Article: What Happened to the 'Starter Home?'
I've linked and commented on different articles about the Millennial Home Buying Market and Starter Homes in the past, but this one from MarketWatch.com, titled 'What Happened to the Starter Home?: Why They Aren't What They Used to Be', stood out for one specific reason. It was the first piece I have read that re-framed the Starter Home as a potential first and last home. That doesn't mean to imply that first time homebuyers should be searching out the home they plan to ultimately die in, but it does point to a growing trend (backed by National Association of Realtor research) that rather than buying a starter home and planning to upgrade in five years or so, first-time homeowners are buying and staying put.
“When they do purchase, they’re planning on living there longer than buyers that we’ve seen in the past,” says Jessica Lautz, NAR’s managing director of survey research. “They’re expecting to live there 10 years.”
Another survey referenced in the article, conducted by Bank of America in early 2016, went on to find that 75% of first-time buyers would prefer to skip the starter home stage and find a house that meets their present and future needs. Finally, more than one-third of those surveyed (35%) said they intended to be “one and done” — actually planning to retire in their first home. Sounds to me like we might be entering the age of the Starter Home 2.0.
|New rendering of the Starter Home 2.0 Oakley Interior