72% of Homeowners Began With a Starter Home. Here's Why You Should, Too

The first home you buy doesn't have to be the home you live in for the rest of your life.

Buying a home is far from an easy thing to do. That's because it requires you to, among other things, bring a sizable down payment to the table. In today's real estate market, buying a home can be especially challenging since home values have risen substantially over the past year.

It's for this reason that many homeowners don't just go out and purchase large, updated properties. Instead, they dabble in homeownership by purchasing starter homes.

In a recent survey by Rocket Homes, 72% of non-homeowners expect their first home to be a starter home, not a forever home. Here's why you might consider going a similar route.

What is a starter home?

When we talk about starter homes, we're generally referring to properties that are smaller and less expensive than the average home on the market. To be clear, this doesn't mean that all starter homes are tiny or in poor shape. But generally, a starter home is one that you buy with the intention to move out of at some point in time (and usually within a pretty short time period -- say, five years).

The upside of buying a starter home

There are benefits to buying a starter home, especially in today's market. First, a starter home will generally be less expensive than your typical home within the same neighborhood. That means you might end up with a lower down payment and a lower mortgage.

Buying a starter home is also a good way to ease into homeownership for the first time. If you've always rented, it means you may not be used to the idea of having to perform home maintenance or pay for repairs as they pop up. With a smaller home, those costs and tasks could be less expensive and time-consuming, making that transition easier on you.

Another benefit of buying a starter home is getting to try out a neighborhood you're not sure is the right fit. Maybe you've lived in a city for years and don't know if the suburbs are right for you. If you buy a starter home, you can try out a new place without necessarily having to spend a fortune. And because starter homes tend to be easy to sell, if you find that you're not so thrilled with your new location, you could then unload that property and try out another place to live.

The downside of buying a starter home

Of course, there are drawbacks to buying a starter home. For one thing, you may have to settle for less square footage and fewer amenities and upgrades. Also, you may have a harder time feeling settled and comfortable within your home if there's the constant thought in the back of your mind that you'll one day be leaving it.

That said, it's more than possible for your starter home to become your forever home. It's not like you sign a contract promising to sell your home quickly.

Should you buy a starter home?

If you're eager to buy a home but can't afford a larger or more updated space, then buying a starter home could be a good decision. But it's also okay to hold out for your forever home if you have specific ideas about what that looks like. Think about how badly you want to own a home today versus in a couple of years down the line, and that should help guide your decision.