Million-dollar starter homes extended from a few coastal states to more than two dozen across the nation as a result of the pandemic, which reset the cost of purchasing a home. A new Zillow study found that a record 242 cities in 26 states now have starter homes worth at least $1 million. A house in the lowest third of property values in a particular area is referred to as a typical “starter home.” Million-dollar starting homes are still the exception rather than the rule, since the average starter home value in the U.S. is now an estimated $198,649.
From 226 cities a year ago, there are now more places where the entry point for homeownership is $1 million or more. The housing boom caused by the pandemic has had long-lasting impacts. With mortgage rates at all-time lows, a ten-year-long housing shortage collided with fierce demand, causing home values to rise at an unprecedented rate.
However, buyer conditions are gradually improving, with the average home buyer currently breaking even in comparison to renting after about six years—as opposed to more than eight years in late 2023. Financially prepared purchasers are generally in better shape than in previous years due to more inventory and slower price increases.
| State | Cities with $1M+ starter homes (April 2026) | Cities with $1M+ starter homes (April 2025) | Cities with $1M+ starter homes (February 2020) |
| U.S. | 242 | 226 | 80 |
| California | 105 | 106 | 52 |
| New York | 41 | 31 | 12 |
| New Jersey | 26 | 21 | 1 |
| Florida | 11 | 11 | 4 |
| Massachusetts | 10 | 10 | 1 |
| Washington | 8 | 8 | 7 |
| Texas | 7 | 6 | 0 |
| Connecticut | 4 | 4 | 0 |
| Hawaii | 4 | 5 | 1 |
| Maryland | 4 | 4 | 1 |
There are now at least one million-dollar starter home in 26 states, up from nine before to the pandemic, with California still holding the top spot with 105 cities. Prior to 2020, the majority of the states on this list were coastal; the only inland state having a million-dollar starter house city was Colorado. There are now several similar cities in places including Texas, Wyoming, and Illinois.
The two states with the quickest rates of growth on the list are New York and New Jersey, which have added 15 cities between them in the last year. New Jersey now has 26, up just one, while New York has 41, up from just 12 prior to the pandemic. The trend is consistent with what Zillow discovered in its 2026 hottest markets analysis: six of the ten most competitive housing areas in the nation are located in the Northeast, where inventory constraints are severe and new building has lagged.
With 63 cities where a typical starter house costs $1 million or more, the New York City metro area—which includes portions of Pennsylvania and New Jersey—leads all metro regions. With 37, the San Francisco metro comes next, followed by Los Angeles (33), San Jose (13), Miami (8), and Seattle (8).
Overall, from just 80 in February 2020 to a record 242 now, the number of cities where a typical starter home is worth $1 million or more has almost tripled since before the pandemic, as the majority of cities with million-dollar starter houses are still in California, but the greatest expansion is being driven by New York and New Jersey. In conclusion, the average starter home value nationwide is $198,649, up from the previous year, leaving many aspiring homebuyers with looming financial worries surrounding homeownership in today’s volatile housing market.
However, experts assure that homeownership isn’t completely out of reach.
