Starter home

The concept originated in the United States during the post-World War II era when entry-level home ownership was a preferred option for young families and regarded as part of the American Dream.

In the United States, as real-estate market conditions continue to inflate and rise in major and medium cities where growth is fast, many starter homes are only affordable or available in metropolitan area outer suburbs.

The American Dream of a new-build single-family home on a previously unused lot continues to move further out of urbanized areas to capture the lowest cost land.

Factors that influence developers include land prices, perceived value, market demand, city planning law, construction costs, and maintaining profit margins.

[1] For the buyer's end, changing financial requirements and mortgage interest rates as low as half a percentage point may affect large groups of income brackets to not be able to finance market-determined affordable housing in the long-term.

[7] Cities, whether suburban or the central core, have generally moved to a trend of master planned communities where large tracts of land are set aside for one complete build-out in order to maintain low costs to the developer and provide essential affordable and entry-level housing.

Median size of new single family home built
Contractor built
Owner built
People per household 1960–2021
Median people per household hit 2.51 in 2021
More than 37 million people live alone in a one-person household
Percent of households with one person
Number of one person households (thousands)
Percent of households by type
Married households
Non-family households
Other family households
New Multifamily Units Constructed
For Rent
  • Under 1,000 ft 2
  • 1,000 - 1,199 ft 2
  • 1,200 - 1,399 ft 2
  • 1,400 - 1,799 ft 2
  • 1,800+ ft 2
For Sale
  • Under 1,000 ft 2
  • 1,000 - 1,199 ft 2
  • 1,200 - 1,399 ft 2
  • 1,400 - 1,799 ft 2
  • 1,800+ ft 2