Starter homes hit $1 million in record 242 U.S. cities

First-time buyers hit record age

The typical first-time homebuyer age has climbed to a record 40, according to a National Association of Realtors report released in November 2025.

Million-dollar starter homes triple

A Zillow report published in June counts a record 242 U.S. cities where starter homes cost $1 million or more, triple the 80 cities before the pandemic.

Northeast becomes fastest-growing region

New Jersey had one million-dollar starter city before the pandemic; now it has 26. New York had 12; now it has 41. The two states added 15 cities in the past year alone.

New York City metro leads all regions

The New York City metro area now leads all with 63 cities where a starter home runs $1 million or more. San Francisco follows with 37, then Los Angeles with 33.

Crisis spreads beyond coastal states

Before 2020, million-dollar starter homes were almost all coastal. Now 26 states have at least one, up from nine before the pandemic. Texas, Wyoming, and Illinois each have multiple examples.

Pandemic boom reset home costs

A housing shortage a decade in the making collided with surging demand and historically low mortgage rates, pushing values up at a record pace. Those effects have stuck.

“A housing shortage a decade in the making ran headlong into intense demand with mortgage rates at historic lows, driving up home values at a record pace.”

Baby boomers edge out younger buyers

Baby boomers, sitting on paid-off homes or cheap pandemic-era mortgages, have edged younger buyers out of the market in record numbers. The cost has pushed some Americans to delay milestones like marriage and kids.

Affordability crisis strains down payments

Christopher M.Naghibi, executive vice president and chief operating officer at First Foundation Bank, said prospective buyers in these markets face higher barriers to entry, needing ridiculously large down payments and higher incomes to afford homes.

“Prospective buyers in these markets face higher barriers to entry, needing ridiculously large down payments and higher incomes to afford homes.”

Some buyers turn to alternative models

Alexandra Gupta, a real-estate broker with the Corcoran Group, said some first-time buyers are turning to long-term renting or co-living models because owning a home has become so out of reach.

“Some first-time buyers are turning to long-term renting or even co-living models because the idea of owning a home has become so out of reach.”

Modest relief emerging for buyers

Zillow found the typical buyer now breaks even versus renting after about six years, down from more than eight in late 2023.