--- title: "US Cities with Starter Homes Priced Over $1 Million Reach Record High" url: https://newscentral.site/us-cities-with-starter-homes-priced-over-1-million-reach-record-high/ language: en publisher: "News Central Site" section: "Business" published: 2026-11-07T14:27:20.000Z updated: 2026-11-07T16:38:06.080Z id: 1d0d5bb4-e1e1-4300-836b-f584b70b1c21 source: "Fortune https://fortune.com/article/starter-homes-cost-1-million-in-a-record-242-us-cities-affordability-crisis-younger-buyers/" attribution: "Link to https://newscentral.site/us-cities-with-starter-homes-priced-over-1-million-reach-record-high/ and name News Central Site when you quote or summarize this story." --- # US Cities with Starter Homes Priced Over $1 Million Reach Record High A record number of US cities now have starter homes priced at over $1 million, leaving first-time buyers struggling to enter the market. The affordability crisis has taken hold in areas meant for new homeowners, forcing them to delay their purchases even further. According to a recent Zillow report, 242 American cities now feature median home prices exceeding $1 million, up from just 80 before the pandemic and an increase of 226 cities over the past year. This surge is having a profound impact on the traditional demographic of first-time buyers. The typical age of these buyers has risen to a record high of 40 as they delay their purchases due to rising prices. Millennials, in particular, are finding it increasingly difficult to enter the market during their peak household spending years and as they begin forming families. New Jersey and New York have seen significant growth in million-dollar starter homes, adding 15 cities each to the list over the past year alone. The two states now account for more than half of all new additions to the list, with New Jersey jumping from one city to 26 and New York increasing its total to 41. The New York City metro area is leading the charge, boasting an astonishing 63 cities where starter homes exceed $1 million in price. This rapid growth has left many first-time buyers feeling priced out of the market, as they struggle to find affordable options for their new families. The rapid growth of housing prices has not been limited to a single region or market. In fact, six out of the top 10 most competitive housing markets in the country are located in the Northeast, according to Zillow's analysis for 2026. This region has historically struggled with new construction and inventory deficits, exacerbating the affordability crisis. The combination of intense demand and low mortgage rates has driven up home values at an unprecedented pace, making it increasingly difficult for buyers to afford even starter homes. For those in the Northeast, this perfect storm has pushed housing prices to record levels. Typically, first-time homebuyers are younger individuals, but recent data suggests that this demographic is getting older. According to a report released by the National Association of Realtors in November 2025, the average age of first-time buyers has risen to an all-time high of 40. This shift highlights the growing challenges faced by those attempting to enter the housing market. The number of first-time homebuyers has plummeted in recent years, with last July's numbers representing just half of what is considered a historical norm. This decline underscores the severity of the affordability crisis and its impact on the lives of prospective buyers. As starter homes become increasingly unaffordable, the bar for entry into the housing market continues to rise. The prevalence of million-dollar cities has created significant barriers to entry, requiring buyers to secure large down payments and higher incomes just to afford a home. The strain on affordability is particularly pronounced in markets where prices have reached $1 million or more, leaving many prospective buyers struggling to make ends meet. As one industry expert noted, the situation has worsened over the past couple of years, with no signs of improvement in sight. The affordability crisis gripping the US housing market is now affecting regions that were previously immune to it. According to Zillow's definition of a starter home as one in the lowest third of home values in a given region, over 200 cities have seen prices skyrocket, with some reaching as high as $1 million. This phenomenon is being driven by the lingering effects of the pandemic housing boom, which has pushed up prices nationwide. In fact, the typical starter home value across the country rose 1.7% to $198,649 in June, a relatively modest increase compared to the massive price jumps seen in some regions. The list of cities with $1 million starter homes is no longer limited to coastal areas alone. Before 2020, only Colorado was a non-coastal state with such high prices. However, the pandemic has now spread this phenomenon to 26 states, up from just nine previously. Some of these states have multiple cities with starter home prices exceeding $1 million. States like Texas, Wyoming, and Illinois are among those that have seen significant increases in starter home prices. California still leads the way with 105 cities, but the Northeast is experiencing the fastest growth. New York and New Jersey added a combined total of 15 new cities to their list over the past year, pushing up their totals to 41 and 26 respectively. The New York City metro area has become a hotspot for unaffordable starter homes, with 63 cities now having prices exceeding $1 million. Other major metros like San Francisco, Los Angeles, San Jose, Miami, and Seattle are also seeing significant price increases, driven by demand and limited supply in these areas. The effects of the pandemic on the housing market have proven to be long-lasting. The combination of a decade-long housing shortage and surging demand, fueled by historically low mortgage rates, has driven up home values at an unprecedented pace. For younger generations, this trend is particularly concerning. Millennials and Gen Z buyers are being edged out of the market by baby boomers who own paid-off homes or have secured cheap pandemic-era mortgages. This has led to a significant delay in major milestones for many Americans. Some individuals are opting for non-traditional solutions to overcome the affordability crisis. Instead of buying their first home, they're choosing to rent long-term or exploring co-living models. This shift is a result of the increasingly unattainable nature of homeownership. The housing market may finally be showing signs of stabilization. With more inventory becoming available and slower price growth, buyers who are financially prepared are in a better position than they were just a year ago. However, it remains to be seen whether this trend will continue. Zillow's research suggests that the typical buyer is now breaking even versus renting after about six years, down from over eight in late 2023. This improvement offers some hope for first-time buyers who are struggling to enter the market. In many parts of the United States, owning a starter home has become an unattainable goal for first-time buyers due to skyrocketing prices. The situation is particularly dire in 242 cities where the median price of starter homes has reached a staggering $1 million. This means that young buyers face significant financial hurdles, including larger down payments and higher monthly mortgage payments. The affordability crisis seems to be affecting areas across the country, but there are some exceptions. According to recent data, Texas appears to be an outlier, with many first-time homebuyers able to achieve their goal of homeownership in this region. --- Source: [Fortune](https://fortune.com/article/starter-homes-cost-1-million-in-a-record-242-us-cities-affordability-crisis-younger-buyers/) Published by News Central Site: https://newscentral.site/us-cities-with-starter-homes-priced-over-1-million-reach-record-high/