Are Starter Homes Becoming a Thing of the Past?

For decades, starter homes gave first-time buyers an entry point into the housing market. These smaller, more affordable properties provided a way to build equity, take on the responsibilities of ownership, and eventually move up to something larger. Today, that path looks very different. Rising costs, limited supply, and shifting priorities are making starter homes harder to find and less appealing to many buyers.

Fewer Entry-Level Homes on the Market

Housing prices have climbed steadily over the last decade, and wages have struggled to keep pace. That gap makes it harder for younger buyers to purchase entry-level homes. Builders often focus on larger, higher-margin houses, which leaves fewer small properties available.

A new study by Renuity reveals that many first-time buyers are op