"One of the core reasons why people, even the home builders, don't build starter homes in America is nobody's willing to give mortgages for starter homes."
"American consumers who have a mortgage amount less than $300,000, they don't get treated well at all."
"New builds cost 74% more and are 11% smaller than they were a decade ago, according to Lendingtree."
"The median first-time homebuyer age hit a record high of 40 last year, and first-time buyers now comprise a record-low share of just one-fifth of all buyers."
The U.S. faces a significant shortage of nearly 4 million homes, particularly starter homes, due to high prices and restrictive zoning. Better.com CEO Vishal Garg identifies the mortgage industry as a key barrier, where loan officers prioritize larger loans for better commissions. This has led to poor treatment of consumers seeking mortgages under $300,000. Consequently, the median age of first-time homebuyers has risen to 40, with first-time buyers making up only one-fifth of the market. New builds are smaller and more expensive, complicating homeownership for young people.
Read at Fortune
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