More than 233 states across the U.S. have cities where starter homes are priced at $1 million or higher.
Buying a starter home has become more challenging over the past few years. According to recent research from housing market platform Zillow, there are now 233 cities where a starter home costs at least $1 million. Five years ago, only 85 cities had starter homes for $1 million or more. However, this is a slight improvement from the start of 2025 when 239 cities had $1 million starter homes.
California has the most cities with $1 million starter homes—113 cities—but it is not the only state seeing starter home prices grow. Half of all U.S. states have at least one city with $1 million starter homes. Following California, New York and New Jersey have the most cities with starter homes in this price range—32 and 20 cities, respectively.
While cities with $1 million starter homes still represent a small piece of American real estate, they are a striking symbol of how the pandemic housing boom reshaped affordability. Many young households are postponing homeownership — the median age of a renter is up to 42 years old — driving demand and prices for single-family rentals to new heights.Read more
