Within the past year, Minnesota and Rhode Island joined the growing list of states with at least one city where a typical starter home costs at least $1 million.
As defined by Zillow in a new report, a typical starter home is in the lowest third of home values in a given region. In March this year, buyers in at least 233 cities in the U.S. had to confront the reality of the $1 million base price—up from 209 in March 2024, though down from 239 at the start of the year. Five years earlier, there were only 85 cities in this category.
Fortunately for most would-be homebuyers, the typical starter home nationwide is more affordable at $192,514.
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However, half the states now have one or more cities where the price of entry to homeownership starts at $1 million. California heads the list, adding 13 cities to its inventory between March 2024 and March 2025 to reach 113 – almost half the national total. New York follows, increasing the state total for such cities from 29 to 32. Other states where the numbers grew during the 12 months were New Jersey (from 17 to 20), Maryland (from 2 to 4), as well as Florida and Massachusetts (from 10 to 11 each), while Minnesota and Rhode Island each gained one for the first time. The number fell from three to two cities in one state, Wyoming.
“The New York City metro area, which includes parts of New Jersey and Pennsylvania, leads all metros, with 48 cities where a typical starter home costs $1 million or more. The San Francisco metro has the next-highest count at 43, followed by Los Angeles (34), San Jose (16), Miami (8) and Seattle (8),” the report stated.
The rise of the ultra-expensive basic home comes even as buyers are starting to regain some negotiating power as more homes come to market and take longer to sell, and sellers are cutting prices at record rates, according to Kara Ng. Zillow’s senior economist. “Sellers have so far made a stronger return to the market than buyers, causing home values to soften,” the report said.
“Cities with $1 million starter homes still represent a small piece of American real estate, yet are a striking symbol of how the pandemic housing boom reshaped affordability.”
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