Advantage - Jim Whittaker
Create a free HomeFinder Account    Login   |    Register
Welcome!    HomeFinder   |    Log Out
  • Search For Properties
    • Start Search Here
    • Featured Properties
  • Buy A Home
    • Foreclosures Free List Mobile Friendly
    • Our Guarantee
  • Sell Your Home
    • Your Home Sold In 39 Days Guarantee!
  • Explore Places to Live
  • Advice & Tools
    • Real Estate Tips
    • The Homeowner’s Advice Blog
    • What’s My Home Worth?
    • Loan Calculator
    • My Homefinder
  • About Me
    • My Profile
    • What My Clients Say
    • Contact Me
Home > buy a home > What Is A Starter Home For Millennials? Times Have Changed

What Is A Starter Home For Millennials? Times Have Changed

buying your first homeAccording to the National Association of Realtors (NAR), simply put, a starter home is a one or two-bedroom home (sometimes even a small, three bedroom). “Prices vary widely by market but starters on average cost $150,000 to $250,000 while trade-up and premium homes cost upwards of $300,000.”

TIP! If you have or are planning on having kids, you should look at homes that will have enough room for your family. Pay attention to safety too, especially if the home you are looking at has stairs or a swimming pool.

A recent CNBC article revealed that there are many factors that delayed older millennials (ages 25-35) from buying a home earlier in their lives. The aftereffects of the Great Recession teaming up with larger education costs forced many to either remain living in their parent’s homes or to rent.

What Is A Starter Home For Millennials?

With the economy continuing to improve, many millennials have been able to break into better-paying jobs which has helped spur down payment savings. As the dream of homeownership comes closer to reality, many millennials are saving for their forever homes.

TIP! When considering relocation, look no further than the Internet to find all the pertinent information about the town. Whether you’re moving to a large city or a small town, there is a good deal of valuable information that you can find on the internet.

According to the latest statistics from NAR, 30% of millennials bought homes for $300,000 or more this year (up from 14% in 2013). Diane millennials are buying homes than rentingSwonk, Chief Economist at Grant Thornton weighed in saying, “They rented for longer. Now they’re going to where they want to stay.”

More and more millennials are settling down, getting married, and starting families, which is a huge factor driving them to look for larger homes.

TIP! Houses that need some “tender loving care” are priced less. This will let you save some money in the beginning, and fix up the house as you see fit.

Increased competition in the starter home market has also been a driving force in waiting to afford their dream homes. Inventory in the starter home market is down 14.2% from last year, according to research from Trulia. This has driven prices up and has led to bidding wars.

What Is A Starter Home For Millennials?

Many “first-time buyers” who were originally looking for starter homes are realizing that for just a little bit more of an investment, they could afford trade-up or premium homes instead.

If you plan on purchasing your first home this year, let’s get together to determine how much house you can afford. You may be pleasantly surprised.

Have a Question?

Fields marked with an * are required

Recent Blog Posts

Rapid City homes under 200k

Debunking Mortgage Myths

Is It Really Cheaper To Buy A Home Than To Rent?

Rapid City Homes Under 250k

Homeownership Benefits Aren’t Just Financial

Check out our latest Twitter Post

Tweets by jim_whittaker

Jim Whittaker

Rapid City Real Estate Agent

Jim-Whittaker

Broker Associate

Welcome to Rapid City SD

Contact Info

RE/MAX Advantage
1331 W Omaha St Suite 200
Rapid City, SD 57701

Phone Numbers
Direct: 605-858-0775

Contact Me

Connect With Me

Directions from Rapid City Regional Airport – RAP

Find Me on Facebook

Facebook Pagelike Widget

Directions From South Dakota School Of Mines

Each RE/MAX® Office is Independently Owned and Operated. Equal Housing Opportunity. It is illegal to discriminate against any person because of race, color, religion, gender, handicap, familial status, or national origin.
engageRE is a trademark of real.leads Inc. All other trademarks are the property of their respective owners.
Site Powered by engageRE | © 2019 real.leads, inc. | Select images used with permission - © Can Stock Photo | WordPress Access | Agent Portal