Redfin reports that the typical U.S. starter home sold for a record $260,508 in August 2025, rising 2.2% year-over-year, as sales continued to outpace those of higher-priced tiers. Mid- and high-price home prices grew 1.4% and 2.7% year over year, respectively, to near-record highs of $370,000 and $575,000.
In comparison, sales of mid-price homes fell 0.6% year-over-year in July, while high-price homes fell 1.2%. Sales of mid- and high-price homes have declined year-over-year each month since February.
Pending sales of starter homes are also rising, up 3.1% year-over-year in August. In comparison, pending sales of mid- and high-price homes fell 0.1% and 0.8% year-over-year in August, respectively.
Freddie Mac reports the 30-year fixed-rate mortgage (FRM) at 6.30% as of September 25, 2025, up slightly from last week when it averaged 6.26%, but still dipping to lows last reported nearly a year ago.
“Starter homes are holding up better than other price points because they’re the most attainable option in a market where affordability is still stretched,” said Redfin Senior Economist Sheharyar Bokhari. “First-time buyers and downsizers alike are competing for the same pool of smaller, less expensive homes, which is keeping demand relatively strong even as higher tiers remain sluggish. For many households, stretching into the mid-tier isn’t feasible with high prices and elevated mortgage rates.”
David Palmer, a Redfin Premier Real Estate Agent in Seattle, added: “Starter home prices have climbed so much over the last decade that even with mortgage rates coming down from their peak, affordability is still a huge hurdle. At the same time, buyers who already own a home have more leverage—they can use the equity they’ve built to make stronger offers. That means entry-level buyers are often losing out to move-up buyers who have deeper pockets.”
Inventory Reaches Near-Decade High in August
Starter-home prices are rising at a modest rate despite relatively strong demand because there are a lot of them on the market. Active listings of starter homes are up 16.4% year over year to the highest August level since 2016.
In comparison, active listings of mid- and high-price homes grew 13.4% and 12.5% from a year earlier, respectively. Inventory growth is slowing, however, with new listings of starter homes ticking up just 0.3% year over year. New listings of mid- and high-price homes both fell 0.8% from a year earlier.
Time on Market Extended
The typical starter home sold in 41 days in August, a week slower than last year, while mid- and high-price homes took 40 and 41 days, respectively.
Just over a third (34.3%) of starter homes went under contract within two weeks in August, similar to homes in mid-price (34.4%) and high-price (32.3%) tiers.
Metro-Level Starter Homes: A Regional Look
- Prices: The median sale price of starter homes rose most in Milwaukee, Wisconsin (14.9% to $218,456); Detroit, Michigan (13.7% to $98,985); and Pittsburgh, Pennsylvania (10.3% to $139,337). The largest declines were in San Antonio, Texas (-5.5% to $214,493); Austin, Texas (-4.5% to $320,107); and Jacksonville, Florida (-4.2% to $249,049).
- Sales: Starter home sales increased most in Providence, Rhode Island (25.3%); Milwaukee, Wisconsin (12%); and Riverside, California (10.8%). They decreased most in San Antonio, Texas (-10%); Miami, Florida (-7.3%); and San Jose, California (-5.8%).
- Active listings: The total number of starter homes for sale increased most in Las Vegas, Nevada (42.9%); Miami, Florida (35.8%); and Seattle, Washington (33.7%). Active listings increased in all the metros analyzed, but those with the slowest growth were reported in Tampa, Florida (2%); San Antonio, Texas (2.2%); and Kansas City, Missouri (3.5%).
- New listings: New listings of starter homes increased most in Newark, New Jersey (14.8%); Nassau County, New York (10.4%); and New Brunswick, New Jersey (9.1%). New listings fell most in Jacksonville, Florida (-18.9%); Tampa, Florida (-17.6%); and San Antonio, Texas (-13.7%).
- Time on market: Starter homes sold fastest in Indianapolis, Indiana with a median of 16 days, followed by Seattle, Washington (17 days); Warren, Michigan (20 days); and Kansas City, Missouri (20 days). They sold slowest in Fort Lauderdale, Florida (109 days); West Palm Beach, Florida (102 days); and Miami, Florida (87 days).
Click here for more on Redfin’s analysis of starter homes.
