Photo Source: Instagram via @homebunch

With demand for less expensive, entry level, starter homes steadily increasing, owners of these homes have seen their equity rise at almost double the pace than that of the most valuable, luxury homes. At an average annual rate, starter homes have seen an increase of 8.5% in value while the most expansive homes have seen only a 3.6% gain. Stretched over the past five years, the analysis showed a 44% equity gain for owners of starter homes compared to only 27% for owners of high-end homes.

Last week the Housing Starts and Permits report for January was released, showcasing quite a gain for both, starts and permits. However, while some experts might argue single-family is lagging and multi-family drove the increase—this is true—they failed to highlight how multi-family homes can be a cornerstone to entry level homes for first-time homebuyers, millennials, and singles. It’s a good thing to see so many multi-family Housing Starts and Permits driving the report.

Compared with historical norms, the overall cost of the U.S. housing market is still affordable. Mortgage rates and home prices are rising—with very small odds of home value declines this year in most of the major metros—but with the new tax changes, many first-time homebuyers and millennials will likely see lower tax rates and have more after-tax income, helping them save more for a future home. Further, several markets are considered undervalued—great opportunity to get in on a home investment.