After the housing market crashed in the mid-2000s, builders shifted their focus to higher-end homes where they could make more money. That’s led to a shortage of starter homes, which has driven up prices at the lower end of the market. But there are signs the entry-level market is coming back. The research firm Capital Economics predicts 55% of new homes will sell for less than $300,000 next year, up from just 40% two years ago. But with a smaller price tag may come a smaller house.
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