The Million-Dollar Starter Home Is Now a Nationwide Phenomenon

While the national median value for a starter home sits at $198,649, the concentration of seven-figure entry-level properties has migrated far beyond traditional coastal hubs. California remains the epicenter with 105 such cities, yet the most rapid expansion is occurring in the Northeast. New York and New Jersey added 15 million-dollar-plus cities in the past year alone, a trend Zillow senior economist Kara Ng attributes to persistent inventory deficits and restrictive zoning laws that have stifled new construction.

This geographical expansion marks a departure from the pre-pandemic era, when million-dollar entry-level markets were almost exclusively found in coastal states. Today, states including Texas, Wyoming, and Illinois have joined the list, signaling that the housing shortage is no longer a localized issue. Although affordability pressures are showing early signs of easing as inventory grows and price appreciation moderates, the threshold for first-time buyers in these competitive markets remains at a historic high.