Should price, then, be the defining element of a starter home? Again, that approach fails when $300,000 seems to be the low end, the foot-in-the-door price, in much of Lincoln Park. In one current Lincoln Park project, $390,000 buys you a moderately sized two-bedroom condo. Perhaps, then, the whole idea of new homes for first-time buyers is an oxymoron. Maybe resales are the true starter homes. But plenty of first-time buyers want new construction and, believe it or not, find homes that meet their budgets.

The point is, one person’s starter home is another’s dream house. A couple that has been renting in Lakeview for eight years and is determined to stay in the neighborhood might realistically aim for a price of $250,000 to purchase a new condo, hoping to step up later to a larger unit or a single-family. In other neighborhoods, that scenario might seem insane, especially when you can buy a brand new single-family home on the South Side with a garage and yard for less money.

The most important thing in finding the starter home that’s right for you is to shop extensively. Shop long before you intend to buy and check out projects that are both a little above and below your price range. Having a strong sense of the market, of what $120,000 will buy you, what you can get for $160,000 and how $200,000 translates into a new home right now in the locations that interest you, is vital. It’s equally important that you have a solid sense of what you can afford, both in terms of a down payment and monthly mortgage payments before you begin shopping.

If you think you can’t afford a home, it’s possible that you only need to change your definition to be in the market. Brand new detached single-family houses are out of reach for many of us, and in prime north lakefront neighborhoods, they’re difficult to find. But your first home doesn’t have to be the ideal one: it can allow you to build equity until you decide to trade up for something more.

Lofts have become the starter home of choice for thousands of city dwellers during the past few years. They tend to be centrally located and, although some are quite pricey, they generally sit at the "affordable" end of the spectrum. Two current loft projects are prime examples.

Renaissance Place, 5200 S. Ellis, is a seven-acre development on the site of the former Chicago Osteopathic Medical Center in Hyde Park. The 225 loft condominiums in this project by Kenard Corporation and Concord Development includes one-bedroom lofts priced from $101,500 to $133,600, and two-bedrooms from $150,500 to $233,300. All lofts in phase I have gas fireplaces with ceramic tile surrounds, track lighting and new double thermopane windows. All units have a living room, dining area and kitchen, and range from 725 to 1,100 square feet.

The starting price of around $100,000 might not seem low for what is, after all, recycled commercial space, but a quick perusal of current loft projects will show that it’s well below average cost, especially when you consider that a parking space is included. And don’t let the loft label fool you. About the only part of this project, of virtually any loft project these days, being recycled is the brick shell. Everything, from windows and roof to electrical and plumbing systems is entirely new.

If condominiums do not appeal to you, townhouses are a consideration. However, they are not the bargain they used to be. A new townhouse ordinance has made it harder for developers to cram large number of units onto small parcels of land. This has resulted in fewer townhome developments and higher prices for the ones that do hit the market. The townhomes at Renaissance Place seem to be at the low end of the market, with starting prices of about $250,000. Smith Park Commons, 2455 W. Ohio, has townhomes priced from $259,900. They include two or three bedrooms, fireplaces, private roof decks, granite kitchens and marble master baths in a fairly urban location. Two-bedroom, 2.5-bath townhomes are priced from about $258,900 to $289,900 at Verona Square, 1441 W. Taylor, southwest of the Loop.

Single-family homes take up more space than either townhomes or condos and are by their nature less efficient from a builder’s perspective. In most neighborhoods, then, it makes sense for builders to stack these units as close to the high end of the spectrum as they can. Deals do exist, however.

The Chatham Club is a single-family home project in a stable, quiet South Side neighborhood in the vicinity of Chatham (not in it, as the name implies). The two-story detached units by Bejco Development are priced from $173,900 to $262,900 in phase III. They have two to four bedrooms, 1.5 to 2.5 baths, two-car garages and 1,429 to 2,314 square feet. It’s fair to say that no comparable North Side deal exists, which brings us to the most important factor not only in starter homes but in all real estate - location.

New construction in popular well established neighborhoods is obviously more expensive than new houses in "emerging" neighborhoods. And the closer to the lake you are, the higher the prices get. The Northwest Side offers much lower prices than neighborhoods to the east, but until recently not much has been available there. Now, a fair number of conversions and even some new construction projects are popping up all over the Northwest Side.

A conversion at 3707 W. Cullom, in Old Irving Park, is listed with Koenig & Strey and has prices starting at $99,000 for two-bedroom condos with hardwood floors and all-new GE appliances, including washer and dryer. The Chatham Club, which was the fastest selling single-family home development in Chicago according to one housing analyst, is far enough from downtown to have lower prices. Much of the South Side, like the Northwest Side, offers starter prices and is seeing more construction than ever before. Within the central area, projects in "new" corridors, i.e. formerly industrial and still a little under-populated, tend to have lower prices. This is true of the Clinton Complex, which is being marketed as part of the "South Branch District" - a neighborhood that doesn’t exist.