The report says the nation’s housing affordability challenge is linked not only to the number of existing homes but also to the limited supply of entry-level properties accessible to first-time buyers.
Homes priced under $300,000 typically represent the entry point for first-time buyers and key workers — and the report says the segment faces the biggest supply problems.
At the same time, the housing inventory is available. Data from US Census Bureau it shows that almost one in 10 households across the country is vacant.
West’s new president and founder Kurt Carlton said the data shows a shift in how entry-level housing supply is entering the market.
“What if the real housing problem isn’t that we’re not building enough houses, 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 affordable housing is available where there is access. By 2025, small local private investors will be the largest providers of first-time housing in America.
“They don’t build subdivisions – they renovate existing homes that would otherwise be underutilized and return them to productive use. The Great Renovation restores the first rung of the housing ladder.”
Investors own the entry-level offering
According to the report, investors accounted for 83.75% of new homes priced under $215,000 and 69.5% of properties under $250,000.
New construction remains focused on high price points. Just under 11% of new homes built in 2025 were delivered in a 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 renovations and were considered unlikely to attract traditional buyers.
Bare stock, local market trends
According to the study, there are more than 15 million vacant homes across the country and more than 6.7 million homes in need of repair.
Investor-driven transactions also create economic activity linked to the wider real estate sector.
The report estimates that buy-to-sell and resell-related renovations for investors will generate more than $20.9 billion in commissions for listing agents by 2025.
These jobs support jobs in many areas related to real estate, including brokerage, lending, title services and other local businesses.
The report says that investor activity is outpacing new construction in many metropolitan areas when it comes to producing entry-level housing.
Examples cited include St. Louis, where investor activity delivered 1,069% more starter homes than builders, and Boston, where investors provided 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 consumers and agents
Starter homes are widely considered an important part of the housing market because they allow first-time buyers to enter home ownership and create movement across the upper price ranges.
If entry-level inventory is limited, fewer buyers can move into homeownership — a drag on the entire housing market as existing owners are slow to sell or upgrade to larger homes.
For real estate agents and sellers, the findings shed light on the growing supply of real estate that is increasingly shaping entry-level sales.
Investor-driven renovations often transform distressed or outdated properties into move-in ready homes that can be listed and sold through traditional commercial 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 their efforts — especially relationships with local investors who often find and resell homes.
