The $200000 starter home is going extinct

The pandemic has significantly influenced the housing boom, as indicated by the news content. Factors such as the shift to remote work, low mortgage rates, and changes in housing preferences have contributed to the surge in demand for housing.

1. Remote work: With many people now working from home, the need to live close to workplaces has diminished. This has led to people moving to suburban or rural areas in search of more space and affordable housing.

2. Low mortgage rates: The pandemic has driven mortgage rates to historic lows, making it cheaper for borrowers to finance home purchases. This has encouraged more people to buy homes, driving up demand and prices.

3. Housing preferences: The pandemic has also shifted housing preferences, with many people seeking larger homes with outdoor spaces, such as yards or patios. This has led to increased demand for single-family homes, further fueling the housing boom.

However, the pandemic has also exposed and exacerbated existing inequalities in the housing market. The financial impacts of the pandemic have disproportionately affected lower-income households and people of color, making it more challenging for them to access affordable housing and build wealth through homeownership.

Ali Wolf, Zonda's chief economist, attributed the declining availability of $300,000 starter homes to several factors. These include:

1. The rising costs of building materials, which have made it more expensive to construct new homes.
2. Limited land availability, which has driven up the price of developable land.
3. A lack of housing and regulation, which have contributed to the overall increase in housing costs.
4. The pandemic-fueled housing boom, which has exacerbated the existing affordability issues in the housing market.

These factors have collectively made it more difficult for builders to construct affordable homes, leading to a decrease in the availability of starter homes priced under $300,000.