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Starter Homes Now Cost $1 Million in 242 US Cities: Zillow
Zillow said the number has tripled since 2020 as housing shortages and strong demand pushed starter-home prices higher in many markets.
On Monday, Zillow reported that a record 242 U.S. cities now have starter homes valued at $1 million or more, marking a significant reset in entry-level home affordability since the pandemic began.
The number of cities with seven-figure entry-level homes has nearly tripled since 2020, rising from 80 before the pandemic, as a persistent housing shortage collided with intense demand.
California leads with 105 such cities, while New York and New Jersey are the fastest-growing states, adding 15 cities combined in the past year; New York reached 41, New Jersey 26.
Zillow senior economist Kara Ng said Sun Belt markets have responded with new supply and seen price growth moderate, whereas the Northeast lacks this relief, fueling million-dollar starter homes where shortages persist.
Despite these seven-figure outliers, the typical U.S. starter home remains valued at under $199,000, though the median home costs nearly $418,000, requiring households to earn nearly $117,000 annually.