$1 million starter homes spread to more cities
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A record 242 American cities now have typical starter homes valued at $1 million or more, according to a new Zillow report.
Why it matters: That's up from 226 cities last year — and 80 in February 2020, before the pandemic housing boom sent home prices soaring.
The big picture: 26 states had at least one city with million-dollar starter homes in April, up from nine states before the pandemic, Zillow found.
- California leads with 105 cities, followed by New York with 41 and New Jersey with 26.
- Zillow defines starter homes as those in the bottom third of home values in a given area.
Reality check: Seven-figure prices for entry-level homes remain the exception nationally. (The typical U.S. starter home is worth less than $200,000, per the report.)
- But affordability challenges persist due to a long-running housing shortage.
The bottom line: "Our list of $1 million starter homes is a cautionary tale of what happens when we don't build enough to meet demand," Zillow senior economist Kara Ng tells Axios.
