Record 242 US cities now have starter homes worth $1 million or more, Zillow reports
By
Zillow Group, Inc.
Summary
A record 242 US cities now have starter homes valued at $1 million or more, nearly tripling since 2020, according to a new Zillow analysis. The typical starter home nationwide is worth $198,649. The pandemic housing boom, driven by a decade-long housing shortage and historic low mortgage rates, has permanently reset affordability for first-time buyers. While conditions are slowly improving—the break-even point for buyers vs. renters has dropped from over 8 years to roughly 6 years—the number of million-dollar starter home cities continues to grow, up from 226 a year ago.
Source
Hacker NewsRecord 242 US cities now have starter homes worth $1 million or more, Zillow reportsinvestors.zillowgroup.comKey quotes
· 5 pulledThe bar for entry-level homeownership has never been higher.
While the typical starter home nationwide is worth $198,649, a record 242 cities now have starter homes valued at $1 million or more.
The count of cities with million-dollar starter homes has grown from 226 cities a year ago, even as affordability pressures have begun to ease in parts of the country.
The effects of the pandemic housing boom have proven durable.
The typical home buyer now breaks even relative to renting after roughly six years, down from more than eight years in late 2023.
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