Zillow reports that homebuying remains challenging for many first-time buyers, with a record 242 U.S. cities now having “starter homes” valued at $1 million or more. Zillow defines a starter home as a property located in the lowest third of home values within a given region. According to Zillow, this count is nearly triple the number of cities identified in 2020, indicating a substantial rise in the price level of entry-point homes over time.
The findings highlight how affordability pressures extend beyond high-cost coastal areas, affecting a broader range of communities. Both reports note that Zillow’s measure focuses on the bottom tier of local home prices, rather than the median or typical listing price. Zillow’s analysis is presented as a snapshot of market conditions that prospective buyers may face when looking for the least expensive homes in their target areas. The data suggests that in these 242 cities, even the lower end of the market reaches the $1 million threshold, potentially narrowing options for buyers seeking to purchase without moving into more expensive segments.
