Zillow Says 242 U.S. Cities Now Have $1 Million Starter Homes, Up From 80 in 2020
Updated
Updated · Smart Cities Dive · Jun 23
Zillow Says 242 U.S. Cities Now Have $1 Million Starter Homes, Up From 80 in 2020
3 articles · Updated · Smart Cities Dive · Jun 23
Summary
242 U.S. cities now have starter homes worth at least $1 million, Zillow said, up from 226 a year earlier and nearly triple the 80 recorded in February 2020.
Post-pandemic demand has outstripped housing supply, helping drive prices to record highs even as the typical U.S. starter home still costs a far lower $198,649, up 1.7% from 2025.
California accounts for 105 of those cities, while New York and New Jersey added a combined 15 in the past year; million-dollar starter markets now span 26 states, up from nine before the pandemic.
Builders are producing somewhat more small homes—units under 1,800 square feet rose to 31% of single-family completions in 2024 from 23% in 2022—but industry groups say starter homes remain under 10% of new supply.
Why is new home construction falling despite a severe housing shortage and record-high prices?
With most homeowners 'locked-in' by low rates, will the housing market ever become affordable for new buyers?
Are tiny homes and zoning reforms a real solution or just a fantasy for fixing the housing crisis?
Million-Dollar Starter Homes: The New Barrier to Entry-Level Homeownership in America, 2026
Overview
By mid-2026, the idea of a starter home has dramatically changed, with million-dollar price tags now common in many U.S. cities. This shift began with the pandemic housing boom, when record-low mortgage rates and a limited supply of homes led to fierce competition among buyers. As a result, high-priced entry-level homes spread from a few coastal states to over two dozen states and hundreds of cities. The pandemic reset the cost of buying a home, pushing these expensive starter homes into new regions and fundamentally changing what first-time buyers can expect when entering the housing market.