Cities Where Starter Homes Cost At Least $1M

Since before the onset of the COVID-19 pandemic, the share of cities where the typical starter home is worth at least $1 million has nearly tripled. In February 2020, there were only 80 cities where starter homes cost $1 million or more, but today, that figure has grown to 242 cities, according to a recent analysis from real estate marketing platform Zillow.

A $1 million starter home is still not the nationwide norm

Despite the growth in areas with $1 million starter homes, it is still the exception across the U.S. According to the report, a starter home nationwide is defined as a home in the lowest third of home values in a given region. Nationwide, the typical starter home costs just $198,649.

Which states have the most starter homes over $1 million?

California has the most cities with starter homes over $1 million, but a few other states are trailing closely behind. California still leads overall with 105 cities. However, New York and New Jersey have seen the most growth since 2020. New York’s total has reached 41, compared with just 12 before the pandemic. Meanwhile, the share of cities in New Jersey has grown to 26, up from only one in February 2020.

In some states, $1 million starter homes are still sparse

In several states, there is only one city where the typical starter home costs $1 million or more. This was the case for Virginia, Utah, Rhode Island, New Hampshire, Minnesota, Michigan, Kansas, and Missouri, among others. Still, in all of these states, there were zero cities with $1 million starter homes in February 2020.