A starter home is supposed to be just that—a home you can start with until you can afford to move on to something larger and better.
But, in an increasing number of states, starter homes are no longer the entry point into the housing market that they were just a few years ago. In many, they cost upward of $1 million.
“Areas where a starter home is priced at $1 million or higher are not very friendly to first-time buyers,” says Realtor.com senior economic research analyst Hannah Jones.
There are 28 states in the nation with at least one city where the median price for a starter home (defined as priced at or below 80% of the geography’s median) is $1 million or more, according to April 2025 Realtor.com data.
In general, start homes are smaller and priced lower than the median-priced homes in the area. And while traditionally they served as a springboard for younger homeowners to get into the market, they’re now increasingly being bought by older owners who likely have more income.
“The median first-time buyer age climbed to 38 years old last year, due in part to worsening affordability conditions,” explains Jones.
“Areas with an entry-level home price of $1 million likely do not attract many first-time buyers,” notes Jones.
California, which unsurprisingly has the most cities with pricey starter homes, is probably not where a person or family just beginning their homeownership journey will look for an entry point into the market—unless someone wealthier (say Mom and Dad) is helping or picking up the tab.
Neither is Massachusetts, which has nine cities on the list. However, if you go by percentiles, then the Bay State is the most difficult place for a first timer to get a starter home, with a whopping 40.9% of cities where the starter-home price point is over $1 million.
Plenty of states have homes priced below $1 million—if you know where to look
The good news: There are still many places where the entry point for homeownership is a lot lower than the ones listed here. You just have to find them. There are more than a dozen states on the list with no cities where the starter-home median price is $1 million or more.
Pennsylvania, Vermont, Ohio, and Maine are some of the surprising states where there are no cities where you’d likely have to cough up $1 million to get into the homeownership game.
“In parts of the country, first-time buyers can find affordability from moving a bit farther outside of the city or by considering a different home type, such as a condo or townhome,” says Jones. The data looked only at single-family homes.
Buyers might also want to put off homeownership until they either have more cash or prices come down to earth.
“Depending on their priorities, would-be buyers may opt to rent for longer, picking their locational preference over their desire to own a home,” says Jones.
What is clear is that middle-income, first-time buyers might want to look elsewhere than in these areas, where a starter home is likely to bust the budget.
California
Number of cities with starter homes priced at $1 million or more: 77
Percentage: 24.4%
The Golden State has a whopping 77 cities where a starter home will likely cost you $1 million or more. The top five most expensive cities are Rancho Santa Fe ($5.4 million), Malibu ($4.8 million), Beverly Hills ($4.8 million), Corona del Mar ($4.47 million), and even Pacific Palisades ($4.32 million), though much of it has burned to the ground.
“Palisades is still extremely expensive, even though it lost a heavy share of housing stock to the fires,” explains Jones. “There were 33.2% fewer homes for sale in Pacific Palisades in April compared to one year earlier, but prices were relatively flat. This means that home prices are not surging in Pacific Palisades, but the area remains among the most expensive in the U.S., and low inventory levels could keep upward pressure on home prices in the future.”
The “cheapest” city for starter homes priced over $1 million in the state is Granada Hills, at almost $1 million even.
(Realtor.com)
Florida
Number of cities with starter homes priced at $1 million or more: 25
Percentage: 7.5%
Coming in second with the most cities where a starter home will cost you mega bucks is the Sunshine State, with 25 cities where the median starter home price is $1 million or more. At least 7.5% of cities with more than 50 listings in Florida have starter homes priced at $1 million or more.
The top 5 most expensive cities for starter homes in Florida are Pinecrest ($3.1 million), Southwest Ranches ($2.57 million), Anna Maria ($2.4 million), Boca Grande ($2.4 million), and Palm Beach ($2.39 million).
New York
Number of cities with starter homes priced at $1 million or more: 10
Percentage: 12%
The Empire State has the distinction of having the most expensive city in the country for starter homes, Water Mill, Southhampton, where the median price tag is an eye-watering $5.48 million. Water Mill is an ultraexclusive hamlet in the South Fork region of Long Island.
Water Mill attracts celebrities such as Jennifer Lopez and Mariah Carey—not your typical starter-home buyer. It’s also where financier Brandon Miller, the husband of influencer Candice, took his life, reportedly over massively mounting debts.
(Realtor.com)
Colorado
Number of cities with starter homes priced at $1 million or more: 10
Percentage: 10.9%
The most expensive starter-home city in Colorado is Telluride, with a median starter-home price of $3.26 million. The least expensive is Steamboat Springs, at $1.14 million. Not exactly starter home-friendly.
Massachusetts
Number of cities with starter homes priced at $1 million or more: 9
Percentage: 40.9%
What is there to say about the Bay State? It’s got beaches, mountains, history, excellent health care institutions, elite universities, and nosebleed home prices.
The most expensive starter-home area is Nantucket, at $3.78 million. But you can hold out hope that one of these homes might suddenly experience a price plunge if it loses massive amounts of ocean frontage.
(Realtor.com)
New Jersey
Number of cities with starter homes priced at $1 million or more: 6
Percentage: 9%
Avalon is the priciest starter-home community in New Jersey, with a median price tag of $2.98 million. For a cheaper but still pricey starter home, try Ocean City, at $1 million even.
If you’re set on Jersey and don’t have the requisite bank account, don’t despair. Plenty of other towns in the Garden State have much cheaper starter homes.
Washington
Number of cities with starter homes priced at $1 million or more: 6
Percentage: 9%
It might surprise some to learn that the costliest starter-home city in Washington isn’t Seattle or Bellevue but little-known Woodinville. Starter homes here have a median price tag of $1.62 million.
The high price point is due to the small city’s easy access to Seattle—only a half-hour drive—and its location along the beautiful Sammamish River.
Connecticut
Number of cities with starter homes priced at $1 million or more: 4
Percentage: 28.6%
The priciest starter-home town in “the Christmas movie state” is the New York City metro suburb of Greenwich, with a median of $3.3 million. Many idyllic small cities dotting the Long Island Sound are right behind it, including Westport, New Canaan, and Madison.
(Realtor.com)
Hawaii
Number of cities with starter homes priced at $1 million or more: 4
Percentage: 16.7%
Kamuela on the Island of Hawaii is the most expensive starter-home city in the beautiful and pricey state of Hawaii, with a median price tag of $2,145,000. It’s followed by Kailua ($1.24 million), Koloa ($1.12 million), and Princeville ($1.1 million).
South Carolina
Number of cities with starter homes priced at $1 million or more: 4
Percentage: 4.3%
Kiawah Island tops the list for the city with the priciest starter homes, at a median of $2,467,000, followed by Isle of Palms, Daniel Island, and Folly Beach. Here, being near the water comes with a costly premium. South Carolina also just topped the list for states with the most foreclosures.
(Realtor.com)
