Do ‘starter homes’ still exist in Saratoga?
It’s official: The median age of first-time home buyers is now 40 (yes, you read that right). Allison Bradley tells us what this means for Saratoga.
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Is it still a “starter home” if you’re firmly in middle age when you buy it?
The median age of first-time home buyers is now 40, nearly a decade older than 20 years ago, according to the National Association of Realtors. And these sobering new statistics are pronounced in Saratoga County for some very specific reasons.
“Homes for sale in Saratoga County tend to be older — and thus potentially in need of updating cosmetically and/or structurally — and more expensive,” says Allison Bradley of Four Seasons Sotheby’s Realty. “And there is relatively little new construction at true starter-home price points.”
Our area is seeing some major job growth (hello, GlobalFoundries) in technology, healthcare and other professional fields. And indeed, for residents not currently trying to put money together for a first-time home, the economic boon signified by more jobs and rising housing prices is seen as something very positive.
“It’s bringing more people into the area, which is great, but it’s also adding pressure to an already limited housing supply,” Bradley says. “This means that first-time buyers are often competing not only with each other, but with upsizing and downsizing buyers and cash-backed relocations.”
As a result, many buyers don’t reach the financial readiness to purchase until later in life. Dual incomes, reduced student debt, and career advancement have become prerequisites rather than advantages. In many parts of the county, the traditional “starter home” has effectively disappeared.
This shift can have long-term consequences for Saratoga and Saratoga County.
“Buying later in life shortens the amount of time homeowners have to build equity,” Bradley says. “This reduces turnover at the lower end of the market, making it even harder for the next wave of first-time buyers to purchase. Without more housing options across a wider range of price points, the age of first-time buyers in Saratoga County is likely to continue to rise.”
For more information visit sothebysrealty.com/fourseasons and contact Allison Bradly via text at 518-339-7313 or email at Allison.bradley@sothebysrealty.com.
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