A new generation of homeowners is on the rise, but they’re not getting much to chose from when they’re looking to the Philadelphia suburbs as a place to settle down.

Starter homes have felt the largest squeeze for a number of reasons: Many entry-level homeowners remain underwater, meaning they owe more on their mortgages than their homes are worth, making it unlikely they would sell for a loss. Meanwhile, investors have scooped up properties they can buy for cash and turned them into rentals. Plus, as labor and land costs have risen, developers have chosen to build at the higher end of the market, where margins are more lucrative, writes Caitlin McCabe for philly.com. 

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As a result, many millennials and lower-income shoppers are often stuck renting — or overpaying when they buy. Some entry-level buyers have delayed home purchases for so long that they are now diving straight into “mid-tier” homes after saving for a down payment for sometimes more than a decade, the story continues.

To read the complete story and see a list of suburbs commanding the highest prices for starter homes click here. 

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