First-time home buyers are redefining the starter home

As the unprecedented low interest rates of the pandemic fade further into history, many American home buyers are shifting away from the long-held perception of the starter home as an entry point to homeownership. Today’s starter home is the new forever home for many people, transforming the home buying journey into an investment for the long term.

Rocket Mortgage® surveyed more than 1,000 people who plan to buy their first home within the next 2 years to learn about their priorities and what's changed since the last survey in 2022. We found that buyers expect to stay in their first home longer, demand efficient floor plans, and want to make fewer renovations than in years past.

Key takeaways:

• For 1 in 3 first-time home buyers (34%), a first home is a forever home.
• Fewer people who say they’re buying a starter home – 16% in 2025, compared to 29% in 2022 – are approaching the purchase as an investment that will allow them to trade up for a bigger home later.
• More than half (55%) expect to pay over $400,000 for their first home.
• Nearly 60% say they’d rather go over budget than buy a home needing renovations.

When house hunting, buyers look for homes that will serve them for years to come

More than half of those surveyed (52%) anticipate living in their first home for more than a decade. About 1 in 5 buyers (22%) plan to stay in their first home for 11 – 15 years, and 17% expect to stay for 2 decades or more, making these homes backdrops for years of life milestones. Less than a quarter (24%) plan to move in just 5 years – a decrease from 36% of first-time home buyers in 2022.

The permanence now attributed to first homes represents a dramatic shift for first-time buyers. A first home is no longer a steppingstone for a larger model down the line. Only 16% of the respondents who say they’re buying a starter home now are doing so to afford a bigger home later, compared to 29% in 2022.

Longer timelines may also affect what people are willing to spend, and today’s first-time home buyers are paying more for their first home than in recent years. While 30% of Americans say they expect to pay less than $300,000 for their first home, almost a quarter of respondents (24%) anticipate paying $800,000 or more.

First-time buyers want homes with elbow room

Since the starter home is now a long-term home for many people, 68% of first-time buyers want enough bedrooms and bathrooms to fit their needs. These buyers don’t want to squeeze too many people into the same space or to fight over who gets to use the bathroom first in the morning.

Over half (54%) are also prioritizing functional floor plans. They’re looking for ample storage (46%), plus a spacious, modern kitchen (56%) and a finished basement (30%).

Kitchen features

According to the first-time home buyers that Rocket Mortgage surveyed, an efficient layout (58%), ample counter space (50%), and smart storage solutions (50%) are the most important kitchen features in a new home.

Many buyers also don’t want kitchens that need a makeover. About 37% say new, high-quality appliances are a must, and 31% say they’re prioritizing updated cabinets, backsplashes, countertops, and floors.

Bedroom and bathroom features

First-time homebuyers in 2026 are prioritizing comfort and convenience in the primary bedroom and bathroom. More than half of first-time home buyers say a spacious layout (56%) and a walk-in closet (52%) are the most important bedroom features. In the bathroom, sufficient storage tops the priority list (59%), followed by a walk-in shower (43%).

Outdoor features

Many of today’s buyers view outdoor spaces as an extension of their living area. Almost 3 in 5 respondents (59%) say having a front porch is especially important to them. Over half (53%) want a large yard or patio, 52% are prioritizing a back deck, and 48% would love to have a garden in their first home.

Home office space is still key

Though many employees have been called back to the office, 1 in 5 home buyers (20%) say designated home office space is still a priority – a figure that hasn’t changed since the 2022 survey. Many buyers also want other upgrades that enhance the home experience or lower the cost of utility bills, like smart-home technology (24%) and sustainability features such as energy-efficient appliances and solar panels (20%).

First-time home buyers prioritize safety, an easy commute

First-time home buyers would rather have a sense of security than score a bargain in an up-and-coming neighborhood. Nearly half (47%) cite neighborhood safety as the most important factor when choosing where to live. In contrast, only 12% say affordability is their top priority.

Many buyers also want a good location and are willing to hold out for this. A long commute is a deal-breaker for 44% of respondents, and 33% would immediately reject a home in an undesirable location. About 1 in 3 (32%) say they would rule out a home with parking issues.

Buyers would break the budget for turnkey homes

More than half of first-time home buyers (55%) expect to pay more than $400,000 for their first home. At those price points, some people might not have the cash on hand to pay for any costly renovations – which means purchasing a fixer-upper as a starter home could be a financial headache.

Nearly 3 in 5 respondents (59%) say they’d be willing to go over budget for a home that doesn’t need any renovations. The remainder (41%) say they’re willing to buy a home that needs upgrades to stay under budget, showing a stronger buyer preference for turnkey homes.

Home inspection issues like water damage and roof problems are instant deal-breakers for 56% of first-time buyers, while 41% say they would reject any property sold as is.

First-time buyers are pooling resources with friends, family

While nearly 1 in 4 first-time buyers (24%) say they’re shopping for homes on their own, pooling resources remains a practical strategy for overcoming rising costs and accessing homes that might otherwise be out of reach.

Some buyers are teaming up with friends and family to purchase their first home. One in 10 respondents (11%) say they’re looking to buy with a friend or group of friends, while 4% plan to purchase with their parents and 3% with a sibling.

Still, the largest share (57%) of first-time home buyers is purchasing with a spouse or romantic partner.

The bottom line: The starter home is evolving into a forever home

Methodology

Rocket Mortgage surveyed 1,043 individuals, ages 18 and older, who described themselves as hoping to buy a first home in the next 2 years. The survey was conducted online between November 11 – 15, 2025. By generation, 23% of survey respondents identified as Gen Zers, 33% as millennials, 30% as Gen Xers, and 14% as baby boomers.

This article is for informational purposes only, and is not a substitute for professional advice from a medical provider, licensed attorney, financial advisor, or tax professional. Consumers should independently verify any service mentioned will meet their needs.