An entry-level homebuilding boom in the Southeast smacks into a shifted housing market

"Speaking with a home builder last night (Chattanooga, TN): High-demand in the low-end of the market (<$300k), as people are looking to upgrade from renting. Can't build enough. Almost no demand in middle market ($300k-700k), as it tends to be the upgrade market and the buyers...- Craig Fuller 🛩🚛🚂⚓️ (@FreightAlley) October 4, 2025 While Fuller's narrative rings true in some pockets of the country, it isn't the case everywhere."

"According to my reporting and research, there's currently a lot of variation by price tier. Several Southeast homebuilders have told me they've actually seen greater softening in the entry-level segment over the past year-the very segment many builders have been chasing. Some rolled out smaller floor plans or trimmed square footage to entice priced-out homebuyers, but those efforts are now meeting slower demand. Meanwhile, the higher tiers have held up better."

"Part of that cooling stems from simple oversupply and stretched affordability. Builders across the Southeast ramped up production of smaller, sub-$350,000 homes in 2023 and early 2024. But elevated insurance premiums, rising property taxes, and household budget fatigue have since taken a toll, especially in Florida and parts of Georgia. This month, I launched the ResiClub Terminal-a new platform that includes analysis by home-price tier:"

Housing demand in the Southeast varies significantly by price tier, with some areas showing less demand at the entry-level and greater resilience in higher tiers. Several builders report greater softening in the entry-level segment after ramping up production of smaller, sub-$350,000 homes in 2023 and early 2024. Oversupply and stretched affordability are contributing factors. Elevated insurance premiums, rising property taxes, and household budget fatigue have reduced demand, especially in Florida and parts of Georgia. A new ResiClub Terminal provides tiered analysis of lower-, middle-, and upper-tier homes to track these patterns by market.

Read at Fast Company