Starter Homes Vanish as Luxury Thrives: The Reality of the K-Shaped Housing Market Happening Now

Treasury Secretary Scott Bessent recently declared the K-shaped economy “over.” But new data shows the divide remains deeply entrenched in housing—showing up before a sale ever happens, in who is still shopping.Despite fewer entry-level homes available than in 2019, views per property have fallen below their 2019 level, according to the latest Housing Alignment Report from Realtor.com®. If demand for cheaper homes had held steady, scarcer supply should have driven more attention to each listing.Instead, Jiayi Xu, senior economist at Realtor.com and author of the report, describes an “exodus of entry-level demand.”“The disproportionate supply growth in higher tiers combined with the exodus of entry-level demand indicates a market increasingly out of reach for price-sensitive buyers,” Xu says.At the high end of the market, shoppers have been much harder to shake. Luxury inventory has grown significantly since 2019, giving buyers more homes to choose from. However, views per property remain roughly in line with their pre-pandemic pace.Recent Realtor.com transaction data has already shown the split at closing: Sales below $200,000 fell 14.4% year over year through May, compared with a ...