In more than 200 U.S. cities, the median home for sale is $1 million or more. Home costs have skyrocketed during the pandemic, driven by a housing shortage, increased demand, and rising inflation. Report from Zillow The typical home price in some markets is found to be much higher than the average American can afford.
A starter home is in the bottom third of home values in a given area, according to Zillow.
Five years ago, there were only 84 cities where the typical first home was worth $1 million. Between 2019 and 2024, the value of first homes rose 54.1%—which has contributed to delaying first-home purchases for many young Americans.
There’s a change on the horizon for potential first-time homeowners: There are an increasing number of homes on the market, giving buyers more time to evaluate their options. Housing inventory rises It can also help give buyers more negotiating power.
“The share of inventory for smaller, more expensive homes has increased, helping to keep the median price up even as prices per square foot have risen even more,” said Danielle Hill, chief economist at Realtor.com. “That’s some very welcome news for potential buyers.”
The median starting home price is $196,611. The real estate company called this price “Snugly at a reasonable price “For middle income families.”
California to Texas: Moving from California to Texas could save you $1 million. Many Americans have chosen this option.
About half of the cities with $1 million starter homes are in California.
Of the 237 cities with million-dollar first homes, half are in California. New York has 31 cities with the most expensive first homes, followed by New Jersey (21 cities).
Between 2019 and 2024, the number of California cities with million-dollar homes will double.
Zillow said markets with low homeownership rates tend to have more expensive first homes. The same goes for markets with low homeownership rates. Restrictive building regulationsThe low inventory is reflected in higher housing market prices.
California has one of the most expensive housing markets in the United States.
last year, California Community Survey The survey found that 4 in 10 Californians are considering moving out of state, with the majority saying it is too expensive to live there. Although the survey found that the majority of Californians like living in the state, the high cost of living is the main driver behind people moving.
Median home values in about 64 percent of counties in the Golden State are higher than the national average of $389,800. Four of the five most expensive counties in the United States by median home price are in California.
Housing statistics data at the governorate level From the American Community Survey Shows how much homes are worth across California.
Cost of living: Nearly half of Californians are considering leaving the state,
Outside of California, Massachusetts ranks fifth among counties with the highest median home prices:
- Santa Clara County, California: $1,583,130
- San Mateo County, California: $1,573,470
- Marin County, California: $1,454,450
- San Francisco County, California: $1,332,660
- Nantucket County, Massachusetts: $1,313,450
Logan Motashami, senior analyst at HousingWire, a trade magazine for mortgage, real estate and housing professionals, previously told USA TODAY that California has been ineffective at lowering the cost of living because not enough homes are being built, meaning demand for homes is greater than supply.
Mohtashemi described the housing market as unhealthy, saying, “We still have too many people looking for too few homes.” He added, “California is going to be a tug of war. Can they keep enough people here? Or do more people continue to move away?”
Contributing: Medora Lee, Itzel Luna, USA Today
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