Why it’s so hard to find starter homes in the U.S.

First-time homebuyers may struggle to find adequate starter homes when the 2025 buying season begins this spring.

The homes that once gave Americans a stepping stone into real estate are disappearing, according to experts.

While the exact definition of a starter home varies, they’re typically under 1,400 square feet. In 2023, just 9% of the new homes built in the United States were under that size, according to Census Bureau data. In 1982, it was more like 40% of new homes.