According to REALTOR Mag, Builders Are Shying Away From Building Starter Homes

The median new home price for 2015 is well over $280,00 in most markets.

Three  Reasons why starter homes are losing traction are:

1.  Land costs are higher

2. Higher fees in building such communities.  Builders often face significant infrastructure and expanded support service costs, which could add an extra 20% to 25% of the cost of a new home.

3. The typical "entry-level" buyer may not want a "starter" home any longer.