There are now 233 cities with million-dollar starter homes vs. 85 in 2020
Starter homes top $1M in 233 cities: Zillow
There are now 233 cities with million-dollar starter homes vs. 85 in 2020
California has 113 cities where starter homes cost $1M or more
Nationally, the typical starter home is more reasonable at $192,514
In more than 230 U.S. cities, $1 million is only enough for a starter home, according to a new report.
The Zillow analysis found that the typical “starter home” was worth at least $1 million in 233 cities as of March. That’s a huge jump from five years ago, when just 85 cities had million-dollar starter homes.
“First-time buyers are facing a market where prices that once seemed unimaginable have become reality,” Kara Ng, senior economist at Zillow, said in a statement.
Nationally, the typical starter home is still relatively affordable at $192,514, but Zillow’s findings underscore just how dramatically prices have surged in many areas since the pandemic.
The real estate website defined starter homes as those in the lowest third of home values within a region.
Which states have the most $1 million starter homes?
California leads the nation with 113 cities where starter homes cost $1 million, but pricey real estate has spread beyond the Golden State.
Half of U.S. states have at least one city with $1 million starter homes, and the number of such cities has increased in several states over the past year, with New York now at 32, New Jersey at 20, Florida at 11 and Massachusetts at 11.
Many of those cities are clustered in the same region.
The New York City metro area, which includes parts of New Jersey and Pennsylvania, led all metros with 48 cities where a typical starter home costs $1 million or more, according to Zillow.
The San Francisco metro had the next-highest count at 43, followed by Los Angeles (34), San Jose, Calif. (16), Miami (8) and Seattle (8).
Homebuyers gaining negotiating power
With elevated mortgage rates, sky-high prices and rising inventory, homebuyers are starting to gain leverage in some markets.
Starter homes are still well below $1 million in most of the country, and the number of cities meeting that criteria has actually declined from 239 at the start of 2025, Zillow noted.
“With more homes hitting the market, listings lingering longer, and sellers cutting prices at record rates, buyers are starting to regain some negotiating power,” Ng said.
A recent Redfin report found that 44 percent of sellers gave concessions to buyers in the first quarter, up from 39 percent a year earlier. In cities like Seattle (71 percent) and Portland, Ore. (64 percent), the share of sellers offering concessions was much higher.
just 2.7 percent from a year before — the smallest annual increase since August.
Separate Redfin data through April 20 shows that the typical home-sale price has fallen in 11 major metros, with the biggest year-over-year declines in San Antonio (-3.7 percent), Oakland, California (-3.5 percent), and Jacksonville, Florida (-2.2 percent).
The average 30-year fixed mortgage rate dipped to 6.81% last week, down from 7.17 percent a year ago but still more than twice the 3 percent levels of the pandemic era, according to Freddie Mac.
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