In any given area, the definition can vary.  One buyer's idea of starter is another's perception of the last property.  People have different goals and that includes builders.  I understand they're people too.  

Price.   

Of course, prices in desirable areas are going up and up.   You're going to need $300K minimum to get a new home.  

Builder incentives?  Not necessary in this market.  

It's probably a combinations of both... but really more on the side of price... size does impact price at the end of the day. Of course, the cost of a starter home in Los Angeles, for example, is very different from one in Charlotte. One of our grandsons recently closed on a townhome in Denver... final cost was mid-$400,000's for a 1,400 sf home. That starter home for him would have been $100,000 less in Charlotte and he'd have gotten more for his money as well.

A plain vanilla tract home . . . our median home price is about 200k so anything under that . . .

there is no upside for builders building starter homes. So they aren't. Instead, semi custom and custom homes with HUGE RV garages . . . I about hyperventilated when a 1400 SF home appraised at 365k. The 3000 SF RV garage was the reason.

In my opinion it's a house in a nice / safe neighborhood that my clients can get that is at least $300 - $600 below what they are already paying in rent. I also today suggest to those clients that they never sell it and make it into an income property, if it's within their means! 

Which it should be if they followed my other suggestions...

It's simply your first home, whatever you can afford to buy;

in San Diego an average low would be a $400,000 condo or a $800,000 house.

A combination of both and location.  It also depends on who the buyer is - the type of financing, etc. So many buyers in my market are infused with money from parents. 

A starter home in the markets I serve is likely $1M and up. 

If a condo, we are looking at $600 and up. 

Peter,

It is difficult to say, and it depends on one's idea of a starter home.  As far as buildiers are concerned, they have their agendas also.  A

With building on raw land, one wants to capitalize on the most density to promote the return on investment. Lower cost homes is better stated as better, faster & cheaper homes and what is in demand for their neighborhoods as well as what the city will allow. First time buyer or starter home seeker may buy a condo or fixer-upper or a destination home as in needs to be driven to...The next 2-3 years will be profitable for all

Most of the new homes are above the price range for first time buyers.

Hello Peter Mohylsky. Broker Associate generally, the price and the location for the starter home.

Price mainly.

First time buyers tend to start in townhouses here, and it's always a price issue.  Of course they want single family homes, but few can afford them...even the small ones.

Price for sure, and location.  Builders are not building for first-time buyers.

I have to agree with Michael Jacobs first statement on his comment. Here a starter home for a young couple would probably be an apartment style condo or a townhouse. Our residential house prices for May average - $997,541 median - $899,900 for 2021, last year it was average - $724,767 median - $659,000 

Both - under $300k , < 2,000 sq ft

It is the price in my area. If you have to stay in a particular range, then that's the houses you get. I would say $275,000 for a 3BR 1BA 1 car garage.

Builders are just giddy that they have people to build for - they don't give a crap about incentives except given to buyers.

Size is a factor of location. That said, the minimum is $200,000 and can be a 2 or 3 bedroom bungalo of around 1,200 square feet down to a 575 square feet studio. The prices are on the rise.

What is considered a "Started home in the San Francisco Bay Area/ San Mateo County? It is a combination of price and size, but there is a third element called location, location location! However, the location depends on the type of home you are purchasing. A started home in San Mateo County area is two bedrooms, one bath or a small 3 bedrooms, one-bath single-family home located in a start-up neighborhood, a townhouse, or condominium complex. 

The location can differ from neighborhood to neighborhood, and, of course, the purchase price and downpayment play a significant role. Most started homes are located in modest areas. You can find a townhome or condo in a decent location, but you still have other costs like homeowner association and assessment fees, etc.  

for different buyers it's a different home.  It's not a term I use in marketing.

1st timers are almost getting priced out in our market (Phoenix). Not much out there under 400K and they fly off the shelf within hours or day upon going on market. 

It is price.  And anything under $400,000 is a starter home in our market.

Here in NH it can be a 1000-1600 sf home, most often under 300k these days. Up from 250k a short year or two ago. 

In our area a starter home is almost extinct , with the overbearing government regulation and permit fees, suppression of development and lack of inventory the price an entry level buyer has to pay is almost untouchable. I would define a rental as a starter home in our neck of the woods right now.

different strokes for different folks

New homes are for those who can afford to pay a premium, and those are not "starter homes" kind of buyers

Hard to say, and it depends on your definition, and perhaps who you ask. And no doubt it depends on the local market, type of home (condo, townhome, single family detached), etc.

In my area, $100,000 or so will get you a decent semi-detached 3 BR, 1 bath place to call your own.

I recently listed a 2 bedroom, 2.5 bath, 1,230 sq. ft. condo in a popular East Bay community with excellent schools. List price was $500,000. It quickly went under contract at a higher price. First time home buyer. It is very difficult to find housing at a lower price in that community.

I just checked out mls. In Fremont, Ca., where my office is located, there are currently five properties listed for less than $500,000. All are 1 bedroom, 1 bath condos.

Builder are selling new homes on a lottery basis to those who submit offers that qualify. No reason to give incentives to buyers or build lower priced housing.