Entry-level homes now start at $350-$400k, not $200k. The median new home costs $475k because builders can't profit on cheap construction. Investors should focus on rental properties instead, where they can capture transactions in this higher-price market.
Show me the builder. Building $200,000 houses. It simply doesn't exist. So now, like an entry level home, there's 350, $400,000. That's the new entry level home. The average new home price or median new home price is $475,000. In this country, no builder can make a profit building cheap houses. So if you're playing in that market and you're thinking, oh my gosh, you know, the economy is a house of cards, which you're not wrong about that. You catch people as renters or buyers when you decide to sell the property, either moving up and forming a new household or, or moving down because they've had troubled times, and you're going to catch them in your low priced, entry level, bread and butter rental property. So that's the market in which you should play.
