Sep 6, 2023
A starter home can also vary greatly depending on the local market, says Farah Sutton, a real estate agent in Phoenix, Arizona. For example, the Arizona market has changed significantly over the past three years, and that means the starter home market is very competitive, as first-time homebuyers must compete with individual and institutional investors. “In addition to this competition for starter homes, buyers are also grappling with high interest rates,” she says.
Sutton adds that buyers sometimes feel frustrated when they realize their first home might not be picture-perfect right away. “What makes it challenging when purchasing a starter home is managing expectations,” she says. “Nowadays, starter homes frequently require renovations due to the age of the home and deferred maintenance.”