Thursday, April 7, 2016

The Demise of the Starter Home

For a long time, the traditional path of home ownership in America involved buying a starter home, a small house that befits the smaller salaries and smaller family that most young adults have. As that household prospered and grew, it then set its sights on a much larger home, maybe moving from the city to the suburbs.

But that tradition no longer holds for many people. According to a new Bank of America poll of more than 1,000 adults 18 and older who would like to buy a home in the future, 75 percent of first-time buyers would rather bypass a starter home, even if they’d have to save more to do it. And 35 percent said they’d want to retire in that first home.

And they want to start out in the suburbs. The report found that 52 percent of first-time home buyers want a home in the suburbs. Only 26 percent said they wanted to live in the city and 22 percent said they wanted to live in a rural area.

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