Overview
- Zillow’s analysis released Monday found 242 U.S. cities where a typical starter home—the bottom third of local values—now costs $1 million or more, up from 80 before the pandemic.
- California leads with 105 cities on the list while New York and New Jersey have seen the fastest recent growth with 41 and 26 cities respectively.
- The national typical starter home value remains about $198,649 and the broader median U.S. home price is roughly $418,000, placing million-dollar starter markets as regional extremes not the national norm.
- Zillow and other housing analysts say the rise stems from the pandemic buying boom meeting a decade-long shortage of new housing and they recommend easing restrictive zoning and other barriers to increase supply.
- The shift makes entry-level ownership effectively unreachable for many households in affected metros, risks longer spells of renting and commuting, and adds pressure on local and state leaders to approve more housing construction.