Homebuilders favor high-end buyers
Homebuilders are starting to cater more to higher-end buyers who have rebounded more quickly from the recession than entry-level buyers, The Wall Street Journal reported this week.
The new-home market has split into the haves and have-nots since the recession, and some economists predict it may favor more-affluent buyers for at least another year, if not longer.
That has builders that typically cater to entry-level buyers now skewing their offerings toward the more active market: move-up buyers shopping for homes at roughly $300,000 or more. The shift has created more choices for upscale buyers and slightly fewer for the entry-level set.
"It will be gradual, but it will be at least several years before we see the participation of the first-time buyer come back to normal levels," said David Crowe, chief economist for the National Association of Home Builders trade group. "In the meantime, the [new-home] market will lean toward the upper end."