Why Some Home Buyers are Skipping the ‘Starter Home’
For years, the conventional wisdom around buying a home went something like this: start small, live there for a few years, build some equity, and then move up when life (and income) allows.
But the market — and buyers themselves — have changed.
Lately, I’ve been seeing more couples question whether the traditional 3–5 year “starter home” still makes sense. Instead, some are choosing to buy a home they can stay in long term — even if that means stretching thoughtfully at the outset.
This isn’t the right strategy for everyone. But it is one worth understanding.
Buyers Are Older — and Thinking Longer Term
According to the National Association of Realtors, the average first-time homebuyer is now around 40 years old — the highest on record. Many buyers are more established in their careers, clearer about where they want to live, and less interested in moving every few years.
At the same time, homeowners are staying put longer. On average, buyers now expect to remain in their homes for roughly 11 to 15 years, a significant shift from past decades.
When people plan to stay that long, the idea of buying “just for now” naturally starts to lose appeal.
The Cost of Buying Twice
One of the biggest reasons buyers are rethinking the starter-home approach is cost — not just purchase price, but total investment over time.
Buying a smaller home or one that needs significant updates often means:
Putting money into renovations that may not fully translate to resale value
Paying transaction costs twice (closing costs, moving expenses, commissions)
Re-entering the market later at potentially higher prices
In contrast, buying a long-term home sooner allows buyers to:
Start building equity right away
Benefit from appreciation over a longer holding period
Make improvements with the intention of enjoying them, not just recouping costs
Why This Can Make Sense — With the Right Foundation
This strategy tends to work best for buyers who:
Have stable income with reasonable expectations of growth
Are confident in the area and lifestyle they’re choosing
Plan to stay put for a decade or more
Are comfortable with a slightly tighter budget early on, knowing it may ease over time
One important point often overlooked: interest rates can change, but purchase price is locked in. Rates can be refinanced if and when conditions improve. The price you pay for the home cannot.
That doesn’t mean buyers should overextend themselves — preparation and realistic budgeting still matter immensely — but it does mean that focusing solely on today’s rate can miss the bigger picture.
A Local Perspective
Here in the west Denver suburbs — including areas like Applewood — demand remains strong for well-located, well-maintained homes. Buyers who choose thoughtfully and plan for the long term are often positioning themselves more strategically than those who expect to move again in a few short years.
I recently worked with clients who chose to buy their long-term home instead of something temporary, knowing they wanted to settle in, grow into the space, and build equity from day one. It wasn’t the easiest choice on paper — but it was the right one for their goals.
This Isn’t for Everyone — and That Matters
It’s important to say this clearly: skipping the starter home is not a universal solution.
Some buyers need flexibility. Some are early in their careers. Some value lower monthly payments over long-term positioning. All of those choices are valid.
The goal isn’t to push one strategy — it’s to understand the tradeoffs and choose intentionally.
The Bottom Line
If you’re planning to stay in a home for 10–15 years, it may be worth asking a different set of questions:
Does buying once instead of twice make sense for my timeline?
Would I rather invest in a home I can grow into?
How does today’s price compare to where this market may be in five years?
These aren’t questions with one-size-fits-all answers — but they are conversations worth having.
If you’re navigating a purchase and want to talk through what makes the most sense for your situation, I’m always happy to help you think it through calmly and clearly.