The average age of a homeowner is 44, despite Gen Z homeownership rising in 2025. However, for buyers its not finding a home that is a challenge.
According to recent research from Realtor, there are 300,000 fewer starter homes than before the pandemic. To address this, builders in 2026 are building on smaller lots at a quicker pace than the year before.
The reality is the cost to purchase a starter home has dramatically increased. The average price of a starter home has risen from $256,000 in 2019 to $344,000 today. Consumer buying power and salaries have not followed suit. The average income needed to purchase is $78,000, up from $43,000 in 2019, while over the same period median household income rose only 28.3% at an estimated $69,000 to $88,100.
“The barrier for today’s starter home buyer isn’t finding a home, it’s qualifying for one,” said Senior Economist “With mortgage rates still in the mid-6% range and the income needed to purchase a typical starter home up more than 80% since 2019, many would-be buyers are sitting on the sidelines even as listings accumulate.
