Overview
- Zillow’s April 2026 analysis found a record 242 cities where the lowest third of homes—Zillow’s definition of a starter home—now costs $1 million or more.
- The number has nearly tripled from 80 cities in February 2020, reflecting strong pandemic-era demand and historically low mortgage rates that pushed values higher.
- California still has the most such cities at 105, but New York and New Jersey added the most in the past year, widening the geographic spread to 26 states.
- Zillow reports modest easing in buy-versus-rent math, with a typical buyer breaking even with renting in about six years, yet first-time buyer share and rising down-payment needs show barriers persist.
- Analysts and Realtor.com data point to restricted new construction and zoning limits as the main drivers of diverging regional trends and the clearest policy lever to improve affordability.