The number of U.S. cities where first-time homebuyers face a $1 million price tag for an average entry-level home has nearly tripled over the past five years.
According to a new Zillow report, 237 cities now have starter homes valued at $1 million or more, up from 84 in 2019.
This increase highlights the ongoing affordability crisis in the housing market.
Zillow’s senior economist, Orphe Divounguy, noted that these high-priced starter homes are most common in expensive coastal markets, areas with low homeownership rates, and places with stringent building regulations, CNN has reported.
California, New York, and New Jersey have the highest concentrations of such cities, though half of all U.S. states have at least one.
Written by B.C. Begley
