What buyers can afford today
Whether a home is affordable depends on both the purchase price and the monthly payment. Your income, existing debt, down payments, and current interest rates all work together to determine what fits comfortably in your budget.
This is where HomeLight’s HomeLight Calculator can be helpful. By entering a few details, you can see how different price points can translate into real monthly costs before you start shopping for your first home. Use the switch at the top to calculate affordability based on income or monthly payment.
To refine your estimates, click the “Advanced Options” drop-down link. The calculator expands so you can adjust and exclude costs depending on your situation.
Remark: The actual terms and affordability of your home loan depend on your credit score, debt-to-income ratio and your lender’s criteria. For a more personalized estimate, contact a qualified mortgage specialist or financial advisor.
Is a starter home still worth it?
For many buyers today, the answer is still yes, but achieving this requires more considerations than in the past. You may have to accept a smaller space, a longer commute, or a home that will require updating over time. Some buyers also plan to stay longer than originally expected, especially if a move becomes less affordable.
To achieve this, more patience is also required. In a recent report on consumer housing trends, Zillow found that the the average age of a tenant has risen to 42 years. About half of all tenants (46%) are younger than 40 years old.
But ultimately, homeownership is a prize worth fighting for. A starter home can help you build equity, lock in a monthly payment and no longer have to rely on rising rents. Even if the house isn’t perfect, it can get you closer to your long-term ownership goals.
Tips for buying a starter home in today’s market
Buying a starter home in today’s housing market can be a challenge, so preparation is important. Getting pre-approved early helps you understand your limits and shows sellers you’re serious. Staying flexible about cosmetic details and location can also open the door to more affordable options.
It’s also smart to work with a local broker who understands the entry-level inventory in your area. An expert real estate agent can help you spot genuine starter homes, spot price red flags, and act quickly when the right opportunity presents itself.
If you’re not sure where to start, HomeLight’s free Agent Match platform can connect you with a top-rated local agent to meet your needs. We analyze over 27 million transactions and thousands of reviews to determine which broker is best for you based on your needs.
With the right guidance and a realistic plan, you can approach the starter home market with more confidence and a clearer picture of what is possible for you.
For more information, Visit HomeLight’s Homebuyer Resource Center. There you can find answers to all your questions about buying a house.
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