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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).