The starter-home market has shown signs of stabilization in recent months, but for many Americans, prices are still out of reach. Recent data from online lending platform LendingTree show that less than four in 10 homeowner households can afford a starter home nationwide. Currently, the nationwide starter home costs $200,000. With the median non-homeowner household earning $7,099 less than the $62,099 annual income needed to afford a starter home, this price is considered out of reach for 62% of households.

Millennials are most likely to afford a starter home compared with other generations

The report found that Millennials are the generation most likely to be able to afford a starter home. Among non-homeowners, 45.2% of Millennials ages 30 to 45 can afford one, compared with 40.7% of Gen Xers ages 46 to 61, 37.3% of Gen Zers ages 18 to 29, and 24.3% of Baby Boomers ages 62 to 80.

Where do starter homes cost the most?

Starter homes are the least affordable in Rhode Island. The typical starter home in Rhode Island costs $350,000, a price tag that just 16.5% of non-homeowners households in the state can afford. Utah ranks second. In Utah, the median starter home is more costly at $400,000, but 19.1% of the state’s non-homeowner households can afford a home at that price point. Similarly, in Hawaii, 19.2% of the state’s non-homeowner households can afford the median starter home price of $500,000.