Your Guide to Starter Homes in Today’s Housing Market: Do They Still Exist?
Key takeaways: A starter home is typically the most affordable home available in a local market, whether that’s a single-family home, condo, or townhouse. The median U.S. starter home costs $262,317 in 2026 and requires an estimated household income of about $80,000. While affordability challenges remain, buyers have more options than they did a few years ago, particularly in parts of the Midwest, Northeast, and South. If you’re thinking about buying your first place, a starter home can be your launchpad into homeownership. Typically the most affordable option for first-time buyers , starter homes are usually smaller with fewer frills or features and come with a more manageable price tag. Buying one still isn’t easy. Home prices have climbed significantly over the last decade, and affordability remains a hurdle in much of the country. But conditions have shifted somewhat in buyers’ favor recently—housing inventory is near its highest poin...