Starter Home vs. Forever Home: Which Is Right for Your Needs?


Buying a house is a big decision, and it will probably be your life’s most significant financial commitment. The first thing that will cross your mind is whether it will be a starter home or a forever home. Will you buy something for a few years or a lifetime?

Size of your family

The first thing to consider when looking at what kind of house you should buy is the size of your family. If you are not planning to expand your family, then looking at small house plans is likely the best option. 

Starter homes

A starter home is the first home someone purchases in their life. These houses are usually smaller than the average one, with two or fewer bedrooms. Those looking to buy a starter home typically plan to stay in it for a minimum of two years. 

However, if your job or lifestyle allows, you should stay in it for closer to five years. Staying longer enables you to avoid capital gains taxes, and your house’s value will rise.


The most obvious benefit of a starter home is the price because these houses are much more affordable than more significant alternatives. Other monetary benefits include saving money on furniture and lower property taxes. 

Additionally, purchasing a starter home does not require as much commitment. Another thing to consider is smaller houses require less upkeep than more significant alternatives.


Starter homes are smaller, and as a result, they are not great options for families. Additionally, they are not always in the best shape, so you must make repairs. Finally, you might have trouble selling a starter home for a profit.

Forever homes

A forever home is a house you can picture yourself living in for a long time. You might not live in it for the rest of your life, but you will probably live in it for over a decade or longer. It should have everything you need, including a large kitchen, several bedrooms, a backyard, and a great location that can accommodate your growing family.

If you are planning on having more children, you should look for a forever home in a school district where you would like your children to attend school.


You can customize forever homes to fit your needs in ways you can’t get with a starter home. You can put down roots for your family, and you do not need to move for a long time. Additionally, you will have more space for activities. 


Forever homes cost more money than starter homes. Unfortunately, this excludes some people based on budget. Additionally, they require more upkeep, and they have a slower ROI.

Final thoughts

The decision to purchase a starter or forever home comes down to the stage of your life. If you want to put down roots, you should buy a forever home. However, most young people will find starter homes more practical and affordable while they prepare to move to their forever cities or start families.

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