California is house to almost half of all cities the place it prices at the very least $1 million to purchase a starter house. Nationwide, 237 cities at the moment are “million-dollar” cities.
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A typical starter house prices at the very least $1 million in 237 cities within the U.S., an enormous spike because the pandemic, in keeping with a brand new report Zillow launched on Thursday.
That’s practically thrice the quantity from earlier than the pandemic, when the everyday starter house value at the very least $1 million in 84 cities, the report discovered.
California accounted for practically half of all cities on the million-dollar record, with 117 cities, adopted by New York with 31 and New Jersey with 21.
“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,” mentioned Orphe Divounguy, a senior economist at Zillow. “However, it’s looking more and more like there will be some 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.”
Starter houses are outlined as these within the lowest third of house values for a given area.
The standard starter house prices $196,611 within the U.S., Zillow mentioned. That’s up 54.1 % over the previous 5 years, a progress price that exceeded the worth enhance for the everyday house over that very same span of time.
The New York metropolitan space — which incorporates components of New Jersey and Pennsylvania — has extra million-dollar cities than another space, Zillow mentioned. San Francisco was second on the record, adopted by Los Angeles, San Jose, Miami and Seattle.
These are usually markets with extra restrictive zoning codes that make it harder to construct new housing, Zillow famous.
“Markets with the most restrictive building regulations tend to have more cities with $1 million starter homes,” Zillow mentioned. “They are also markets with lower homeownership rates.”
