Starter Homes Cost At Least $1 Million In 117 California Cities
Authored by Summer Lane via The Epoch Times (emphasis ours),
California is one of the most expensive places to buy a starter home in the country, as 117 cities in the state have so-called starter homes priced at $1 million or more, according to a real estate analysis from Zillow.
New York was second to California, with $1 million starter homes in 31 different cities.
According to the analysis, such homes are priced among the lowest third of home values in a given region. Nationwide, $1 million starter homes are for sale in 237 cities, up from 84 in 2019.
Across the United States, the average starter home is $196,611. Over the past five years, those home values have increased by about 54 percent, according to Zillow.
The company’s data showed that this rapid rise in prices had slightly increased the median age of a first-time home buyer from 34 in 2019 to 35 in 2023.
The San Francisco metro area had the highest count of $1 million starter homes within its 44 cities, second to the New York City metro—which includes New Jersey and Pennsylvania—with 48 cities.
In California, the Los Angeles metro follows closely behind San Francisco with 35 cities having such priced starter homes, and 15 in the San Jose area.
The Southern California city of Irvine—with a population of over 300,000—is the largest city in the nation with $1 million starter homes, according to the analysis.
According to the National Association of Realtors, first-time homebuyers in America represent 32 percent of the real estate market and their median income is $95,900.
“Home buyers are battling affordability and availability today. So much so that $1 million is the norm for a starter home in hundreds of cities,” said Zillow senior economist Orphe Divounguy in a July statement.
But he also said there would be “good news” ahead for first-time buyers.
“More homes are for sale, price cuts are on the rise, and buyers have a few more days to weigh their options as homes sit on the market,” he said.
Sophie Li contributed to this report.