Reply to Remember how people used to have a bachelor pad, then an apartment together, then a starter home....

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]In my experience people are just buying their dream homes right out of the gate. No renting, no fixer upper.[/quote]

The transaction costs are way too high. With a "starter" SFH in a good school district starting at $700K in the DC area, no way in hell I'm interested in paying nearly $100K in fees simply to trade-up. (In DC: $20K closing cost to buy, $50K in realtor fees to sell, another $15K in sellers' transfer tax, plus $20K closing costs to buy my "forever home").

-Millennial Married Renters in our mid-30s about to Buy Our First & Forever Home[/quote]

I agree with your larger point but you're leaving out a few pieces of the analysis.  You're paying the $20K in closing costs to buy your forever home whether you buy it first or second so you have to back that out of the equation.  The other thing you have to add in is the differential in interest expense you're carrying for those years you're living in your forever home (which presumably is more expensive than what a starter home would be) when you would otherwise be living in the starter home.[/quote]

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