Quoted: Prior to the Great Recession, University of Wisconsin-Madison applied economics professor and community development specialist Steven Deller said there was a typical “flow” of new houses being developed.
Construction of new housing “plummeted” after the housing bubble burst in 2008 and never came back, Deller said.
He said many of the developers in the starter home market were crushed during the Great Recession, banks have become hesitant to make loans for starter home developments and the cost of building materials continues to rise.
“The economics are just not in favor of building those starter homes,” he said. “And that’s where a lot of communities are really struggling because the developers that they do have that are interested are saying, ‘I just can’t make it pencil out.'”