A record 242 US cities now have starter homes that cost $1M

3 hours ago

The number of U.S. cities where a typical starter home costs $1 million or more has nearly tripled since February 2020, from 80 to a record 242 in 2026.
California remains the state with the most million-dollar starter home cities (105), but New York and New Jersey are experiencing the fastest growth.
The pandemic housing boom, driven by low mortgage rates and a housing shortage, has durably increased home values, resetting affordability for first-time buyers.
Affordability is slowly improving for buyers, with the break-even point for buying versus renting decreasing from over eight years in late 2023 to about six years in 2026.
The Northeast, particularly New York and New Jersey, has seen significant growth due to persistent housing shortages and lagging new construction, with six of the top 10 hottest markets located there.
Before 2020, million-dollar starter homes were concentrated in coastal states; now, 26 states have at least one such city, including interior states like Texas, Wyoming, and Illinois.
The New York City metro area leads all metro areas with 63 cities featuring million-dollar starter homes, followed by San Francisco (37), Los Angeles (33), San Jose (13), Miami (8), and Seattle (8).
Zillow offers tools like BuyAbility and down payment assistance modules to help buyers navigate the market, and CreditClimb for renters to build credit through on-time rent payments.

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