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The traditional idea of a “starter home” is becoming increasingly outdated as rising prices, larger floor plans and shifting buyer expectations reshape the U.S. housing market, according to The Washington Post.
Starter homes were once recognized as smaller, more modest houses—often in need of some renovation—purchased by first-time buyers who planned to live in them for a short time before trading up. Today, that concept is harder to find, as higher costs and bigger homes shut many entry-level buyers out of the market.
Builders have been constructing progressively larger homes for decades. Nearly half of all new homes built in 2022 had four or more bedrooms, according to U.S. Census Bureau data, compared with just one in five in the 1970s. More space and higher-end features have driven up costs, pushing the U.S. median home price to $410,800—nearly $100,000 higher than in 2019.
Buyer preferences have also shifted. Nearly all new homes now include at least two full bathrooms, up from about 60% in the 1970s.
The trends have left fewer affordable choices for first-time buyers seeking a foothold in homeownership, raising questions about whether the modern housing market still has room for a true starter home.
