Should Your First Home Be Your Forever Home Or A Starter Home?

Homeownership is part of the American dream and as the millennial generation comes of age, more and more young couples and young families are moving towards purchasing their first homes.  The old theory of starting with a small home and working into the home of your dreams is still very well and good, but what if you didn’t have to wait for your dream home.

This begs the question, should your first home be your forever home?


Affordability is probably one of the things that most first time homebuyers look at when entering into the housing market.  Of course, you should be in a position to afford the home you want with the means you have.  For many first time buyers, this means sacrificing some of the things they want in favor of what they need all in the name of affordability.

This is where starter homes come in.  Most starter homes will be in the affordable price range and give plenty of room to grow; however, growth can happen fast and unexpectedly which can put you and your family in a situation where an upgrade is needed far sooner than you anticipated.  With that in mind, a forever home may make more sense.


Buying a home is a huge commitment (usually 30 years worth of commitment for most folks), but the commitment of a starter home vs. a forever home can vary.  Your job, family, and overall future stability may depend on how committed you actually are to a home.

On the one hand, a starter home has a little less commitment.  In other words, unless you’re in a neighborhood where home prices and volatility are high, then you can probably sell that home for at least what you paid, maybe more in the event that you need to move.

On the other hand, a forever home may require a little more personal commitment emotionally and monetarily.  A forever home will likely cost more, may very well be the home of your dreams, and could make parting ways a little more difficult.  And while you may be able to sell a forever home for a bit of a profit, it may come at quite a cost to give up.


Homes and real estate are always an investment, and depending on what route you go will depend on exactly how that investment will play out in the future.

One thing to keep in mind about starter homes is they’re likely to find their way back onto the market as someone else’s starter home, a downsizing home, or a rental property.  For you, a starter home very well could become an investment in the form of rental income once you settle into your forever home.

The other side of that coin is property value.  A starter home’s market value isn’t likely to appreciate significantly over the course of your ownership and may only slightly outpace inflation.  A forever home, though, may hold its value and depending on its location actually increase in value significantly over time.  This could result in a significant profit if you choose to downsize or move at a market peak.

Get Started with Forever

No matter if you’re looking for a starter home or a forever home, your first home purchase will be the pride and joy of your family for years to come and will create lasting memories.  To get started towards your forever home, consider Tidewater Mortgage Services Inc..  You can get pre-qualified in as little as 24 hours with our online application and get you in your forever home soon!


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