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Builders begin slow move back to starter homes

Tight supply of affordable homes, and a relatively large increase in their price, are encouraging builders back to the starter home sector. But a slowing economy and tighter credit conditions rule out a substantial shift to cheaper homes. Instead, we expect the gradual rise in new homes sold for under $300,000 to continue, from just under 50% today to around 55% by the end of 2020.

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