(((Building codes))) have made starter homes non-starters now. You can't build houses like the boomers did because the boomers did their part to lock later generations out of the market with these (((building codes))), (((real estate practices))) and (((mortgage games))). They let the jews take away the prosperity of the generations after the boomers got there easy ride on. The boomers will still tell you how everyone else is just lazy even though they didn't really have to work hard to grab the low hanging fruit that was once abundant but now all gone.
If there was such a market it could be met. As you rightly point out other factors might apply, but they are largely irrelevant as the current generation considers such housing beneath them. Remember, this is the same generation that feels they are entitled to beginning engineering wages while pouring overpriced, burned, coffee, having no experience
I've spoken with builders about this very thing. I've repeatedly been told first time buyers refuse to buy real starter homes. As a result modern starter homes have become mansions in comparison to previous generations. They've effectively destroyed their own market segment and as usual it is always everyone else's fault.
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