Lopsided Market

Business Insider  is calling it the next housing crisis. Across the nation housing markets are suffering from a lack of starter homes while luxury homes are big snapped up at record rates and prices.

“With fewer affordable homes available to younger first-time buyers, sales are slowing. The NAR said on Wednesday that pending home sales, which track contracts that have been signed but not closed, fell in May for a third straight month.”

Not so in Houston. "The price point in Houston is much better than some places in the country and so it's important that people understand what they can buy here compared to what they can buy in other parts of the country," said HAR Realtor, Chaille Ralph.

While no metro area has more than 50 percent of its homeowners identifying as millennial, Houston ranked 29th out of 45 major cities for its millennial homeownership rate. Some might say that young people’s preference of the most popular and progressive cities along with spending habits is compromising their home buying ability. Millennial preference of lifestyle enrichment can make the time it takes to save for a down payment, which can take a decade in some markets, seem almost impossible.

Enter Addison, TX–based builder Gehan Homes who announced last week that it has launched a new brand called Gray Point Homes, that will deliver entry-level product targeting millennial buyers. Gray Point Homes’ portfolio will initially have 14 floor plans and 42 elevations. Its first communities will be Balmoral, a 580-acre community in Houston, followed by Mostyn Springs, in Magnolia, TX. This is a smart move in a market where Millennials are starting to buy and starter homes are being called the next hot housing market.

Are you a first-time home buyer looking for tips? Try this article by USA Today - Money.