Millennials are about 50% of the buyers in real estate market. Of these vast amount are looking for an “affordable” home because it’s their first one. The problem is not so much lack of demand as is lack of appropriate supply. Builders are shunning away from starter homes for bunch of reasons: most of starter home demand is in urban areas where there is no land available, other places land is too expensive, cost of labor is expensive as are inputs like lumber and gypsum... instead builders look to build homes with high margin so they themselves can stay afloat. If you look at the housing starts you will notice that builders are making about half as many units as the peak in 2006. Builders remember the crisis of 2008 and do not want to be overstretched into too many developments so they are very choosy of the timing and type they want to do.