Forget the starter home. Today’s first-time buyers want a place they’ll live in for a long time — possibly even into retirement. And this ideal home is most likely in the suburbs.
That’s according to a new Bank of America poll of more than 1,000 adults 18 and older who would like to buy a home in the future. “Folks are waiting to buy their first home until later in life,” said Kathy Cummings, consumer education and consulting executive for Bank of America. And by that point, they’re probably better able to anticipate their future needs, which may be a home in which they can raise their families — places with ample square footage, backyards and sought-after school districts.
The report found 75% of first-time buyers would rather bypass a starter home, even if they’d have to save more to do it. And 35% said they’d want to retire in this home.
Also, despite many reports about the lure of city life over recent years, especially among millennials, the report found that 52% of first-time home buyers want a home in the suburbs. Only 26% said they wanted to live in the city and 22% said they wanted to live in a rural area. A full 75% of first-time home buyers want a single-family home.