The Housing Shortage Is Significant. It's Acute For Small, Entry-Level Homes
The American dream of owning a small home with a backyard is being put on hold. In 1982, 40% of houses built were entry level homes. By 2019, the annual share had fallen to 7%.
America's roaring real estate boom is leaving millions of would-be homebuyers out in the cold. The problem is most severe in that corner of the market that once propelled the American dream: the small entry level home.
"I would like to a have a space with a yard, like 900 square feet," says Mat Pergens, 39, who repairs and installs garage doors in and around Reno, Nevada. "Simple cabinets, simple countertops, Shag carpeting. I don't care. I just want four walls and a roof that I can afford."
But his homes short of demand, according to the mortgage giant Freddie Mac.
