Zillow reports record 242 U.S. cities with starter homes priced at $1 million or more

A new Zillow analysis shows that a record 242 U.S. cities now have entry‑level homes valued at $1 million or higher, nearly three times the number reported in 2020. The real‑estate data firm defines a starter home as one in the lowest third of home values within a region. Senior economist Orphe Divounguy explained that rising construction costs and limited supply are driving prices up. The trend threatens first‑time buyers’ ability to enter the market. Zillow’s “The Takeout” podcast featured a discussion on the implications for housing affordability. Analysts warn that the surge could exacerbate wealth gaps.

Skyrocketing entry‑level home prices affect homeownership prospects for younger generations.