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

Rhea-AI Summary

Zillow (NASDAQ:Z) reports that a record 242 US cities now have typical starter homes valued at $1 million or more, up from 80 in February 2020 and 226 in April 2025. A starter home is defined as a home in the lowest third of values locally.

According to Zillow, the typical US starter home is worth $198,649, up 1.7% year over year. California leads with 105 such cities, while New York and New Jersey show the fastest growth, reaching 41 and 26 cities respectively.

News Market Reaction – ZG

+1.43%

+1.43% Session close to close

In the Jun 15 session, ZG gained 1.43%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement highlights how entry-level homeownership has become more expensive, with 242 US ci...

Analysis

This announcement highlights how entry-level homeownership has become more expensive, with 242 US cities now showing starter homes at or above $1 million and a typical nationwide starter home value of $198,649. It builds on Zillow’s recent stream of housing analytics, including rent-versus-buy studies and market reports. Investors may watch how these affordability trends intersect with usage of Zillow tools like BuyAbility and rental offerings, as well as ongoing regional supply and inventory shifts.

Key Figures

US cities with $1M+ starters: 242 cities US cities with $1M+ starters: 226 cities US cities with $1M+ starters: 80 cities +5 more

8 metrics

US cities with $1M+ starters 242 cities April 2026, Zillow analysis

US cities with $1M+ starters 226 cities April 2025, Zillow analysis

US cities with $1M+ starters 80 cities February 2020, pre-pandemic

Typical US starter home value $198,649 Nationwide, latest reading

Starter home value change 1.7% Year-over-year increase nationwide

NYC metro $1M+ starter cities 63 cities Largest count among US metro areas

San Francisco metro $1M+ starter cities 37 cities Second-highest metro count

Los Angeles metro $1M+ starter cities 33 cities Third-highest metro count

Historical Context

5 past events · Latest: Jun 11 (Positive)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Jun 11	AI rentals efficiency	Positive	-3.1%	AI Assist users show higher rental application and lease-conversion rates.
Jun 04	May housing report	Positive	+1.1%	Update on home values, mortgage payments, inventory and rental trends.
Jun 04	Rent vs. buy study	Positive	+1.1%	Analysis of break-even timelines between renting and buying across metros.
May 27	Renter concessions data	Positive	+0.4%	High share of rental listings offering concessions amid elevated vacancy.
May 21	Sales rebound trends	Positive	+0.9%	Spring housing rebound strongest where inventory has recovered above norms.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Recent housing and rental data releases have generally been followed by modest positive price reactions, with one notable selloff after an AI-focused rental efficiency update.

Recent Company History

Over the past month, Zillow has issued a series of housing-market and product updates. These include reports on renter concessions, regional inventory-driven sales rebounds, and a rent-versus-buy break-even analysis where buyers typically catch up after about six years. A recent AI Assist rental-leasing study showed higher application and lease rates but coincided with a negative price move. Overall, housing data pieces have mostly seen small positive reactions, framing today’s affordability-focused report within an ongoing stream of market analytics.

Key Terms

down payment assistance

1 terms

down payment assistance financial

"Home listings on Zillow also include a down payment assistance module..."

Down payment assistance is financial help that lets a homebuyer cover part or all of the upfront cash normally required to buy a house, provided as a grant, low‑interest loan, or gift from government programs, nonprofits, employers, or lenders. For investors, these programs act like a stepping stool that can increase the pool of qualifying buyers and boost home sales and mortgage volume, while also influencing credit risk and resale patterns depending on program rules and borrower protections.

AI-generated analysis. How Rhea-AI works. Not financial advice.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

The count of cities with $1 million starter homes has nearly tripled since 2020, an enduring sign of how the pandemic housing boom reset affordability for first-time buyers

• The number of cities where a typical starter home is worth $1 million or more has nearly tripled since before the pandemic, rising from 80 in February 2020 to a record 242 today.
• California still has the most cities with million-dollar starter homes, but New York and New Jersey are seeing the fastest growth.
• Nationwide, the typical starter home is worth $198,649, up 1.7% from a year ago.

SEATTLE, June 15, 2026 /PRNewswire/ -- The bar for entry-level homeownership has never been higher. While the typical starter home nationwide is worth $198,649, a record 242 cities now have starter homes valued at $1 million or more, according to a new Zillow® analysis.

A typical "starter home" is defined for this analysis as a home in the lowest third of home values in a given region. The count of cities with million-dollar starter homes has grown from 226 cities a year ago, even as affordability pressures have begun to ease in parts of the country.

The effects of the pandemic housing boom have proven durable. A housing shortage, a decade in the making, ran headlong into intense demand amid historic lows in mortgage rates, driving up home values at a record pace. While plenty of markets are still feeling the pinch of this price reset, conditions are slowly becoming friendlier for buyers: The typical home buyer now breaks even relative to renting after roughly six years, down from more than eight years in late 2023.

"The pandemic reset the cost of buying a home, spreading million-dollar starter homes from a handful of coastal states to more than two dozen states across the country," said Kara Ng, senior economist at Zillow. "But while it may feel like a market of beer tastes at champagne budgets, those million-dollar starter homes are still the exception. More inventory, slower price growth and a narrowing rent-versus-buy gap mean buyers who are financially prepared are generally in better shape than in recent years."

New York and New Jersey are the fastest-growing states on the list, adding 15 cities combined in the past year. New York's total has reached 41 — up from just 12 before the pandemic — while New Jersey's has grown to 26, up from only one. The pattern mirrors what Zillow found in its 2026 hottest markets analysis: Six of the 10 most competitive housing markets in the country are in the Northeast, where new construction has lagged and inventory deficits run deep.

"Million-dollar starter homes are popping up in more Northeast cities because the housing shortage there hasn't been solved," said Ng. "Sun Belt markets have responded with new supply and seen price growth moderate as a result. The Northeast hasn't had that relief. Eliminating barriers to building like restrictive zoning is the most direct path to improvement, which is something Zillow is actively advocating for across the country."

California still leads overall with 105 cities, and 26 states now have at least one city with million-dollar starter homes, up from nine before the pandemic. Before 2020, this list was made up almost entirely of coastal states; Colorado was the only interior state with a million-dollar starter home city. Now, Texas, Wyoming and Illinois, among others, have multiple such cities.

The New York City metro area, which includes parts of New Jersey and Pennsylvania, leads all metro areas with 63 cities where a typical starter home costs $1 million or more. The San Francisco metro follows with 37, then Los Angeles (33), San Jose (13), Miami (8) and Seattle (8).

For buyers navigating today's market, Zillow Home Loans' BuyAbility℠ tool provides a personalized, real-time estimate of the home price and monthly payment that fit within their budget. Home listings on Zillow also include a down payment assistance module to help shoppers identify local programs that may be available to them.

For those who decide renting is the right call, Zillow Rentals® lists options across every price point and property type — including single-family homes, apartments and individual room listings. Renters can also use CreditClimb to report on-time rent payments to the major credit bureaus, building the credit history that will put them in a stronger position when they're ready to buy.

State	Cities with $1M+ Starter Homes  (April 2026)	Cities with $1M+ Starter Homes (April 2025)	Cities with $1M+ Starter Homes (February 2020)
United States	242	226	80
California	105	106	52
New York	41	31	12
New Jersey	26	21	1
Florida	11	11	4
Massachusetts	10	10	1
Washington	8	8	7
Texas	7	6	0
Connecticut	4	4	0
Hawaii	4	5	1
Maryland	4	4	1
Colorado	3	3	1
South Carolina	3	2	0
Wyoming	2	2	0
Illinois	2	1	0
Pennsylvania	1	1	0
Arizona	1	1	0
Georgia	1	1	0
Kansas	1	1	0
Michigan	1	1	0
Minnesota	1	1	0
Missouri	1	1	0
New Hampshire	1	1	0
Nevada	1	1	0
Rhode Island	1	1	0
Utah	1	1	0
Virginia	1	1	0

About Zillow Group
Zillow Group, Inc. (Nasdaq: Z and ZG) is reimagining real estate to make home a reality for more and more people.

As the most visited real estate app and website in the United States, Zillow connects hundreds of millions of consumers with innovative technology, trusted agents and loan officers, and seamless digital solutions. With industry-leading tools and resources, Zillow supercharges real estate professionals so they can grow their businesses and deliver exceptional client experiences. For renters and housing providers, Zillow offers not only a robust marketplace but a set of end-to-end products and services to streamline applications, leases, payments and more.

Zillow's ecosystem spans the entire home journey — from dreaming and shopping to renting, buying, selling and financing.

Zillow Group's affiliates, subsidiaries and brands include Zillow^®, Zillow Premier Agent^®, Zillow Home Loans^®, Zillow Rentals^®, Zillow^® New Construction, Trulia^®, StreetEasy^®, Out East^®, HotPads^®, Follow Up Boss^®, ShowingTime^®, dotloop^® and Zillow^® Closing.

All marks herein are owned by MFTB Holdco, Inc., a Zillow affiliate. Zillow Home Loans, LLC is an Equal Housing Lender, NMLS #10287 (www.nmlsconsumeraccess.org). © 2026 MFTB Holdco, Inc., a Zillow affiliate.

(ZFIN)

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/a-record-242-us-cities-now-have-starter-homes-that-cost-1m-302799560.html

SOURCE Zillow

FAQ

What did Zillow (NASDAQ:Z) announce about $1 million starter homes on June 15, 2026?

Zillow announced that 242 US cities now have typical starter homes costing $1 million or more. According to Zillow, this has nearly tripled from 80 cities in February 2020, highlighting a lasting affordability impact from the pandemic housing boom.

How much is the typical US starter home worth in 2026 according to Zillow (Z)?

Zillow reports the typical US starter home is worth $198,649 in 2026. According to Zillow, this value is up 1.7% from a year earlier and reflects homes in the lowest third of values within each local housing market.

Which states have seen the fastest growth in $1 million starter homes in Zillow (Z) data?

New York and New Jersey show the fastest growth in $1 million starter homes in Zillow’s data. According to Zillow, New York has 41 such cities, up from 12 pre‑pandemic, while New Jersey has 26, up from just one before 2020.

Which US metro areas lead in $1 million starter homes in the latest Zillow (Z) report?

The New York City metro leads with 63 cities having $1 million starter homes. According to Zillow, it is followed by the San Francisco metro with 37, Los Angeles with 33, San Jose with 13, and both Miami and Seattle with eight each.

How many US states now have cities with $1 million starter homes, based on Zillow (Z) analysis?

Zillow finds that 26 US states now have at least one city where starter homes cost $1 million or more. According to Zillow, this has expanded from just nine states before the pandemic, spreading beyond coastal markets into interior states like Texas and Wyoming.

What tools does Zillow (NASDAQ:Z) offer to help buyers and renters in high-cost markets?

Zillow offers its BuyAbility tool to estimate affordable home prices and payments for buyers. According to Zillow, listings include down payment assistance information, while Zillow Rentals and CreditClimb help renters find homes and build credit through reporting on‑time rent payments.