Hundreds of U.S. cities now have starter homes that cost $1 million
Summary
The number of U.S. cities where the cheapest homes cost $1 million or more has grown to 242, tripling since 2020. High home prices are mostly found in California and the Northeast, driven by housing shortages and strong demand during the pandemic.Key Facts
- A "starter home" is defined as a home in the lowest third of home values in a region.
- 242 U.S. cities now have starter homes costing at least $1 million.
- This number has tripled since 2020.
- The median U.S. home price is about $418,000.
- The typical starter home costs just under $199,000 nationally.
- Buyers need an annual income of about $117,000 to afford the average home.
- California has 105 cities with million-dollar starter homes, the most of any state.
- 26 states now have at least one city with starter homes costing $1 million or more, up from 9 states before the pandemic.
- The Northeast has more expensive homes due to ongoing housing shortages, while some Sun Belt areas have built more homes, easing price growth.
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