Trulia's most recent Price and Inventory Watch took a look at the changes in supply and affordability for the starter homes, trade-up homes, and premium homes segments of the housing market. The report yielded particularly bad news for the starter-home market, which saw a 12.3% decrease in national inventory as well as requiring starter home buyers to now dedicate 1.3% more of their monthly incomes to their starter homes.

Additionally, problems with starter-home affordability are spreading outside of California:

Over the past year, starter home buyers in the Mountain West, Pacific Northwest, and Gulf Coast of Florida are also beginning to feel the pinch. While a California city – Oakland – still tops the list, starter- home buyers need to spend 8.1% more of their income to buy a home this year in Denver, 6.1% and 5.2% more in Seattle and Portland, Ore., and 5.5% and 4.8% more in Cape Coral, Fla., and Sarasota, Fla, respectively.

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