In more than 200 U.S. cities, the typical first home for sale is priced at more than $1 million. Home prices have soared during the pandemic due to a housing shortage, rising demand and rising inflation. Report from Zillow It turns out that the typical first home in some markets is priced well above what the average American can afford.
According to Zillow, starter homes are in the bottom third of home prices in a given area.
Five years ago, there were just 84 cities where the typical first home was worth $1 million. Between 2019 and 2024, first home values will increase by 54.1%, delaying first home purchases for many young Americans.
Changes are on the way for people looking to buy a home for the first time: There are more homes on the market, giving buyers more time to consider their options. Increasing housing inventory It also helps give the buyer more negotiating power.
“The share of smaller, cheaper inventory is Affordable Housing It’s growing, and that helps keep the median price down even as the price per square foot increases further.” “The housing market is on a downward trend,” said Daniel Hale, chief economist at Realtor.com. “This is very exciting news for potential buyers.”
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A typical first home is valued at $196,611. The real estate company estimates this price as “Comfortable Affordable For middle-income families.”
California to Texas: Moving from California to Texas could save you $1 million, and many Americans are in favor of it.
Nearly half of the cities with $1 million starter homes are in California.
Of the 237 cities with starter homes worth $1 million, half are in California. New York has 31 cities with expensive starter homes, followed by New Jersey (21).
Between 2019 and 2024, the number of cities with $1 million starter homes in California more than doubled.
Zillow said markets with lower homeownership rates tend to have more expensive first homes. Strict building regulations The decline in inventory is reflected in higher prices in the housing market.
California is one of the most expensive home markets in the US
last year, California Community Poll I found that Four in 10 Californians are considering moving Many in California’s most populous city say the cost of living is too high, and while the majority of Californians like living in the state, the poll found that the high cost of living is a major driver of departure.
About 64% of California counties have a median home price above the national average of $389,800. Four of the top five most expensive counties in the U.S., by median home price, are in California.
County-level housing statistics From the American Community Survey Here are home values across California.
Cost of living: Nearly half of Californians are considering moving out of state.
Outside of California, Massachusetts ranks in the top five 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 Mohtashami, chief analyst at HousingWire, a trade publication for mortgage, real estate and housing professionals, previously told USA Today that California has been ineffective in lowering the cost of living because not enough housing is being built, meaning demand for housing outstrips supply.
