The report argues that the nation’s housing affordability challenge is tied not only to the number of homes available but also to the limited supply of entry-level properties accessible to first-time buyers.
Homes priced below $300,000 generally represent the entry point for first-time buyers and essential workers — and the report says that segment faces the most intense supply constraints.
At the same time, housing inventory exists that is not being used. Data from the U.S. Census Bureau indicates that nearly one in 10 homes nationwide is vacant.
New Western president and co-founder Kurt Carlton said data reflects a shift in how entry-level housing supply is entering the market.
“What if the real housing crisis isn’t that we haven’t built enough homes, but that we’re letting millions of starter homes disappear?” he said. “Fixing today’s housing challenge isn’t just about building more homes. It’s about whether attainable housing actually exists at the entry point. In 2025, small, local independent investors quietly became the largest suppliers of starter homes in America.
“They aren’t building subdivisions — they’re revitalizing existing homes that would otherwise remain underutilized and returning them to productive use. The Great Renovation is restoring the first rung of the housing ladder.”
Investors dominate entry-level supply
According to the report, investors accounted for 83.75% of new housing inventory priced below $215,000 and 69.5% of inventory below $250,000.
New construction remains concentrated at higher price points. Just under 11% of new homes built in 2025 were delivered in the starter-home price band of $261,000 or less.
The report also found that many homes purchased by investors (72%) were not listed on the open market because they required significant repairs and were considered unlikely to attract traditional buyers.
Vacant stock, local market trends
According to the analysis, there are more than 15 million vacant homes across the country along with more than 6.7 million occupied homes that require substantial repairs.
Investor-driven transactions also generate economic activity tied to the broader housing sector.
The report estimates that purchases and resales connected to investor renovations generated more than $20.9 billion in listing agent commissions in 2025.
These transactions support activity across several sectors tied to real estate, including brokerage, lending, title services and other local businesses.
The report says investor activity is outpacing new construction in several large metropolitan areas when it comes to producing entry-level housing inventory.
Examples cited include St. Louis, where investor activity delivered 1,069% more starter homes than builders, as well as Boston, where investors supplied 571% more homes in the entry-level segment.
Atlanta and Charlotte also showed significant differences, with investors delivering 296% and 149% more starter homes, respectively.
Impact on homebuyers and agents
Starter homes are widely considered a key component of the housing market because they allow first-time buyers to enter homeownership and create movement across higher price tiers.
When entry-level inventory is limited, fewer buyers can move into homeownership — slowing activity across the rest of the housing market as existing owners delay sales or upgrades to larger homes.
For real estate agents and brokers, the findings shed light on a growing source of housing inventory that increasingly shapes entry-level transactions.
Investor-driven renovations often convert distressed or outdated properties into move-in-ready homes that can be listed and sold through traditional brokerage channels.
As entry-level inventory remains limited in many markets, renovated homes may represent a larger share of properties available to first-time buyers. That dynamic can influence where agents focus efforts — particularly relationships with local investors who regularly acquire and resell homes.
