For many families, their first home purchase is their first step into building wealth and stabilizing their economic futures. But a new report finds that the classic starter homes – newly built and moderately priced – are become scarce in metro Detroit, threatening that path into the real estate market.
JC Reindl is a business reporter for the Detroit Free Press. He writes:
Builders in and around southeast Michigan say it is now hard to make a profit on entry-level homes because of higher construction materials costs, a shortage in construction labor, local zoning and regulation issues and the cost of land in desirable areas.
It is also taking builders longer to finish construction on homes, largely because of overstretched subcontractors. These dynamics have compelled many builders to focus on houses with bigger profit margins, often those priced $400,000 and above.
To hear Reindl on Detroit Today, click on the audio player above.