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Although the pandemic buying boom is over, it continues to impact consumer expectations and pricing trends throughout the country. Although the typical starter home is still below $200,000, there are a growing number of cities with starter homes priced at $1 million or more — a steep price for a first-time buyer.
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According to Zillow’s latest market report, the number of cities with $1 million starter homes has grown from 85 in 2020 to 233 in 2025, representing a 174 percent increase. California (113), New York (32), New Jersey (20), Massachusetts (11) and Florida (11) lead the way in the number of cities with seven-figure starter homes, with the remaining 20 states having at least one city where the median starter home clocks in at $1 million.
Kara Ng | Credit: LinkedIn
On a metro level, the New York City metro area, which includes parts of New Jersey and Pennsylvania, has 48 cities with $1 million starter homes. The San Francisco metro has the next-highest count at 43, Zillow said, followed by Los Angeles (34), San Jose (16), Miami (8) and Seattle (8).
Zillow Senior Economist Kara Ng said the report underpins the volatility of today’s market, which has led would-be homebuyers to delay their homeownership dreams. First-time homebuyer activity dropped to a new low in 2024, with the National Association of Realtors reporting this demographic only accounted for 24 percent of sales. The median age for first-time buyers also increased from 25 to 38, a new high since NAR began tracking sales.
“First-time buyers are facing a market where prices that once seemed unimaginable have become reality,” Ng said in a prepared statement.
Despite the growth in $1 million starter homes, Ng said there’s still plenty of opportunities for buyers to thrive.
The latest slate of existing-home and new-home sales data shows increasing inventory levels, which led to softening home price growth for existing stock and price declines for new builds.
“The encouraging news for buyers is that starter homes remain well below $1 million in most of the country,” Ng said. “With more homes hitting the market, listings lingering longer, and sellers cutting prices at record rates, buyers are starting to regain some negotiating power.”
