Houston real estate developers are turning away from entry-level housing. “Starter homes” are typically priced below $150,000.

Dollarflag New home starts in the area are down to about 9,725 single-family homes for third quarter 2007. The Houston Chronicle reported the recent data, which had been gathered MetroStudy. and they say that this number is 28% below the number of new home starts for third quarter 2006. Turns out, though, home starts in the $225,000+ range were actually up 6.5%.

This was balanced by the fact that housing starts for homes priced $150,000 or below were down 36%.

DEMAND FOR ENTRY LEVEL HOUSING

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