Why Starter Homes May Not Be the Best Investment Strategy Anymore The starter home market has long been a staple of American real estate investing, providing an affordable entry point for first time buyers and a steady stream of rental income for investors.
However, over the past decade, starter home prices have increased significantly, making it increasingly difficult for buyers to get into the market and for investors to reap the returns they once did.
Understanding the Shift in Starter Home Market Trends The median sales price for new single family homes in the United States has risen by 45% over the past ten years, from around $230,000 to roughly $330,000.