A starter home is just as it sounds, a young couple’s first home that is relatively small and economical. All around the United States, people buying a house for the first time usually have been saving up to put a decent down payment on a home they can afford. This can be anywhere from 10-19% of the cost of their house and is all dependent on where you live and what the cost of living and real estate is in your area.
Everyone understands that New York is a costly city to live in, which is why so many rent instead of buying because they don’t have the means for a down payment. But the exciting part about all of this is that New Yorkers are now altogether skipping the starter home aspect of purchasing real estate. Instead, they save up money over time and then buy their forever home.
One of the most significant aspects of New Yorkers preceding starter homes is the fact that once they finally have the means to purchase the home of their dreams, studies are finding they stay put much longer. Most first time home buyers don’t put the full suggested amount of money down on their first house because of the considerable expense, and it is cheaper to put less down when you are first purchasing.
Touching back on some of the studies being done on real estate within New York, as previously mentioned, most New Yorkers are living in their first-time homes a lot longer than the national average. Younger generations are beginning to make big life decisions once they are older and have the means to do so. This is very true when it comes to purchasing their first house. In doing so, this means most New Yorkers stay in their homes for an average of 18 years and 69 percent of the 70 percent who still live in their first-time homes, have no plans on selling in the near future.
Even though you describe these homes as first-time homes, compared to other areas of the US, it is more likely deemed their second home. New Yorkers are skipping the step of owning a smaller house and moving two different times in a small window of years by waiting and saving longer. These studies done by StreetEasy partnering with YouGov have been able to figure out what the past and present of NY homeownership among young Americans. This will help real estate professionals shape the way they do business in the future.