The starter home is dead — first-time buyers aim for ‘forever homes’ as living costs surge
First-time homebuyers in the US are now averaging around age 40 and are skipping the traditional 'starter home' to buy 'forever homes' that can accommodate their long-term needs. About 65% of would-be buyers expect their first home to be their only one, driven by rising living costs and multigenerational living needs.
The traditional starter home is becoming a thing of the past as first-time buyers in the US are now entering the housing market later than ever, averaging around age 40. They are targeting homes that can handle their long-term needs, such as raising a family, housing older relatives, and generating rental income. About 65% of would-be buyers expect their first home to be their only one, signaling a move away from the traditional trade-up model. Multigenerational living is a driving force, with two-thirds of millennial homeowners prioritizing properties with room for parents or grandparents. Rising costs are also changing expectations around ownership, with more than half of non-homeowners believing buying a home is out of reach. The shift in buyer behavior may be driven by economic pressures and could evolve again if conditions improve.
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