vs. “Family Home”(?)
“Starter home“: a relatively small, economical house or condominium that meets the requirements of young people buying their first home.
My association with “starter home” — and I’m sure many others’ — is a small house, usually two Bedrooms (or three 
very small ones), that may (or may not) be in rough condition.
Other popular adjectives: “cute,” “cozy,” and “adorable.”
Because of those attributes, it’s presumed that starter homes are temporary abodes, eventually traded in for bigger, nicer “family homes.”
Avoiding Clichés (and Negative Buyer Associations)
Perhaps those (mostly) negative connotations are why you don’t hear the term that much.
Of course, with the economy still shaky for many, there are plenty of homeowners whose temporary “starter home” turned out to be anything but.
At the other extreme, starter homes increasingly appeal to many “aging in place” Baby Boomers, who are now downsizing retirees.
Especially attractive: ramblers that offer one-level living.
P.S.: On the plus side . . . starter homes are also affordable!
See also, “Real Estate Clichés and How to Avoid Them“; “Real Estate Euphemisms — New & Improved“; “Rambler/Ranches: One-Level Living, Yes, But . . . “; and “An Ode to the ’50’s Rambler.”
