The starter home is fading fast as today’s buyers skip the first rung of the property ladder and go straight for a long-term play.

Fresh data from BMO shows Americans are entering the housing market later than ever, with first-time buyers now averaging around age 40.

That delay is reshaping what they want. Instead of smaller, short-term purchases, many are targeting homes that can handle everything at once, from raising a family to housing older relatives and even bringing in rental income. In short, they’re looking for a one-time buy of the home they’ll live in forever.

The numbers underscore the shift. About 65% of would-be buyers expect their first home to be their only one, signaling a move away from the traditional trade-up model.

At the same time, multigenerational living is becoming a driving force, with two-thirds of millennial homeowners saying it was important to find a property with room for parents or grandparents. And with costs climbing, many are looking to make their homes work harder financially, as a majority of Gen Z and millennial owners plan to generate income from their properties.

The shift also reflects growing frustration with affordability. More than half of non-homeowners now believe buying a home is out of reach, highlighting how higher costs are changing expectations around ownership.

That later entry point is rewriting the typical homebuying journey. Buyers are no longer purchasing small properties early in their careers and upgrading over time. Instead, many are arriving with established lives, often already juggling family responsibilities.

“In the more traditional starter home model, young homebuyers purchased a smaller home as young professionals, often before starting a family,” Paul Dilda, Head of US Consumer Strategy at BMO, told The Post.

“Our data show that today, the average non-homeowner estimates they will be 40 by the time they get the keys to their first home now — while the average age in the early ’90s was 28 — and many renters are house hunting with children already in tow. Add in the fact that many have sandwich generation caregiving responsibilities, and it makes sense that many are looking for a long-term nest across life stages rather than a shorter-term purchase,” Dilda added.

Still, the shift may not be permanent. Economic pressures appear to be driving much of the change, suggesting buyer behavior could evolve again if conditions improve.

“The move away from the starter home may not be permanent. Our data suggests it’s a response to the economic realities of today — a high cost of living and multiple financial responsibilities. As the economy shifts, so too does the market and the desires of homebuyers,” Dilda said.

“But one thing remains constant, whether you’re buying a first property to get on the housing ladder or you have your eyes set on a dream house for the next three decades, a solid financial plan is a non-negotiable. The most important thing is to identify a goal and build a budget with a financial partner that can help make your homeownership dreams into reality.”