Starter Homes Now Exceed $1 Million in Over 230 Cities: A Zillow Report
Starter Homes Now Exceed $1 Million
The latest Zillow analysis reveals that starter homes are now worth at least $1 million in 233 cities across the U.S. as of March, markedly up from just 85 cities five years prior. This significant escalation reflects the ongoing changes in the housing landscape, especially post-pandemic.
The Rise of Million-Dollar Homes
Kara Ng, senior economist at Zillow, states that first-time buyers are confronting a reality where prices that were once unimaginable have become commonplace. While nationally, the average starter home remains relatively affordable at $192,514, many areas have seen prices soar.
States with the Most $1 Million Starter Homes
- California leads with 113 cities.
- New York follows with 32 cities.
- New Jersey: 20 cities.
- Florida: 11 cities.
- Massachusetts: 11 cities.
Buyer Negotiating Power
As mortgage rates are elevated and prices rise, homebuyers are regaining some negotiating power. Zillow's findings indicate that while starter homes remain below the $1 million mark in most of the country, the number of cities exceeding that value is decreasing.
In March, the median existing-home sales price reached $403,700, with recent trends showing a slowing pace of price increases, while mortgage rates slightly dipped to 6.81%. For detailed insights on the housing landscape, please stay tuned.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.