Lennar, a major builder, recently unveiled affordable housing in Texas. In a small community in Texas, the company provides a starter home for only $130,000 in San Antonio.

According to Lennar’s website, the 350 square foot houses can be expanded up to 660 square feet units at a price point of $163,000.

As the public’s frustration grows with housing affordability and high interest rates, builders are looking for ways to provide more affordable housing options.

The problem is that when builders do roll out a new product, the public immediately begins to criticize due to the lack of what some consider necessities in a home.

If one studies the opportunity here, the realization that the down payment and monthly payment on a home of this price is very reasonable.

Using an online mortgage calculator, I entered the $130,000 sale price with 10% down ($13,000), and at an interest rate of 7.25%, the principal and interest payment on the home was only $798! That means the borrower would only need to make $2,660 in gross income per month, which translates to $31,920 per year. That is very affordable housing.

Are you going to get a ½ acre lot, swimming pool, screened porch, and other amenities? Of course not. But it does provide a home and encourages home ownership.

Of course, the internet is not kind, and users immediately jumped on the negativity bandwagon.

One Instagram user commented, “I had no idea shrinkflation could apply to houses!”

Others referred to it as a $100,000 jail cell.

Ultimately, this type of housing is an alternative to apartment living. It allows the owner to build up home equity, thereby helping to create wealth.

This type of living won’t work for everyone, but for some, it enables them to put a roof over their heads at an affordable price.