D.C. starter homes turning into forever homes

New buyers aren't the only ones frustrated by this market. Existing homeowners stuck in close quarters are feeling the squeeze, too.

Why it matters: Your starter home could become your forever home.

What they're saying: "We have been stuck in our starter home since 2010 … and our family has doubled in size," Cameron Hurley tells us.

• She and her husband own a two-bed two-bath condo in the Atlas District — a big upgrade from their Adams Morgan studio.

They've dreamed of a larger space, but would have to leave the neighborhood to afford it.

• Instead, they've renovated over the years to make the space work for them and their family of four.
• The den became a bedroom, a wonky storage space became a half bath, and the living room is an everything room.

The big picture: First-time homebuyers are taking up a growing share of home purchases while current owners stay put.

• Half of potential sellers are waiting for mortgage rates to come down before they list, per Realtor.com .
• Roughly one-third of potential sellers have been thinking of moving for multiple years.

Shamika Lynch of Maximizing Tiny Interiors specializes in small-space design. There's been a noticeable increase in clients opting to renovate the space they have instead of upgrading to a larger home, she says.

• To maximize minimal square footage, clients are packing multiple functions in each space. For example, one client is adding a bathroom to their existing layout to complete a guest suite (that may double as a nursery one day), Lynch says.

The intrigue: U.S. homes are getting smaller , as households shrink , people have kids later in life and housing costs soar, Axios' April Rubin reports.