Nearly half of $1M-plus starter homes in California

Starter homes now cost $1 million in record number of cities

According to a Zillow study, starter homes cost $1 million in 237 cities.

OAKLAND, Calif. - The number of first-time home buyers in several U.S. cities facing prices of $1 million or more has nearly tripled since 2019, according to recent research.

A Zillow study last week reported that the number of starter homes costing $1 million or more has grown from 84 cities to 237 cities nationwide.

Nearly half of these cities are in California, underscoring the state's housing affordability crisis.

In the report, Zillow defines starter homes as those in the lowest third of home values in a region.

It also highlights how the existing housing shortage worsened during the pandemic, raising the cost of all homes.

Starter home values have grown 54.1% over the past five years.

A Zillow expert shared her optimism about the future.

"It's looking more and more like there will be some good news ahead for first-time buyers. More homes are for sale, price cuts are on the rise, and buyers have a few more days to weigh their options as homes sit on the market," Orphe Divounguy, a senior economist at Zillow, said in a news release.

Zillow's chart shows there are 117 million-dollar starter home cities in California, 31 in New York, and 21 in New Jersey, which have the first, second, and third-highest numbers.