7 Signs Starter Homes May Be a Thing of the Past
If you’re a millennial, which puts you anywhere from about 20 through 36, you’re in the age range where young people in generations past would have purchased their first home.
In the years after World War II, young adults new to the workforce expected to rent for a while as they saved for a down payment on their “starter” house.
These small, affordable homes served as an entry point into the world of homeownership. Young couples would often live in these starter homes for a few years and then trade up to something larger and better suited to raising families.
If you’re looking to do the same thing today, you might be surprised to learn that those starter homes just aren’t out there anymore—at least not in the numbers they used to be.
In addition, today’s financial experts don’t always recommend following the traditional starter-home route to homeownership. Changes in the economy and in buying patterns are leading to what some are calling “the death of the starter home.” If you’re thinking about buying your first home, keep reading—we’ll let you know why and how the housing market has changed so you can make an informed decision.
1. Fewer Homes in the
Housing Market
According to Business Insider, one reason it’s more difficult than it used to be to find a starter home is that there are fewer homes on the market in all price ranges. In the fall of 2017, approximately 15 percent fewer homes were up for sale than at the same time in the prior year. Leading real estate site Trulia quantifies this trend for starter homes specifically, reporting that the number of available starter homes dropped nearly 44 percent between 2012 and 2016.
2. Previous Starter Homes Are Now Rentals
Rental Homes
During the recession and housing downturn of the previous decade, many homes went into foreclosure. As homeowners experienced a reduction in income, some had to let their homes go back to the bank or the mortgage company.
MarketWatch explains how affordable homes were auctioned to real estate investors at bargain-basement prices and then turned into rentals. In more typical times, those homes would have been cycling back into the market as their owners moved on to larger homes.
3. Trade-Up Homes Are Also in Short Supply
Real Estate Market
Even if they want to move out of their small, inexpensive homes to larger trade-up properties, homeowners today are finding it hard to do so because, like starter homes, trade-up homes are also in short supply.
Trulia cites a decline of about 41 percent in the number of trade-up homes on the market from 2012 to 2016. Instead of selling their current homes when it’s time for a change, these owners are having to wait longer until suitable trade-up options become available.
4. Lower Profit Margins for Home Builders
New Home Builds
Not only are fewer existing starter homes re-entering the market, but home builders are also opting not to construct new ones because the profit margin is less on a starter home than on a more expensive one.
As the cost of building materials and the lots on which to build increases, developers are finding it more difficult to construct affordable new houses in the starter market.
Realtor.com details how home builders are shifting their focus to constructing expensive homes for older buyers, who often have better credit and available cash.
5. Long-Term Investment Considerations
Experts are beginning to ask whether buying a starter home is as good a financial decision as it was a couple of generations ago.
According to real estate expert and Zillow contributor Brendon DeSimone, it might not be. When you buy a starter home, you’re assuming that you’ll be moving in a few years.
Today, however, more first-time home buyers are looking for a house they can stay in longer so they can put down roots in the community. New homeowners are also wondering if the cost of the upkeep and repairs that are necessary to make some older homes livable is worth it in the long run.
6. Homeowners Opting to Remodel Rather Than Sell
Remodel Vs. Sell
Those who purchased homes during the housing crisis got some very attractive interest rates on their mortgages. According to an article in the Chicago Tribune, these homeowners are not eager to sell when that means buying new homes at higher interest rates.
Instead, many who live in existing starter homes are opting to renovate to give their homes the space, style, and amenities they want rather than selling their homes and buying trade-ups.
7. Personal Debt Making It Difficult to Afford a Mortgage
Student Loan Debts
Your grandparents didn’t start out in life burdened by student loans.
Today,however, with more students than ever attending college and skyrocketing tuition rates, millennials are often saddled with education debt that makes it difficult to afford starter homes.
According to a Bloomberg economist, student debt is “a major reason why millennials aren’t buying homes.” Heavy student debt could be responsible for as much as a 35 percent decline in the purchase of starter homes.
Instead, millennials are renting longer while they’re paying off their debt and hoping to purchase more expensive homes in the future when their higher salaries allow.
Ready to start looking for a home? Before you do, make sure you’ve done the proper research and planning. From attending open houses to negotiating the closing costs there are a lot of steps to buying a home. It helps to know some tips and lessons to make the tedious process a bit easier.
Let’s Do Setup A Lunch Appointment Today!
Very good article post. Really looking forward to read more. Cool. Talia Fritz Lissie
There is obviously a bundle to realize about this. I believe you made various good points in features also. Gelya Kirk Holzman
Right away I am ready to do my breakfast, when having my breakfast coming again to read further news. Merlina Benoit Brandes
Thank you ever so for you blog post. Thanks Again. Great. Pavla Sansone Packston
Nice piece of info! May I reference part of this on my blog if I post a backlink to this webpage? Thx. Oona Rand Bel
How To Buy Ed Drugs From Canada faitmetaix buy cialis online with a prescription TosseGeatest Lasixonline
You completed a number of nice points there. I did a search on the subject matter and found nearly all folks will go along with with your blog. Emelda Hermy Sephira
Not sure, it was a bit cool for swimming when I went. Tricia Barny Devan
Admiring the time and energy you put into your blog and detailed information you provide. Terra Stevy Socrates
We provide bot followers but they almost look real with their realistic looking, high-quality characteristics. Cicily Peterus Maurreen
This is one awesome blog. Really thank you! Really Cool. Ronica Marcello Meehan
Please take a look at the internet sites we stick to, which includes this a single, because it represents our picks in the web. Dulcea Page Rebekkah
Some really prime posts on this internet site, saved to bookmarks. Averil Anatol Lankton
Really appreciate you sharing this article post. Thanks Again. Cool. Jennee Augustine Pavia
Hello, just wanted to say, I loved this post. It was funny. Tiena Ellwood Zulema
Rattling nice layout and good content , hardly anything else we require : D. Kameko Frederik Gotcher
I visited various sites but the audio feature for audio songs current at this web page is actually marvelous. Albertina Broddie Sully
At this time it seems like Expression Engine is the preferred blogging platform out there right now. Norean Malvin Namara
Reiki is hard to master, but i would really love to learn it in a short period of time. Tony Dud Sweet
Cudos to you for caring about the usefulness of your content, and therefore your readers. Alameda Lukas Renelle
We came across a cool web page that you just might take pleasure in. Take a appear in case you want. Sheela Maxie Gotthelf
I tried limping with Aces the guy caught up with me and I lost all my chips because I slowed played the flop. Darrelle Jarrid Aila
If you wish for to obtain a good deal from this post then you have to apply these strategies to your won webpage. Cherri Charlton Anne-Marie
If you wish for to get a great deal from this post then you have to apply these methods to your won blog. Tommi Rockwell Jeddy
Good respond in return of this issue with solid arguments and explaining everything concerning that. Ardenia Stanton Cherish
I think this is a real great article post. Really thank you! Awesome. Alexia Darnell Bertina
Hi there, I do think your web site could be having browser compatibility issues. Kerri Cirillo Hanforrd
Levitra Contro L’Impotenza faitmetaix cialis with dapoxetine TosseGeatest Can Pregnant Women Take Amoxicillin
Very informative blog article. Really thank you! Fantastic. Mona Valentine Meador
There is visibly a lot to know about this. I feel you made certain nice points in features also. Lari Panchito Kauffman
Here are some things you should know if your kids are interested the playing soccer. Kylynn Uriah Lock
viagra albuquerque prescription no viagra australia boots viagra online
Very nice post. I simply stumbled upon your weblog and wished to mention that I’ve truly enjoyed surfing around your blog posts.
Taxi moto line
128 Rue la Boétie
75008 Paris
+33 6 51 612 712
Taxi moto paris
Do you mind if I quote a couple of your posts as long as
I provide credit and sources back to your weblog? My website is in the exact same area
of interest as yours and my users would really benefit from a lot of the information you provide here.
Please let me know if this okay with you. Thanks a lot!
Si necesitas un préstamo o un préstamo rápidamente online, consulta nuestro ranking.
A lot of thanks for each of your hard work on this web page. Kim really likes going through investigation and it’s really easy to understand why. Many of us know all of the dynamic method you make invaluable steps on this web blog and as well as improve participation from people on that idea so our girl is certainly learning a lot of things. Have fun with the remaining portion of the new year. You are conducting a pretty cool job.
I am also commenting to let you know of the great encounter my friend’s daughter found reading through your web page. She figured out numerous issues, not to mention what it’s like to have an amazing giving mood to have men and women really easily have an understanding of selected hard to do subject areas. You really exceeded our own expectations. Many thanks for imparting the interesting, safe, explanatory and even easy thoughts on the topic to Janet.
My spouse and i got really joyful that Jordan managed to do his reports through the entire precious recommendations he had through the web pages. It is now and again perplexing to just find yourself handing out secrets which people may have been selling. So we keep in mind we have got the writer to give thanks to for that. The most important illustrations you have made, the simple web site navigation, the relationships you will help to foster – it’s got many overwhelming, and it’s really leading our son in addition to the family know that the situation is exciting, which is rather mandatory. Thank you for everything!
I’m just commenting to let you be aware of of the extraordinary discovery my cousin’s daughter experienced going through your site. She even learned lots of issues, most notably how it is like to have a very effective giving mindset to have many others just gain knowledge of chosen extremely tough matters. You really did more than our desires. Many thanks for distributing the important, healthy, educational and as well as easy thoughts on the topic to Gloria.
Enjoyed every bit of your article. Really looking forward to read more. Cool. Bernadine Felizio Keverian
tinder dating app , what is tinder https://tinderdatingsiteus.com/
Hi I am so happy I found your blog, I really found you by error, while
I was looking on Aol for something else, Anyhow I am here now and would just like to say
cheers for a fantastic post and a all round enjoyable blog (I also love the theme/design), I don’t have
time to read it all at the minute but I have bookmarked it and
also added your RSS feeds, so when I have time
I will be back to read a great deal more, Please do keep
up the awesome job.
Wow, fantastic weblog layout! How lengthy have you ever been running a
blog for? you make blogging glance easy. The whole glance of your web site is
wonderful, as smartly as the content material!
Thank you ever so for you post. Really thank you! Fantastic. Sally Chas Alecia
Saved as a favorite, I really like your website!
free dating http://freedatingsiteall.com
I really like your blog.. very nice colors & theme. Did you create this website yourself or
did you hire someone to do it for you? Plz reply as I’m looking to construct my own blog and
would like to find out where u got this from. thanks
Man, those popsicles look awesome. Proper glasses are pretty much a requirement for the Bourbon. One of these posts I want to here more about the beer availability. I used to brew and helped friends start a brewery, So I like to enjoy the occasional beer. Sheena Vin Honor
Hi! Do you know if they make any plugins to protect against hackers?
I’m kinda paranoid about losing everything I’ve worked
hard on. Any suggestions?
You really make it appear really easy along with
your presentation but I in finding this matter to
be really one thing that I believe I would by no means understand.
It seems too complicated and extremely vast for me. I’m having
a look forward in your subsequent publish, I will try to get the hold of it!
This is really interesting, You are a very skilled blogger. I ave joined your rss feed and look forward to seeking more of your fantastic post. Also, I ave shared your site in my social networks! Melanie Saunders Melissa
This is a good tip particularly to those new to
the blogosphere. Short but very precise information… Many
thanks for sharing this one. A must read article!
Attractive section of content. I just stumbled upon your website and in accession capital to assert that I get in fact enjoyed account your blog posts.
Any way I will be subscribing to your feeds and even I achievement you access consistently
rapidly.
I do not know if it’s just me or if perhaps everybody else experiencing
issues with your site. It appears as if some of the written text within your content are running
off the screen. Can somebody else please provide
feedback and let me know if this is happening to them as well?
This may be a issue with my internet browser because I’ve
had this happen before. Appreciate it
prescription online brand viagra canada pharmaceuticals online generic
walmart online pharmacy canadian pharmacy cialis board of pharmacy
Viagra Super Active costco pharmacy pricing canada online pharmacies
on line pharmacy pharmacy prescription discount pharmaceuticals
viagra canada pfizer viagra in south africa viagra in portland
viagra generic sale buy phizer viagra wham 1180 viagra
go coupon viagra order drugs online
Hi, this weekend is pleasant in support of me, as this point in time i am reading this wonderful educational article here at my residence. Calypso Tomlin Cleland
I quite like looking through an article that can make people think. Also, thank you for permitting me to comment! Roanne Ban Konrad
pain meds online without doctor prescription dapoxetine pharmacy tech
lowcost viagra canadian king pharmacy viagra super force reviews
quik cash loans clinton mo blacklisted payday cash loans cash advance fees rbc
what will cialis do to a woman changing from viagra to cialis nome cientifico do cialis
cash advance azusa when do you have to pay back payday loans always approved cash loans
military payday loans san diego cash loans in kannapolis nc direct loan lenders payday-loans
Way cool! Some extremely valid points! I appreciate you penning this write-up plus
the rest of the website is also really good.
buy viagra in canada legally viagra for sale in florida what is better viagra or cialis
cialis 20 mg with alcohol can you take 2 cialis cialis cuando se toma
Thanks so much for the article. Really thank you! Much obliged. Rhianon Sayres Minette
I agree 100%. I wish more people were made aware of this problem Danny Jacob McCallion
Very nice post. I just stumbled upon your blog and wished to say that I ave truly enjoyed surfing around your blog posts. After all I all be subscribing to your feed and I hope you write again soon! Ulrike Tait Sherar
Your style is really unique in comparison to other people I have read stuff from. Thank you for posting when you have the opportunity, Guess I will just bookmark this site. Kippie Kalle Browne
payday advance loans riverdale ga payday loan bartlett tn cash loans in springfield ohio
Pretty component of content. I just stumbled
upon your website and in accession capital to say that I get in fact enjoyed account your
blog posts. Any way I’ll be subscribing for your augment and even I success you get right of entry
to constantly quickly.
Today, considering the fast life-style that everyone leads, credit cards have a big demand throughout the economy. Persons throughout every area are using the credit card and people who aren’t using the credit cards have arranged to apply for 1. Thanks for revealing your ideas about credit cards. https://psoriasismedi.com best psoriasis treatment
normal dose of viagra online generic viagra what is in viagra
kpd1k rrh6n alkm
g4vz4 n7qn4 9ipf