Jackson, MS Struggles with Low Starter Home Availability Compared to Other Cities

For many prospective homeowners, the search for an affordable starter home can feel like a daunting task. A recent analysis by Realtor.com® explores the changing landscape of entry-level housing across the country, revealing where these crucial properties are becoming more or less common.

Nationally, starter home options have felt increasingly scarce as rising prices and climbing mortgage rates compound the challenge. According to research, the national share of starter homes in active inventory fell from 38.1% in August 2019 to 36.2% in August 2026. Moreover, during that same period, starter home prices rose 30.8%, from roughly $260,000 to $340,000.

As a result, some markets have seen a significant shift in their housing stock.

In Jackson, MS, the availability of starter homes has experienced a slight downturn in recent years, reflecting the broader challenges facing many homebuyers.

Starter home availability dips slightly in jackson

A starter home is defined by Realtor.com as a property priced at roughly 80% of a metro's median list price, which captures the relative affordability of the lower end of each local market. These homes are typically smaller and less expensive, making them accessible to a first-time buyer or a household with an income at or below the area median.

In Jackson, the share of starter homes was 36.4% in 2019 and rose to 38.6% in 2022. However, by 2026, the share had decreased to 36.3% of the market's available inventory.

Therefore, this represents a -0.1 point change between 2019 and 2026. This slight decline indicates a modest tightening of the market for entry-level buyers in the Jackson area over the past several years.

How Jackson compares to its neighbors

As Jackson holds a projected 2026 starter home share of 36.3%, it ranks second among neighboring Southern metropolitan areas, trailing only Memphis, TN at 39.2%.

Between 2019 and 2026, Jackson's starter home share showed notable resilience,despite a slight net loss of 0.1 percentage points. This near-zero shift contrasts with neighboring Birmingham, AL and Little Rock, AR, which experienced larger reductions of 2.1 and 1.6 percentage points over the same period, bringing their 2026 shares down to 36.2% and 35.6%, respectively.

In nearby Louisiana, New Orleans suffered a steep drop of 4.4 percentage points to 32.2%, while Baton Rouge contracted by 0.4 percentage points to finish at 32.4%.

Finally, Tennessee neighbors displayed divergent trends, with Knoxville declining by 4.9 percentage points to 31.8% while Nashville-Davidson gained 1.2 percentage points to reach 32.7%.