In 233 U.S. cities, even a starter home costs $1 million

Rhea-AI Summary

Zillow's latest analysis reveals a significant surge in cities with million-dollar starter homes, increasing from 85 cities five years ago to 233 today. The typical starter home nationwide remains at an attainable $192,514, but in these 233 cities, even entry-level homes cost $1 million or more.

California dominates with 113 such cities, followed by New York (32) and New Jersey (20). The phenomenon has spread to 25 states, with Minnesota and Rhode Island being recent additions. The New York City metro area leads with 48 cities having million-dollar starter homes, followed by San Francisco (43) and Los Angeles (34).

This trend reflects the pandemic housing boom's impact on affordability, causing many young households to postpone homeownership, with the median renter age now at 42 years.

Positive

• Sellers are making a stronger return to the market
• Buyers are gaining more negotiating power with longer listing times
• Price cuts are occurring at record rates
• Zillow's market presence expanding with comprehensive rental listings

Negative

• Housing affordability crisis intensifying with 233 cities having $1M+ starter homes
• Significant barrier to entry for first-time homebuyers
• Young households forced to postpone homeownership
• Median renter age increased to 42 years, indicating delayed homeownership

Half of all states have at least one city where entry-level homes top $1 million, a sign of how pandemic price growth reshaped housing affordability

• The number of cities where a typical starter home is worth $1 million or more has grown from 85 five years ago to 233 today.
• More than half of these cities with $1 million starter homes are in California.
• Nationwide, the typical starter home is worth less than $200,000.

SEATTLE, April 24, 2025 /PRNewswire/ -- Home shoppers hoping to buy their first home may be in for serious sticker shock. While the typical starter home nationwide is worth an attainable $192,514, there are more than 230 cities where a starter home comes with a price tag of $1 million or more, a new Zillow® analysis reveals.

A typical "starter home" — defined for this analysis as being among those in the lowest third of home values in a given region — is worth at least $1 million in 233 cities. Five years ago, there were only 85 such cities. However, the latest number has slipped slightly from 239 at the start of this year, as sellers have so far made a stronger return to the market than buyers, causing home values to soften.

"First-time buyers are facing a market where prices that once seemed unimaginable have become reality," said Kara Ng, senior economist at Zillow. "The encouraging news for buyers is that starter homes remain well below $1 million in most of the country. With more homes hitting the market, listings lingering longer, and sellers cutting prices at record rates, buyers are starting to regain some negotiating power."

Cities with $1 million starter homes still represent a small piece of American real estate, yet are a striking symbol of how the pandemic housing boom reshaped affordability. Many young households are postponing homeownership — the median age of a renter has risen to 42 years old — driving demand and prices for single-family rentals to new heights.

The $1 million starter home is no longer just a California phenomenon. To be sure, California still has the most cities with $1 million starter homes by a wide margin (113), but exactly half of U.S. states have at least one such city — including Minnesota and Rhode Island, which joined the list in the past year. After California, New York (32) and New Jersey (20) have the highest totals.

The New York City metro area, which includes parts of New Jersey and Pennsylvania, leads all metros, with 48 cities where a typical starter home costs $1 million or more. The San Francisco metro has the next-highest count at 43, followed by Los Angeles (34), San Jose (16), Miami (8) and Seattle (8).

Whether a buyer is navigating a million-dollar market or something closer to average, Zillow offers data and tools to help buyers make their move with confidence. Zillow Home Loans' BuyAbility℠ tool gives buyers a personalized, real-time estimate of the home price and monthly payment that fit within their budget, and it now quickly and clearly shows home shoppers listings within their BuyAbility. Home listings on Zillow also include a down payment assistance module to help shoppers see what local resources could be available to them.

For those looking to rent for now, Zillow Rentals has more properties than any other rental network¹ — including single-family homes, apartments and even individual room listings.

State	Cities with Million-Dollar Starter Homes (March 2025)	Cities with Million- Dollar Starter Homes (March 2024)	Cities with Million-Dollar Starter Homes (March 2020)
United States	233	209	85
California	113	100	54
New York	32	29	13
New Jersey	20	17	2
Florida	11	10	4
Massachusetts	11	10	0
Washington	8	8	7
Texas	7	7	0
Connecticut	4	4	0
Hawaii	4	4	1
Maryland	4	2	1
Colorado	3	3	1
South Carolina	2	2	1
Wyoming	2	3	0
Georgia	1	1	1
Arizona	1	1	0
Illinois	1	1	0
Kansas	1	1	0
Michigan	1	1	0
Missouri	1	1	0
New Hampshire	1	1	0
Nevada	1	1	0
Utah	1	1	0
Virginia	1	1	0
Minnesota	1	0	0
Rhode Island	1	0	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 and its affiliates help people find and get the home they want by connecting them with digital solutions, dedicated real estate professionals, and easier buying, selling, financing, and renting experiences.

Zillow Group's affiliates, subsidiaries and brands include Zillow®, Zillow Premier Agent®, Zillow Home Loans℠, Zillow Rentals®, Trulia®, Out East®, StreetEasy®, HotPads®, ShowingTime+℠, Spruce®, and Follow Up Boss®.

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). © 2025 MFTB Holdco, Inc., a Zillow affiliate.

¹ Zillow internal data on total rental properties compared to Apartments.com data published on its website and investor materials, October 2024.

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SOURCE Zillow

FAQ

How many U.S. cities now have starter homes costing $1 million or more?

As of April 2025, 233 U.S. cities have starter homes costing $1 million or more, slightly down from 239 at the start of the year.

Which state has the most cities with million-dollar starter homes?

California leads with 113 cities where starter homes cost $1 million or more.

What is the average cost of a starter home nationwide according to Zillow (ZG)?

According to Zillow, the typical starter home nationwide is worth $192,514.

How has the number of cities with million-dollar starter homes changed since 2020?

The number has increased dramatically from 85 cities in 2020 to 233 cities in 2025.

Which metro area has the most cities with million-dollar starter homes?

The New York City metro area leads with 48 cities where starter homes cost $1 million or more.