There's supposed to be a few more steps along the property ladder than millennials are taking. According to the traditions of previous generations, you start off small with a cheap house, and then move into a larger and more expensive one when your family grows, or when you need more room for storage. It would seem that millennials aren't too keen on living in cramped accommodations.
Rather than buying a cheap home when they're in their twenties, it's now more common for young people to carry on renting until they've entered their thirties, and then buy a larger home when they can afford to do so. That means houses in the two-hundred to three-hundred-thousand-dollar range are struggling to sell, because nobody wants them. Perhaps the real issue might be that starter homes are more expensive than they used to be, or credit checks are too restrictive?