Zillow: 242 U.S. Cities Now Have Million-Dollar Starter Homes, Tripling Since 2020
Z•Zillow analysis shows 242 U.S. cities now have starter homes valued at $1 million or more, up from 80 in February 2020 and 226 a year ago. The typical starter home nationwide now costs $198,649, a 1.7% year-over-year increase, underscoring durable pandemic-driven price gains and regional affordability gaps.
1. Record Growth in Million-Dollar Starter Homes
2026 analysis identifies 242 U.S. cities with starter homes valued at $1 million or more, up from 80 in February 2020 and 226 a year ago.
2. Geographic Distribution
California leads with 105 cities, followed by New York (41) and New Jersey (26). Texas, Wyoming and Illinois now host multiple million-dollar starter home markets previously limited to coastal states.
3. Affordability Trends
Nationwide, typical starter home values reached $198,649, a 1.7% annual rise. Buyers now break even on buy-versus-rent in six years, down from eight in late 2023, reflecting easing yet still elevated affordability pressures.
4. Implications for Zillow
Persistent high prices drive traffic on Zillow’s platform and boost demand for its Home Loans and BuyAbility tools, positioning the company to capitalize on users seeking financing and market insights.
