A $1 million starter home? It's the norm in 237 cities
A Zillow analysis reveals that the number of U.S. cities with $1 million starter homes has nearly tripled since 2019, rising from 84 to 237. California leads with 117 such cities, followed by New York (31) and New Jersey (21). Nationwide, the typical starter home is worth $196,611, but values have grown 54.1% over the past five years, outpacing the 49.1% increase for the typical U.S. home.
This trend has delayed first-time home purchases, with the median age of first-time buyers increasing to 35. The New York City metro area has the most cities (48) with million-dollar starter homes, followed by San Francisco (44) and Los Angeles (35). Markets with restrictive building regulations tend to have more cities with high-priced starter homes and lower homeownership rates.
Un'analisi di Zillow rivela che il numero di città americane con case di partenza da un milione di dollari è quasi triplicato dal 2019, passando da 84 a 237. La California guida la classifica con 117 città, seguita da New York (31) e New Jersey (21). A livello nazionale, il valore medio di una casa di partenza è di 196.611 dollari, ma i valori sono aumentati del 54,1% negli ultimi cinque anni, superando l'aumento del 49,1% per le case americane tipiche.
Questa tendenza ha ritardato gli acquisti di case per i primi acquirenti, con l'età mediane dei compratori di prima casa che è salita a 35 anni. L'area metropolitana di New York City ha il maggior numero di città (48) con case di partenza da un milione di dollari, seguita da San Francisco (44) e Los Angeles (35). I mercati con normative edilizie restrittive tendono ad avere più città con case di partenza costose e tassi di proprietà abitativa più bassi.
Un análisis de Zillow revela que el número de ciudades en EE. UU. con casas iniciales de un millón de dólares casi se ha triplicado desde 2019, pasando de 84 a 237. California lidera con 117 ciudades, seguida de Nueva York (31) y Nueva Jersey (21). A nivel nacional, el valor típico de una casa inicial es de 196,611 dólares, pero los valores han aumentado 54.1% en los últimos cinco años, superando el incremento del 49.1% para las casas típicas en EE. UU.
Esta tendencia ha retrasado las compras de casas para los compradores primerizos, con la edad media de los primeros compradores aumentando a 35 años. El área metropolitana de Nueva York tiene la mayor cantidad de ciudades (48) con casas iniciales de un millón de dólares, seguida de San Francisco (44) y Los Ángeles (35). Los mercados con regulaciones de construcción restrictivas tienden a tener más ciudades con casas iniciales de alto precio y tasas de propiedad de vivienda más bajas.
질로우(Zillow)의 분석에 따르면, 2019년 이후 미국의 100만 달러 starter 집을 가진 도시 수가 거의 3배로 증가하여 84개에서 237개로 늘어났습니다. 캘리포니아가 117개 도시로 선두를 달리고 있으며, 뉴욕(31개)과 뉴저지(21개)가 뒤따릅니다. 전국적으로 전형적인 starter 집의 가치는 196,611달러이며, 지난 5년 동안 54.1% 증가했습니다. 이는 미국 전형 주택의 49.1% 증가를 초과합니다.
이러한 추세는 첫 주택 구매를 지연시키고 있으며, 첫 구매자의 중간 연령은 35세로 증가했습니다. 뉴욕시 대도시 지역은 100만 달러 starter 주택이 있는 도시가 가장 많아 (48개) 되며, 샌프란시스코(44개)와 로스앤젤레스(35개)가 뒤를 잇습니다. 건축 규제가 엄격한 시장에서는 가격이 높은 starter 주택이 있는 도시가 더 많고, 주택 소유율이 낮은 경향이 있습니다.
Une analyse de Zillow révèle que le nombre de villes américaines avec des maisons d'entrée à un million de dollars a presque triplé depuis 2019, passant de 84 à 237. La Californie est en tête avec 117 de ces villes, suivie par New York (31) et le New Jersey (21). À l'échelle nationale, la valeur typique d'une maison d'entrée est de 196 611 dollars, mais les valeurs ont augmenté de 54,1% au cours des cinq dernières années, dépassant l'augmentation de 49,1% pour la maison américaine typique.
Cette tendance a retardé les achats de première maison, l'âge médian des premiers acheteurs atteignant 35 ans. La région métropolitaine de New York compte le plus grand nombre de villes (48) avec des maisons d'entrée à un million de dollars, suivie par San Francisco (44) et Los Angeles (35). Les marchés ayant des réglementations de construction restrictives tendent à avoir plus de villes avec des maisons d'entrée à prix élevé et des taux de propriété plus bas.
Eine Analyse von Zillow zeigt, dass die Anzahl der US-Städte mit Starter-Häusern für eine Million Dollar seit 2019 fast verdreifacht wurde, von 84 auf 237 gestiegen ist. Kalifornien führt mit 117 solcher Städte, gefolgt von New York (31) und New Jersey (21). Im ganzen Land beträgt der typische Wert eines Starter-Hauses 196.611 Dollar, aber die Werte sind in den letzten fünf Jahren um 54,1% gestiegen, was die 49,1%ige Steigerung für das typische US-Haus übertrifft.
Dieser Trend hat den Kauf von Ersterworben verzögert, wobei das mittlere Alter der Erstkäufer auf 35 Jahre gestiegen ist. Der Ballungsraum New York City hat die meisten Städte (48) mit Starter-Häusern im Wert von einer Million Dollar, gefolgt von San Francisco (44) und Los Angeles (35). Märkte mit strengen Bauvorschriften neigen dazu, mehr Städte mit hochpreisigen Starter-Häusern und niedrigeren Eigentumsquoten zu haben.
- Zillow's BuyAbility℠ tool provides personalized estimates for home prices and monthly payments within buyers' budgets
- Zillow offers rental listings for those not ready for homeownership
- More homes are for sale, and price cuts are on the rise
- The number of cities with $1 million starter homes has increased from 84 to 237 in five years
- Starter home values have grown 54.1% over the past five years, outpacing overall home value growth
- The median age of first-time home buyers has increased to 35, up from 34 in 2019
- Housing shortage has driven the cost of all homes to new heights
Insights
As a financial analyst, I find this data on starter home prices deeply concerning for the housing market and broader economy. The tripling of cities with million-dollar starter homes since 2019 signals a severe affordability crisis. With the median starter home now at
This trend has significant implications:
- Delayed homeownership, evidenced by the rising median age of first-time buyers to 35, could impact wealth accumulation for an entire generation.
- Increased demand for rentals, potentially driving up costs in that market as well.
- Possible migration trends as buyers seek more affordable markets, potentially impacting local economies and job markets.
The concentration of high-priced starter homes in states with restrictive building regulations suggests a supply-side problem exacerbating the issue. This could lead to calls for policy changes to increase housing supply in high-demand areas.
The proliferation of million-dollar starter homes across 237 U.S. cities reveals a critical urban planning challenge. This trend disproportionately affects coastal states and major metropolitan areas, highlighting the need for comprehensive urban development strategies.
Key observations:
- California's dominance with 117 such cities underscores the state's severe housing crisis, likely driven by strict zoning laws and land availability.
- The concentration in metro areas like New York (48 cities) and San Francisco (44 cities) indicates a failure to balance job market growth with housing supply.
- The correlation between restrictive building regulations and million-dollar starter homes suggests that current urban planning policies are exacerbating affordability issues.
To address this, cities must consider:
- Relaxing zoning laws to allow for higher-density housing
- Implementing inclusionary zoning policies
- Investing in public transportation to make outlying areas more accessible
- Encouraging mixed-use developments to create more housing near job centers
Without significant policy changes, we risk creating economically segregated cities, hindering social mobility and economic growth.
From a market research perspective, the surge in million-dollar starter homes presents a complex landscape for various industries. The shift from 84 to 237 cities with such high-priced entry-level homes in just five years is reshaping market dynamics across sectors.
Key implications:
- Real Estate Tech: Companies like Zillow are well-positioned to capitalize on this trend. Their BuyAbility℠ tool addresses a growing need for sophisticated home-buying assistance in a challenging market.
- Rental Market: With homeownership delayed, we can expect increased demand for high-quality, long-term rentals, potentially spurring innovation in the rental property management sector.
- Financial Services: There's likely to be growing demand for creative financing solutions, possibly leading to new mortgage products tailored for high-cost markets.
- Construction and Home Improvement: In areas with restrictive building regulations, we might see a boom in home renovation as people opt to improve existing properties rather than move.
This trend also signals potential opportunities in affordable housing solutions, modular home construction and financial education services focused on homeownership. Companies that can innovate to address affordability challenges while navigating regulatory landscapes are likely to find significant market opportunities.
The number of cities with 'million-dollar' starter homes has nearly tripled since 2019
- The number of cities where a starter home is worth
$1 million - Nearly half of these cities with "million-dollar" starter homes are in
California . - The typical starter home nationwide is worth less than
$200,000
The typical "starter home" — defined for this analysis as being among those in the lowest third of home values in a given region — is worth at least
Nationwide, the typical starter home is worth
"Home buyers are battling affordability and availability today. So much so that
Exactly half of all states have at least one city with a typical starter home worth
Among metropolitan areas, the
Markets with the most-restrictive building regulations tend to have more cities with
First-time buyers shopping for a
Zillow also has rental listings for single-family homes, apartments and even individual rooms for those who are not yet ready to jump into homeownership.
State | Cities with Million-Dollar | Cities with Million-Dollar | Cities with Million-Dollar |
117 | 98 | 53 | |
31 | 26 | 13 | |
21 | 15 | 2 | |
11 | 10 | 4 | |
11 | 9 | 0 | |
8 | 8 | 5 | |
7 | 6 | 1 | |
5 | 4 | 1 | |
4 | 2 | 0 | |
3 | 3 | 1 | |
3 | 1 | 0 | |
2 | 2 | 1 | |
2 | 2 | 1 | |
1 | 1 | 1 | |
1 | 1 | 1 | |
1 | 1 | 0 | |
1 | 1 | 0 | |
1 | 1 | 0 | |
1 | 1 | 0 | |
1 | 1 | 0 | |
1 | 1 | 0 | |
1 | 1 | 0 | |
1 | 0 | 0 | |
1 | 0 | 0 | |
1 | 0 | 0 |
About Zillow Group
Zillow Group, Inc. (Nasdaq: Z and ZG) is reimagining real estate to make home a reality for more and more people. As the most visited real estate website in
Zillow Group's affiliates, subsidiaries and brands include Zillow®, Zillow Premier Agent®, Zillow Home Loans℠, Trulia®, Out East®, StreetEasy®, HotPads®, ShowingTime+℠, Spruce® and Follow Up Boss®.
All marks herein are owned by MFTB Holdco, Inc., a Zillow affiliate. Zillow Home Loans, LLC is an Equal Housing Lender, NMLS #10287 (www.nmlsconsumeraccess.org). © 2024 MFTB Holdco, Inc., a Zillow affiliate.
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SOURCE Zillow
FAQ
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