242 US Cities Now Have $1 Million Starter Homes, Tripling Since 2020
ZG•Zillow data shows 242 US cities have starter homes over $1 million, up from 80 in February 2020, while the typical starter home nationwide now costs $198,649, a 1.7% year-over-year increase. California leads with 105 such cities and New York plus New Jersey added 15 combined.
1. Record Surge in Million-Dollar Starter Homes
The number of cities where typical starter homes cost $1 million or more rose to 242 in April 2026, nearly tripling from 80 in February 2020 and up from 226 cities a year ago, underscoring a durable shift in entry-level home values.
2. Regional Leaders and Growth
California leads with 105 cities now in the million-dollar starter tier, followed by New York at 41 and New Jersey at 26. New York and New Jersey combined added 15 such cities over the past year, reflecting deep supply constraints in the Northeast.
3. Affordability Trends and Buyer Break-Even
The median starter home nationwide now costs $198,649, a 1.7% increase year-over-year. The break-even period for buying versus renting has improved to six years from more than eight years in late 2023, indicating modest relief for prepared buyers.
4. Zillow’s Buyer Tools and Services
Zillow’s BuyAbility tool provides personalized, real-time home price and payment estimates, while its down payment assistance module and Zillow Rentals platform offer additional support. CreditClimb enables renters to build credit histories for future home purchases.
