With the disappearance of the entry-level buyer, builders aren't building small, entry-level homes, so the average size of new homes keeps rising.
The entry-level buyer utilizing only their savings plus a loan is the foundation of the housing market. If you follow the chain of move ups backward, it eventually leads to the entry-level buyer, and as a result, nobody in the real estate market gains move-up equity until the entry-level buyer does. If owners of entry-level properties do not gain equity over time due to price declines or stagnation, they do not have the equity necessary to move up, and neither will any other seller in the move-up equity chain. If the first-time buyer disappears from the market, which they did since the housing bubble burst, then more sales occur in the higher-priced move-up market, a market dominated by[READ MORE]