Do Starter Homes Still Exist?
Historically, people buying their first home have gravitated toward houses that are smaller and more affordable.
For starters, the more modest square footage of these so-called “starter homes” makes them easier to maintain for first-time homeowners, who may be accustomed to a landlord taking care of everything from clogged drains to yard work. Perhaps more importantly, these cheaper houses actually fit into new homebuyers’ budgets — often, they’re all that a single professional or young couple can realistically afford.
The thinking used to be that eventually these young, upstart homeowners would outgrow their starter home and, as they advanced in their careers, could afford to move into a larger space. But in today’s ridiculously hot housing market — where buyers are lining up around the block for showings and homes are selling for tens, even hundreds of thousands of dollars over the asking price...