North Columbus News

Nearly half of first-time homebuyers are choosing to skip the traditional "starter home" and instead purchase properties that fit their long-term needs, according to a new study by Renuity Home. The findings reflect a shift in how Americans approach their initial step into homeownership.

The study, which surveyed 1,000 people who bought their first home in the past five years, identified several factors behind this trend. Thirty-four percent of respondents said starter homes were too expensive, while 32% did not want to outgrow their homes quickly. Other reasons included qualifying for larger mortgages than expected (31%), seeing greater long-term investment value in skipping a starter home (26%), and limited availability of entry-level properties (23%). Additionally, some buyers received financial assistance that allowed them to afford more expensive homes (20%).

Demographic shifts are also influencing these decisions. First-time buyers now have a median household income of about $97,000 as of 2024 and an average age of 38, both higher than previous generations. According to data from the National Association of REALTORS (NAR), fewer buyers are purchasing homes with plans for starting families or moving in with partners—only 18% of Gen Z and 17% of millennials reported such intentions. Instead, there is an increase in single buyers, particularly women. The share of first-time buyers who are single women has grown from 11% in 1985 to 24% in 2024.

Longer ownership periods are becoming more common as well. NAR's 2024 Home Buyers and Sellers report indicates that the median time sellers owned their homes reached ten years, up from six years between 2000 and 2008. About 57% of first-time buyers expect to stay in their current homes for at least six years.

While the concept of the "starter home" is not disappearing entirely, it appears to be evolving as buyers adapt to affordability challenges and shifting lifestyle priorities. As one survey respondent noted: "They’re seeking a place to stay, invest in and call home for the long haul."