South to make the list of largest declines was Fresno, California, which experienced a 6% drop—similar to the reductions observed in Greensboro and High Point, North Carolina.