One of the things I love about writing this column is that while I’m doing my research, I frequently stumble on things I never heard of and likely never would in my day-to-day life. This month I learned a new word, “brat.” Brat, of course, is not a new word; it generally refers to someone spoiled or childish. However, this version of it started with an English singer who I had never heard of either.
So, what does this have to do with real estate? If you don’t know, just ask any real estate professional who has worked with fussy buyers who have champagne taste on a beer budget. Dare I say, “brats.”
Part of the reason these buyers feel entitled is because the cost of starter homes has soared in many areas of the country to $1 million. There are more than 200 U.S. cities where buyers will find a price tag of $1 million or more on the typical starter home. The housing shortage that worsened over the pandemic has helped drive the cost of all homes to new heights.
Starter homes are generally defined as being those properties in the lowest third of home values in a given region. Currently, 237 cities in the country fall into this category with starter homes starting at $1 million. This is the most ever; five years ago, there were only 84 such cities.
Nationwide, the typical starter home is worth approximately $196,611, which is comfortably affordable for a median-income home. However, starter home values have grown 54.1% over the past five years, even more than the typical U.S. home in the same time frame, which shows 49.1% growth. This increase in value has delayed the first home purchase for many with the median age of a first-time buyer last year at 35, a year older than in 2019.
This research is from Zillow, which also gave us the names of the top five states with cities where you can find all these $1 million stater homes. The top of the list is California with 117 such cities; New York has 31 cities; New Jersey has 21 cities; and Florida and Massachusetts both have 11 cities each in this category.
Even though our property values are starting to level off, Manatee County, according to the June statistics, had single-family homes averaging $736,322. We’re definitely getting into brat territory. In general, homebuyers could have some good news after years of too much competition with an emerging balanced market. Interest rates for the first time are starting to get below 7% and builders are busy all over, adding to available properties.
If you just want to enjoy living your life and you don’t care what anyone else thinks, you’re a brat. If you’re carefree, messy and bold, you’re a brat. If you know what “brat coded” means, you are so a brat. And if you don’t get the “brat” thing, you are so out of it. Let’s hope our buyers aren’t brats and understand the value of our area where there are still a lot of carefree people living their lives on the beach who never heard of “brat.”
