Zillow finds 242 U.S. cities now have $1 million starter homes, tripling 2020 levels

Online real‑estate marketplace Zillow reported that 242 U.S. cities now have entry‑level homes priced at $1 million or more, a near‑triple increase from 2020. The firm defines a starter home as one in the lowest third of regional home values. Senior economist Orphe Divounguy noted that limited supply and rising construction costs are driving the surge. The trend poses a challenge for first‑time buyers seeking affordable entry points. CBS News MoneyWatch reporter Megan Cerullo discussed the broader implications for housing markets and policy responses.

The rise in high‑priced starter homes signals growing barriers to homeownership.