If You Build It, They Will Buy: New Construction Starter Homes May Be Answer for Millennials

By Judy Marchman

Aug. 14, 2025 at 1:37 PM CST

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A Millennial path to homeownership can be achieved

Rising rents are pushing more Millennials toward buying – and new construction starter homes are making it possible.

Why it matters

The return of the starter home opens the door for Millennials to build equity, stop paying ever-rising rents, and take the first step toward long-term financial stability.

The shift
  • For many, rent now matches or exceeds a mortgage payment.

  • Newly built homes offer modern design, tech features, and low maintenance.

  • Builders like D.R. Horton, Tri Pointe Homes, and Meritage Homes are targeting entry-level buyers with smaller, affordable homes starting in the mid $200,000s to low $300,000s.

Why now?
  • Millennials are the largest labor force but face student debt, high living costs, and tight housing competition.

  • Despite challenges, many are making the move to purchase.

  • New starter homes give them a realistic entry point to ownership.

Benefits of starter homes
  • Affordability: Lower prices and manageable mortgages.

  • Low upkeep: Warranties reduce surprise repair costs.

  • Modern features: Contemporary design, energy efficiency, and smart-home tech.

  • Quicker move-in: No need for costly renovations before living there.

The builders’ play
  • D.R. Horton’s “Express Homes” are aimed at first-time buyers with budget-friendly finishes and price point.

  • Other builders are expanding first-time buyer offerings to capture Millennial demand.

Bottom line

Millennials never gave up on homeownership. Now, with affordable new builds on the market, the dream is within reach – and builders are racing to meet them there.

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Judy Marchman

Judy Marchman is an Austin, Texas-based freelance writer and editor who, during her 20+-year career, has written on a diverse number of topics, from horses to lawyers to home building and design, including for NewHomeSource.com. Judy is the proud owner of a new construction home and has gained plenty of story inspiration from her home ownership experiences.