Efforts To Increase Availability
In locations with a lack of affordable housing, such as New York City, San Francisco, London, or Shanghai, it may be impossible for first-time home buyers to find starter houses close to the city center. To assist such home buyers, local authorities such as that in Santa Cruz, California, have re-zoned previously commercial areas for residential housing specifically to allow developers to build starter homes. The Wall Street Journal tracks median home purchase prices of starter homes as part of its real estate index. Cities, whether suburban or the central core, have generally moved to a trend of master planned communities where large tracts of land are set aside for one complete build-out in order to maintain low costs to the developer and provide essential affordable and entry-level housing. Commercial and retail components are almost always included in these starter home communities.
Read more about this topic: Starter Home
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