Death of the First House

After several irritations According to Zillow research in Portland, Oregon’s most expensive market, Gaby Colón and Daniel Quebral ditched their traditional home plans and embraced the open road, buying a 315-square-foot mobile home.

“Rents are crazy right now, and housing prices are skyrocketing,” Colón said. “We just wanted to get out of the rat race, and we want some peace.”

Colón, 27, and Quebral, 33, are part of a surprisingly normal, educated, working-class American population struggling to afford a home. Nishu Sood, head of real estate research firm John Burns Research and Consulting, says that in the decade since 2015, inflation has risen 37 percent, incomes have risen 45 percent, and the cost of buying a home has risen 115 percent (by comparison, rents have risen 43 percent). The national median price of a starter home was $292,950 in 2024, up from $190,559 in 2019, according to realtor.com.

With housing costs outpacing wages, starter homes — defined as homes purchased in the bottom third of the market — are on the rise. According to the National Association of Realtors, the average age of first-time buyers has reached the age of 40, indicating that one of the most popular trends in adulthood is being put on hold.

Analysts say the problem is a perfect storm: a surge in housing demand during and after the pandemic, the entry of the millennial generation into the housing market, and rising interest rates.

“When inventory levels fall, the price drop is less because that’s the price most people can afford,” explains Hannah Jones, realtor.com economist. “When interest rates go up, more consumers are pushed into the bottom line.”

These rising prices are also forcing families in starter homes to delay moving up to larger properties, further reducing the number of entry-level options.

“It’s surprising that $300,000 is the most stressed part of the market,” says Jones, noting that in 2016, about 61 percent of active listings were valued at $300,000 or less. Currently, from January to April 2026, $300,000 homes only make up 31 percent of the market.

Limited space policies, Jones says, can provide relief by, say, encouraging new construction on smaller lots, which can increase supply and offer more options to buyers. But digging a way out of this problem is a long-term process. For dedicated buyers now, the market is forcing creative options, with some opting for smaller homes, choosing properties in affordable markets, or connecting with friends or family to buy multi-unit homes.

“Buyers are still buying homes.” “Obviously, they’re moving slower than during the pandemic or before the pandemic, but they’re finding ways to make it happen,” Jones said. “For the most part, people see home ownership as a very important part of the American dream.”

This article is part of Their futurecollaboration between editors a THE WIRE and Architectural Digest helping you understand what “home” will look like tomorrow and beyond.

The Corporate Landlord Experience

Although sales prices have risen dramatically, leasing remains a more affordable option across the country. This affordability leads some consumers to sign mortgages instead, a solution, often very frustrating, that prevents them from accumulating wealth as their parents and grandparents did.

“It seems like we’re supposed to have money to buy a house and build, and retire, but that’s not the case for us,” says Mike Odom, 45.