First-Time Home Buyers Want to Skip on Starter Homes

According to Bank of America, 75% of first time home buyers would prefer to skip buying a starter home, and buy one that’s a better long-term fit. They would much rather buy a home that they can grow into, even if they don’t necessarily fit into it now. 69% said they would prefer to save more money and move into a nicer home in the future than settle for a home now.

Of those surveyed, 35% said they want to retire in their first home. 31% said they would like to move into a starter home now. The rest are willing to wait for a better home.

A good portion of the market shows buyers who have a plan are willing to buy a starter home, as opposed to those who want to be a homeowner eventually. Of those with a plan, 41% want a starter home, and 23% without a plan would buy a starter home.

Over 50% said they don’t think they could afford a home due to debt, and another portion says they just don’t want one. They must be content living with their parents, or renting.

An interesting statistic about this survey conveyed that Gen Xer’s put off buying a home more so than Millennials due to debt. 43% of Gen Xer’s put off buying a home as opposed to 32% of Millennials.

Starter homes are good for everyone. You don’t have to stay there for long, and you own your own home, instead of paying rent, which is money you will never see again. If you put a little sweat equity into the home, you can even turn a profit when you decide to upgrade. 

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