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

About this update from Zillow Group, Inc.

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 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 mar...

View stock analysis, news, and events for Zillow Group, Inc.