Starter Homes Are a Thing of the Past

August 16, 2016

Starter Homes Are a Thing of the Past
 
Millennial home buyers have brought a lot of changes to the world over the past few years, and they have created a great deal of change in the housing market as well. Millennials are a buying breed all their own, and if you are a millennial on the market for a new home, you are likely looking for drastically different house features than your parents.
 
Millennials are those between the ages of 25 and 34, and they are primed and ready to begin purchasing their first homes now that they are largely back to work and better employed than they were just a few years ago.
 
Millennials have learned a lot of tough lessons from the past few decades of seeing the financial troubles of their parents and friends, watching the financial collapse of 2008, and leaving college with tremendous amounts of debt.
 
With newly released statistics altering millennials that they will need to save for more than 10 years before they could afford a home, millennials are wising up to buying opportunities and skipping some traditional steps in the home investment process.
 
Today’s first-time homebuyers are swapping old home buying standards for shrewd buying choices, and this had led to many millennials skipping the step of buying a starter home first. A whopping 75% of millennials are taking the plunge into real estate by skipping the starter home, according to a 2016 Bank of America’s Homebuyer Insights Report.
 
Not only are millennials turning down smaller starter homes, which typically last buyers around five years, but they are investing in larger, family-friendly homes and smaller community-based home environments like condominiums in which they can begin raising their families through elementary school.
 
When the biggest hindrance to buying a home is saving up enough money for a down payment while simultaneously building good credit, it is making more fiscal sense for millennials to spend that hard-earned money on a long-term investment like a larger home or an easily sellable condominium.
 
Larger homes allow couples the freedom to expand their families without worrying about running out of room too quickly. Millennials are far less interested in purchasing homes that require fixing, so waiting to find that exact right home that supports their plans now instead of later is also a part of the plan. And they are willing to work extremely hard and sacrifice a lot of vacations and other luxuries in order to make that first home purchase.
 
Though a condominium may not seem like the ideal situation for doing the same, the setup of a building is remarkably more communal than a suburb could be, and allow millennial families to work together to create spaces within the building that suit the needs of everyone who lives there, like rooftop gardens, in-building gyms, and courtyards that are child friendly.  
 
After paying back high student loan debts, working nights and weekends to save every penny, and staying put in their parents’ homes for years longer than Gen Y buyers, millennials are not willing to waste their money on a home that is too small, too old, or too limiting down the line. For them, even if it takes a few years longer to achieve their first home buying goals, it’s all worth it in the end if they can get their money’s worth.


 

Recent Blog Posts

Stay up to date on the latest real estate trends.

5 Best Wineries Near Tucson

Jameson Gray  |  November 22, 2021

Wine is universal — no matter your tastes, there’s always a little something you’ll like.

“The Foothills” in Tucson, Arizona: Which Community is Right for You?

October 7, 2021

Finding the right community is difficult, but Arizona’s luxurious communities likely have a place for you!

5 Best Golf Courses in Tucson

September 1, 2021

Tucson, Arizona, has no shortage of dazzling golf courses

Everything You Need to Know About Indoor/Outdoor Spaces

April 6, 2021

The blend of indoor/outdoor space is one of the most sought-out living trends recently—but what exactly is it?

2021 Seller's Guide

February 20, 2021

Conventional wisdom states that a hot seller's market—the combination of remarkably high demand and historically low inventory—equals an unparalleled negotiating posit… Read more

Spotlight on HK Associates Architects

January 25, 2021

HK Associates is an award-winning architecture firm composed of dynamic husband-and-wife team Kathy Hancox and Michael Kothke.

Oro Valley Views: The Best Scenic Spots in Town

November 19, 2020

Oro Valley has no bad angles. Flanked by the Santa Catalina Mountains and the Sonoran Desert, the magnificence of Arizona’s landscape provides a dramatic backdrop in e… Read more

5 Ways to Welcome Autumn in Oro Valley

October 22, 2020

Surrounded by the majestic beauty of the Santa Catalina and Tortolita Mountains only a few miles north of Tucson, Oro Valley is known as a vibrant, family-friendly com… Read more

5 Can’t-Miss Historic Sites in Tucson

September 24, 2020

Whether you’re a history buff or simply looking for an activity to pass the time, Tucson is filled with an abundance of historic sites.

LOCAL EXPERTISE. GLOBAL CONNECTIONS.


We offer the highest level of expertise and service with integrity. The Gray | St. Onge Group is a dedicated team with years of experience as leading real estate agents in Tucson, Arizona, and the surrounding area.

Contact Us