Dive Brief:

• The construction industry's current focus is to build pricey homes today, but that is set to change, experts say.
• Builders are building less but earning substantial margins on more expensive homes in the current market.
• Experts believe the market will shift back to more homes at more reasonable prices in the one to two years.

Dive Insight:

New home starts are pacing at about 60-65% of the average annual home-building rate in 2014. 

“Right now, there’s a little bit of a lull due to sticker shock [of high prices], but that will soon pass,” says John Johnson, CEO of David Weekley Homes. 

“We’re starting to see builders say, ‘There’s this untapped niche that is being ignored by much of the market, so I’m going to focus on that,’” says Brad Hunter, chief economist for Metrostudy. “I think that means we’ll start seeing the return of smaller [less-expensive] homes.”