Map Shows States With Most Expensive Starter Homes

The number of cities where entry-level properties cost at least $1 million dollars has soared in recent years, underscoring the challenges facing America's prospective homeowners.

According to a new report from the online real estate marketplace Zillow, a record 242 cities have now seen the price of "starter homes"-those in the bottom third of values in a given region-rise to over $1 million.

This marks an increase from 226 last year, and the figure has more than tripled since February 2020, with now over half of all states housing at least one city where even the cheaper properties carry a seven-digit price tag.

Why Are House Prices Rising?

House prices in the U.S. have moderated in recent years, having also experienced sharp declines amid the financial crisis and in the years leading up to 2020. But prices surged to record levels during the pandemic as a mismatch formed between constrained supply and booming demand outside of the usual urban hubs.

Low mortgage rates boosted buyers' purchasing power, while remote work and lifestyle shifts drove an exodus to bigger homes, suburbs and smaller cities. At the same time, construction slowed because of labor shortages and supply chain disruptions, leaving fewer homes available just as more Americans were looking to buy.

And Zillow notes that many regions are “still feeling the pinch of this price reset.”

And despite recent declines-a reflection of pervasive buyer reluctance that is proving a challenge for the nation's sellers-homeownership remains out of reach for many looking to get on the property ladder.

Which States Have the Most Expensive Starter Homes?

According to Zillow, California is home to the highest number of cities where starter homes can cost buyers upwards of $1 million, over five times the typical price tag of $198,649. The 105, which researchers counted as of April, marks a drop from 106 last year, but is more than double the level (52) recorded in February 2020 before the Covid pandemic.

California is followed by New York at 41-another state known for housing some of the nation's most affluent residents, but also its sky-high property prices.

Among metro areas, the New York City area leads with a total of 63 cities, followed by San Francisco (37), Los Angeles (33), San Jose (13), Miami and Seattle (8).

“Million-dollar starter homes are popping up in more Northeast cities because the housing shortage there hasn’t been solved,” said Kara Ng, senior economist at Zillow. “Sun Belt markets have responded with new supply and seen price growth moderate as a result.”

However, Zillow notes that circumstances "are slowly becoming friendlier for buyers," with homeowners now breaking even compared with renting after about six years, down from eight in 2023.

“While it may feel like a market of beer tastes at champagne budgets, those million-dollar starter homes are still the exception,” said Ng. “More inventory, slower price growth and a narrowing rent-versus-buy gap mean buyers who are financially prepared are generally in better shape than in recent years.”

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This story was originally published June 17, 2026 at 1:35 PM.