Starter homes cost $1 million in a record 242 U.S. cities—proof the affordability crisis has hit the homes meant for first-time buyers

Starter homes have reached million-dollar price levels in a record 242 U.S. cities, adding a new obstacle for Americans trying to enter the housing market. The Northeast is now the fastest-growing region for these high-priced starter properties.

Affordability pressures reach entry-level housing

The trend highlights how the affordability crisis has moved beyond larger or more expensive homes and into properties typically associated with first-time buyers. For households hoping to purchase their first home, the cost of an entry-level property has become a central challenge.

Many prospective buyers spent the years after the pandemic housing boom waiting, saving, renting and delaying a purchase. Despite those efforts, the typical first-time homebuyer has reached a record age of 40.

First-time buyers face a longer wait

The combination of higher-priced starter homes and an older typical buyer points to a tougher path into ownership. Buyers who postponed their plans are now confronting prices that can place even starter properties beyond reach.

The Northeast's position as the fastest-growing region for million-dollar starter homes makes it the most notable regional development in the data. Across the country, the presence of such homes in 242 cities shows that the pressure is not limited to a single local market.

What the trend means

The spread of million-dollar starter homes underscores the scale of the affordability problem facing first-time buyers. With entry-level prices rising and the typical buyer age at a record high, purchasing a first home is taking longer for many households.