Why Starter Homes Are Disappearing
Ken McElroy Show
Ken McElroy
4.7 • 712 Ratings
🗓️ 6 February 2026
⏱️ 33 minutes
🧾️ Download transcript
Summary
Starter homes are vanishing, and it’s not because builders don’t want to help first-time buyers. Ken and Danille McElroy break down the real math behind shrinking home sizes, rising land costs, ADUs, build-to-rent communities, and what this shift means for buyers and investors right now.
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ABOUT KEN: Ken is the author of the bestselling books The ABC’s of Real Estate Investing, The Advanced Guide to Real Estate Investing, and The ABC’s of Property Management. With over two decades of experience in real estate investing, Ken McElroy is passionate about sharing the good life by helping real estate investors grow and prosper. This podcast is a place for Ken to discuss numerous topics connected to real estate investing, including finance, budgeting, the entrepreneur mindset, and creating passive income. Ken offers a wealth of personal experiences, practical advice, success stories, and even some informative setbacks, all presented here to educate and inspire. Whether you’re a new or seasoned investor, the information and resources on this channel will set you on a path where you and your investments can thrive.
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Transcript
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| 0:23.8 | Book now on emirates.com. |
| 0:25.8 | Welcome to the Ken McElroy show. |
| 0:27.6 | Today we're going to be talking about the starter home and why currently you are not seeing a lot of them. |
| 0:33.2 | Yeah, so let's jump into starter homes like, like, Neil and I were having a debate right before this. And I said, let's save this. Let's save this. Because here's the thing. Like I've been through cycles. Like this youngster over here, she really hasn't. Although I think she would say she has. I haven't really been through a. Like, I went through the 70s. |
| 0:55.2 | I went through the crashes. |
| 0:56.7 | I went through the reserves. |
| 0:57.5 | But let me tell you one thing. |
| 0:59.8 | I will tell you this. |
| 1:01.1 | The home my parents bought in the 60s was like 1,400 square feet, 1,500 square feet. |
| 1:08.5 | My mom, my dad added on. |
| 1:14.5 | But here's the point. You start to look at when prices go up, and I know it's all relative, right? But prices went up during that period of time. |
| 1:19.9 | And what happens? They respond by building smaller homes. We have a debate because Ken thinks they're |
| 1:27.1 | going to start bringing back more starter homes where I feel like starter homes are going to be tough because I don't know if the math mask. |
| 1:35.8 | And thankfully, I don't do this on feelings. |
| 1:39.3 | What I do at odd is history. |
| 1:41.4 | So that's the big difference. |
| 1:43.3 | So here's the thing. Like it factually has happened. |
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