From Business Insider:
5 years ago, only 85 US cities had starter homes that cost at least $1 million. Now there are 233.
The typical price of a starter home was $1 million or higher in 233 US cities last month, a new report from Zillow found.
To define starter home prices, Zillow looked at estimated home values toward the bottom of the market in each city, between the 5th and 35th percentiles for each area.
The real-estate listings site found that the typical price of starter homes in at least one city in half of all US states reached $1 million or higher.
The typical price for a starter home nationally stood at $192,514 — well under $1 million. However, the Zillow data shows just how expensive homes have become since 2020, including in states like Rhode Island and Minnesota that aren’t historically known for ultra-pricey real estate. Five years ago, only 85 cities had typical starter homes costing $1 million and up.
California led Zillow’s 2025 list of places with the most expensive starter homes, with 113 cities where the typical one is $1 million or higher. New York, with 32 cities, and New Jersey, with 20, followed.