1 Million Starter Homes Are Common In More Than 100 Towns In America Zillow Data Shows

$1 Million Starter Homes Become the Norm in Over 100 Cities

Zillow Report Highlights Rising Housing Costs for First-Time Buyers

Escalating Property Values Strain Affordability

Recent data from Zillow reveals a sobering reality for aspiring homeowners: the typical starter home now commands a price tag of $1 million in over 100 cities across the United States.

The report, released on July 25, 2024, paints a grim picture for first-time buyers who are struggling to enter the housing market. Zillow defines a starter home as a property with three or four bedrooms and two or more bathrooms, and its analysis shows that the average price for such homes has soared in recent years.

According to the report, 237 cities now have starter homes with a typical value of $1 million or more. This represents a significant increase from previous years, reflecting the broader trend of rising housing costs that have made homeownership increasingly out of reach for many.

The report also highlights the geographical distribution of these expensive starter homes. While half of all states have at least one city with a $1 million starter home, nearly half of the national total are located in California, Florida, and New York.

The surge in starter home prices is putting a strain on the housing market and making it more difficult for first-time buyers to achieve their dream of homeownership. The lack of affordable housing options is a growing concern that policymakers and housing advocates are seeking to address.