{"id":14685,"date":"2026-03-22T12:03:20","date_gmt":"2026-03-22T12:03:20","guid":{"rendered":"https:\/\/christiancorner.us\/index.php\/2026\/03\/22\/flippers-to-supply-2x-more-starter-homes-than-builders-in-2025\/"},"modified":"2026-03-22T12:03:25","modified_gmt":"2026-03-22T12:03:25","slug":"flippers-to-supply-2x-more-starter-homes-than-builders-in-2025","status":"publish","type":"post","link":"https:\/\/christiancorner.us\/index.php\/2026\/03\/22\/flippers-to-supply-2x-more-starter-homes-than-builders-in-2025\/","title":{"rendered":"Flippers to supply 2x more starter homes than builders in 2025"},"content":{"rendered":"<p>\n<\/p>\n<div xmlns:default=\"http:\/\/www.w3.org\/2000\/svg\" id=\"post-content\" :class=\"{ 'hidden': $store.proContent.showFullPrompt() }\">\n                            <!-- Table of contents: mobile --><\/p>\n<section class=\"px-4 relative border border-slate-200 mobile-toc lg:hidden\" x-data=\"{open:false}\">\n                    <button x-on:click=\"open = !open\" class=\"flex items-center gap-4 my-2 border-none w-full\"><br \/>\n                        <default:svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"h-6 w-6\" fill=\"none\" viewbox=\"0 0 24 24\" stroke=\"currentColor\" stroke-width=\"2\"><default:path stroke-linecap=\"round\" stroke-linejoin=\"round\" d=\"M4 8h16M4 16h16\"\/><\/default:svg><\/p>\n<p class=\"font-semibold text-slate-800 text-base m-0 js-toc-ignore\">in this article<\/p>\n<p>                    <\/button><\/p>\n<\/section>\n<p><span data-preserver-spaces=\"true\">Talk of low interest rates has raised hopes that house flipping could make a comeback. Guess what? It never left. <\/span><\/p>\n<p><span data-preserver-spaces=\"true\">according to a<\/span><a rel=\"noopener\" target=\"_blank\" class=\"editor-rtfLink\" href=\"https:\/\/www.prnewswire.com\/news-releases\/local-investors-outpace-builders-by-217-in-delivering-starter-homes-to-market-as-affordable-housing-shortage-deepens-302708809.html\"><span data-preserver-spaces=\"true\">    New report from New Western<\/span><\/a><span data-preserver-spaces=\"true\">Off-market properties market for local investors <\/span><span data-preserver-spaces=\"true\">flippers<\/span><span data-preserver-spaces=\"true\">    217% more starter homes are supplied to the market in 2025 than homebuilders supply, reshaping the story of affordable housing for first-time buyers.<\/span><\/p>\n<h2><span data-preserver-spaces=\"true\">Why is it no longer appropriate for builders to build tiny houses?<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">Like dinosaurs, starter homes once roamed all corners of America, until a cataclysmic event\u2014the COVID-19 pandemic and rising interest rates\u2014made them an endangered species. especially,<\/span> <span data-preserver-spaces=\"true\">New construction of starter homes decreased. <\/span><\/p>\n<p><em><a rel=\"noopener\" target=\"_blank\" class=\"editor-rtfLink\" href=\"https:\/\/www.nytimes.com\/2026\/02\/25\/headway\/housing-starts-newsletter.html\"><span data-preserver-spaces=\"true\">the new York Times<\/span><\/a><\/em><span data-preserver-spaces=\"true\">Citing data from the Federal Reserve Bank of St. Louis, it recently reported that builders broke ground on 1.36 million homes in 2025, down slightly from 2024. Given the 4-million-home supply gap <\/span><a rel=\"noopener\" target=\"_blank\" class=\"editor-rtfLink\" href=\"https:\/\/www.realtor.com\/research\/us-housing-supply-gap-2026\/\"><span data-preserver-spaces=\"true\">realtor.com<\/span><\/a><span data-preserver-spaces=\"true\">There is still a significant void to fill.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">&#8220;It&#8217;s not nearly as economically viable to build what we consider a starter home: a 1,000-square-foot home,&#8221; said DC mortgage lender Christian Kosko, who often works with young buyers.<\/span> <em><a rel=\"noopener\" target=\"_blank\" class=\"editor-rtfLink\" href=\"https:\/\/www.washingtonpost.com\/business\/2026\/01\/05\/starter-home-disappearance\/\"><span data-preserver-spaces=\"true\">Washington Post<\/span><\/a><\/em><span data-preserver-spaces=\"true\">. &#8220;They are now incentivized to build million, million-and-a-half million, $2 million homes. That&#8217;s where the profit is for those builders. The rise in interest rates has made the numbers no longer work for building smaller homes, even if they are mass-produced.&#8221;<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Zillow senior economist Orphe Divongue said <\/span><em><span data-preserver-spaces=\"true\">Post:<\/span><\/em><\/p>\n<p><em><span data-preserver-spaces=\"true\">&#8220;In 2022, when mortgage rates more than doubled, builders started building smaller. They tried to make the math work for potential home buyers. But prices have gone up so much, it&#8217;s still very difficult to buy a home, especially in markets that don&#8217;t allow building on small lots. &#8230; When a builder goes out there and tries <\/span><span data-preserver-spaces=\"true\">Creating something that actually sells in today&#8217;s market<\/span><span data-preserver-spaces=\"true\">They just can&#8217;t.<\/span><\/em><\/p>\n<div class=\"justify-center \" x-data=\"{ IabAdad_block_: popAd(('r720x90'), '1') }\" :class=\"IabAdad_block_.linkURL ? 'flex pt-8' : 'hidden'\">\n<div class=\" hidden sm:block\"><\/div>\n<div class=\"block sm:hidden\">\n          <img class=\"m-0\" :src=\"https:\/\/www.biggerpockets.com\/blog\/IabAdad_block_.r320x50\" :alt=\"IabAdad_block_.r320x50Alt\" loading=\"lazy\" fetchpriority=\"low\"\/>\n        <\/div>\n<\/p><\/div>\n<h2><span data-preserver-spaces=\"true\">A flood of flippers have arrived to fill the void<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">The possibility of an early home comeback was always there. According to , entry-level homes have been the steepest segment of the building drop-off, falling from 40% in the 1980s to just 7% today. <\/span><a rel=\"noopener\" target=\"_blank\" class=\"editor-rtfLink\" href=\"https:\/\/homebuyinginstitute.com\/mortgage\/starter-homes-are-harder-to-find\/\"><span data-preserver-spaces=\"true\">home buying institute<\/span><\/a><span data-preserver-spaces=\"true\">. <\/span><\/p>\n<p><span data-preserver-spaces=\"true\">There remained a supply of older homes ready for renovation, waiting for cash-strapped investors and contractors to turn things around. New Western&#8217;s Flip Side report, based on dozens of major U.S. markets, found that local independent investors delivered 120,193 entry-level homes to the market in 2025, compared to 37,923 starter homes delivered by builders, marking a previously mentioned 216.9% increase for flippers.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">In a recent press statement about the report, New Western co-founder and president Curt Carlton said: &#8220;What if the real housing crisis is not that we haven&#8217;t built enough homes, but that we&#8217;re letting millions of starter homes disappear? Solving today&#8217;s housing challenge isn&#8217;t just about building more homes. It&#8217;s about whether attainable housing actually exists at the entry point.&#8221;<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Carlton said that in 2025, &#8220;small, local independent investors quietly become the largest suppliers of starter homes in America,&#8221; not by building subdivisions but by &#8220;reviving existing homes that would otherwise remain underutilized and returning them to productive use.&#8221;<\/span><\/p>\n<h2><span data-preserver-spaces=\"true\">Amid rising construction and labor costs, the allure of fully furnished homes has increased<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">In the 2026 prediction article,<\/span> <em><a rel=\"noopener\" target=\"_blank\" class=\"editor-rtfLink\" href=\"https:\/\/www.forbes.com\/sites\/amandalauren\/2025\/12\/22\/real-estate-experts-predict-the-biggest-housing-market-trends-coming-in-2026\/\"><span data-preserver-spaces=\"true\">forbes<\/span><\/a> <\/em><span data-preserver-spaces=\"true\">Underscored the appeal of renovated and furnished homes for prospective homeowners over fixer-uppers. Shawn Pappas, partner at Starr Associates, said in the article:<\/span><\/p>\n<p><em><span data-preserver-spaces=\"true\">\u201cWe also expect the bidding war to continue for properties that are ready to be transferred. <\/span><span data-preserver-spaces=\"true\">The continued increase in construction costs, including labor and materials, has made it more difficult <\/span><span data-preserver-spaces=\"true\">home buyers<\/span><span data-preserver-spaces=\"true\">    To <\/span><span data-preserver-spaces=\"true\">Purchase<\/span><span data-preserver-spaces=\"true\">    And renovate.<\/span><span data-preserver-spaces=\"true\">    Therefore, we see a potential reduction in housing prices for homes that require renovation work, and an increase in housing prices for homes that are ready to move in.<\/span><\/em><\/p>\n<h2><span data-preserver-spaces=\"true\">Starter Homes: Close Relationships with Cash Flow Investors<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">Whether you&#8217;re a flipper or a small homeowner, a starter home is likely at the center of your investing equation. For flippers, the relationship is clear: demand. Given the affordability crisis, tiny houses are not only an entry point for many but also a long-term option, which has doubled<\/span><a rel=\"noopener\" target=\"_blank\" class=\"editor-rtfLink\" href=\"https:\/\/finance.yahoo.com\/news\/buying-starter-home-40-heres-100100093.html?guccounter=1\"><span data-preserver-spaces=\"true\">    empty-nest residence<\/span><\/a><span data-preserver-spaces=\"true\">    For old home owners.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">New Western&#8217;s analysis shows that renovated homes are typically priced well below new construction and are often below the average price of homes on the market, making them an attractive proposition for small investors looking for long-term investments and <\/span><span data-preserver-spaces=\"true\">cash flow<\/span><span data-preserver-spaces=\"true\">. A previous report by<\/span><a rel=\"noopener\" target=\"_blank\" class=\"editor-rtfLink\" href=\"https:\/\/www.newwestern.com\/real-estate-investing-trends-2025\/\"><span data-preserver-spaces=\"true\">    new western<\/span><\/a><span data-preserver-spaces=\"true\">    found that revitalized homes are 35% to 80% more affordable than new construction in most markets, and 17% more affordable than the market average existing home sale.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The huge pool of old housing means there&#8217;s also huge potential <\/span><span data-preserver-spaces=\"true\">BRRRR<\/span><span data-preserver-spaces=\"true\">    For flippers after interest rates have fallen, or for those who have the cash available to undertake a rehabilitation project to rent and refinance at a later date.<\/span><\/p>\n<aside class=\"my-10 xl:my-4\">\n<p class=\"font-bold mt-0 mb-4 text-xl text-slate capitalize\">You might also like<\/p>\n<\/aside>\n<h2><span data-preserver-spaces=\"true\">Small multifamily homes are the new starter homes<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">according to<\/span><a rel=\"noopener\" target=\"_blank\" class=\"editor-rtfLink\" href=\"https:\/\/www.realtor.com\/news\/real-estate-news\/townhouses-duplex-multifamily-construction\/\"><span data-preserver-spaces=\"true\">    realtor.com<\/span><\/a><span data-preserver-spaces=\"true\">Based on data received from<\/span><a rel=\"noopener\" target=\"_blank\" class=\"editor-rtfLink\" href=\"https:\/\/eyeonhousing.org\/2026\/03\/best-year-for-missing-middle-construction-since-2007\/\"><span data-preserver-spaces=\"true\">    National Association of Home Builders<\/span><\/a><span data-preserver-spaces=\"true\">Small <\/span><span data-preserver-spaces=\"true\">multi Family<\/span><span data-preserver-spaces=\"true\">    New construction two- to four-unit homes are filling the starter home gap. <\/span><span data-preserver-spaces=\"true\">financing<\/span><span data-preserver-spaces=\"true\">    These builders have it easier because they are larger and make sense financially for homeowners as the rental income offsets the mortgage payments.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">investors could <\/span><span data-preserver-spaces=\"true\">look into<\/span><span data-preserver-spaces=\"true\">    Buying these too, especially new investors looking to start their zamindari journey, <\/span><span data-preserver-spaces=\"true\">Because<\/span><span data-preserver-spaces=\"true\">    They qualify for FHA loans that require a 3.5% down payment.<\/span><span data-preserver-spaces=\"true\">    When refinancing a former personal residence into a traditional mortgage, by rinsing and repeating, investors can accrue a larger portfolio in a shorter period of time.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">In many cases, urban infill lots accommodating smaller multifamily properties have replaced the older single-family housing stock as zoning laws changed to allow more housing. <\/span><span data-preserver-spaces=\"true\">in new development<\/span><span data-preserver-spaces=\"true\">, <\/span><span data-preserver-spaces=\"true\">Outside city centers and established suburbs, <\/span><span data-preserver-spaces=\"true\">two to four units<\/span><span data-preserver-spaces=\"true\">    sit together at home <\/span><span data-preserver-spaces=\"true\">houses<\/span><span data-preserver-spaces=\"true\">    and single-family homes.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u201cIn both cases, the appeal is affordability and access to the neighborhood <\/span><span data-preserver-spaces=\"true\">can&#8217;t always be achieved<\/span><span data-preserver-spaces=\"true\">    &#8220;These townhomes or duplexes offer entry-level buyers the opportunity to purchase a home in the neighborhood of their choice without spending more than they can afford,&#8221; Joel Berner, senior economist at Realtor.com, said in a press release.<\/span><\/p>\n<h2><span data-preserver-spaces=\"true\">Final Thoughts: Best Cities to Invest in a Starter Home<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">The scope for generating cash flow from starter homes is only going to increase as a slate of zoning reforms move through the legal system to increase housing across the country. Often, this means building smaller multifamily units in place of older single-family homes. In others, it means creating <\/span><span data-preserver-spaces=\"true\">ADU<\/span><span data-preserver-spaces=\"true\">    Also renovate an existing single-family structure where lot size allows. In all instances, the opportunities for flippers and homeowner investors in the starter-home space are plentiful.  <\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Some cities are more favorable to investors looking for a starter home than others. Small metro areas are mostly located in the Northeast, Midwest, and South.<\/span><a rel=\"noopener\" target=\"_blank\" class=\"editor-rtfLink\" href=\"https:\/\/www.realtor.com\/news\/trends\/best-markets-cities-first-time-homebuyers-2026\/\"><span data-preserver-spaces=\"true\">    realtor.com<\/span><\/a><span data-preserver-spaces=\"true\">    The report shows. Cross-referencing that report with this comprehensive analysis<\/span><a rel=\"noopener\" target=\"_blank\" class=\"editor-rtfLink\" href=\"https:\/\/constructioncoverage.com\/research\/best-cities-to-find-a-starter-home\"><span data-preserver-spaces=\"true\">    construction coverage<\/span><\/a><span data-preserver-spaces=\"true\">    Using data from the U.S. Census Bureau, Zillow, Redfin, and Freddie Mac will give you exactly where to start your starter home investing career.<\/span><\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>in this article Talk of low interest rates has raised hopes that house flipping could make a comeback. Guess what? It never left. according to a New report from New WesternOff-market properties market for local investors flippers 217% more starter homes are supplied to the market in 2025 than homebuilders supply, reshaping the story of<\/p>\n","protected":false},"author":1,"featured_media":14686,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[58],"tags":[6971,7171,1361,7172,2539],"class_list":["post-14685","post","type-post","status-publish","format-standard","has-post-thumbnail","category-devotionals","tag-builders","tag-flippers","tag-homes","tag-starter","tag-supply"],"_links":{"self":[{"href":"https:\/\/christiancorner.us\/index.php\/wp-json\/wp\/v2\/posts\/14685","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/christiancorner.us\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/christiancorner.us\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/christiancorner.us\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/christiancorner.us\/index.php\/wp-json\/wp\/v2\/comments?post=14685"}],"version-history":[{"count":1,"href":"https:\/\/christiancorner.us\/index.php\/wp-json\/wp\/v2\/posts\/14685\/revisions"}],"predecessor-version":[{"id":14688,"href":"https:\/\/christiancorner.us\/index.php\/wp-json\/wp\/v2\/posts\/14685\/revisions\/14688"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/christiancorner.us\/index.php\/wp-json\/wp\/v2\/media\/14686"}],"wp:attachment":[{"href":"https:\/\/christiancorner.us\/index.php\/wp-json\/wp\/v2\/media?parent=14685"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/christiancorner.us\/index.php\/wp-json\/wp\/v2\/categories?post=14685"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/christiancorner.us\/index.php\/wp-json\/wp\/v2\/tags?post=14685"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}