Younger buyers are skipping the starter home

On Behalf of | May 16, 2018 | residential real estate

Millennials in Florida and throughout the nation spent more time either renting or living with their parents while recovering from the Great Recession. Therefore, some have decided to skip the starter home phase and move right into their forever homes. One man’s first home purchase was a 2,700 square foot home that cost $360,000 in Long Island. As a general rule, a starter home costs about $150,000 on the low end and usually has one or two bedrooms.

Of course, there are no hard rules when it comes to defining a starter home, and market conditions may play a role in labeling a specific property. The man who bought the Long Island property and others have the ability to buy more expensive homes because they saved money not buying them at a younger age. When combined with their newfound workplace mobility, buying a home where they will stay for decades becomes a more realistic objective.

Some could feel that they have no choice but to skip a starter home as even those properties have become pricier in recent months. Overall, 30 percent of people in this age group bought homes that were priced at $300,000 and up. This increase in Millennial home ownership is mostly correlated with the increase in incomes that they have seen over the past few years.

Prior to purchasing a residential proprety, people may benefit from consulting with an attorney. This can be a good idea whether a person is buying his or her first home or have done so in the past. An attorney can review the applicable purchase and mortgage documents to make sure that they are in the client’s best interests.