Million Dollars Buys Only Starter Homes in Over 230 U.S. Cities

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In over 230 U.S. cities, including 113 in California, $1 million buys only a starter home. A Zillow analysis highlights the soaring cost of housing. The report reflects broader affordability challenges across the nation.

A starter home is typically a small, entry-level property. Historically, these homes cost far less than $1 million.

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The Context

The Zillow analysis points to a heated housing market since the 2020s. High demand and low supply have driven prices upward.

California’s 113 cities include urban hubs like Los Angeles. The state’s housing crisis is among the worst in the U.S.

In 230 cities, $1 million buys modest homes, often under 1,500 square feet. This shift prices out many first-time buyers.

U.S. homeownership rates hover around 65%, per federal data. Rising costs threaten this cornerstone of the American Dream.

Some support policies to boost housing supply, like zoning reforms. Others argue for market cooling through higher interest rates.

The Zillow findings underscore a growing wealth gap. Affordability remains a pressing issue for American families.