The housing market is at a crossroads. While luxury homes are selling quickly, starter homes are seeing less buyer demand. According to a recent analysis from housing marketing platform Zillow, there are 4.5% more starter homes than there were last year and sales have fallen by 5.4% as of May. Meanwhile, the luxury market saw sales increase by 6.2% year-over-year.

For their analysis, Zillow defined starter homes as those in the fifth to 35th percentile of home values in a given region. Nationally, the typical starter home is worth about $202,000, up 2.3% from one year ago. Luxury homes, on the other hand, are defined as those in the top 5% of home values in a given region, making the typical luxury home worth about $1.9 million, up 3.1% from one year ago.

Why is this split happening?

Those in the market for starter homes have more options than they have in the past, but they don’t necessarily have the financial ability to make a purchase. However, high-income earners aren’t facing the same set of challenges and can therefore continue to make luxury purchases.

Where is the divide the sharpest?

The gap between luxury and starter-home sales is sharpest in San Francisco. There, luxury sales increased by 21.6% year-over-year in May, while starter-home sales fell by 1.2% during the same period.

However, Nashville recorded the highest year-over-year increase in luxury sales at 40%, compared with a 3% increase in starter-home sales. Meanwhile, starter-home sales fell the furthest in Detroit. In Detroit, they fell by 26.5%, but luxury-home sales also fell by 2.6% year-over-year in May in Detroit.