The number of cities with starter homes that cost at least $1 million has increased dramatically over the past five years.

Three times as many cities have beginner homes that start at that price point this year compared with 2019, according to a new analysis from the real estate website Zillow.


What You Need To Know

  • The number of cities with million-dollar starter homes has increased from 87 in 2019 to 237 in 2024, according to Zillow

  • Nationally, the typical starter home is worth $196,611

  • A starter home is typically a home valued in the lowest third of values for a region

  • California tops the list of states with the most cities where starter homes cost $1 million or more

“Home buyers are battling affordability and availability today so much so that $1 million is the norm for a starter home for hundreds of cities,” Zillow Senior Economist Orphe Divounguy said in a statement.

A starter home is typically a home valued in the lowest third of values for a region. By that measure, 237 cities have starter homes that are valued $1 million or more, compared with 84 cities in 2019.

Half of all U.S. states have at least one city where a starter home costs at least $1 million. California tops the list of states with the most $1 million or more starter homes (117), followed by New York (31) and New Jersey (21), Florida (11) and Massachusetts (11).

Among metropolitan areas, New York City has the largest number of cities with million-dollar starter homes (48), followed by San Francisco (44), Los Angeles (35), San Jose, Calif. (15), and Miami (8).

The researchers noted that areas with the most restrictive building codes tended to have the most cities with $1 million starter homes.

While $1 million used to mean a lavish home, that is no longer the case as a housing shortage has driven up prices. Starter home values increased 54.1% over the past five years, according to Zillow, outpacing the average 49.1% increase for typical homes over the same time period.

Nationally, the typical starter home is worth $196,611.