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

Zillow reported that starter homes now command at least $1 million in a record 242 U.S. cities, underscoring how the affordability crisis has spread to the entry-level segment of the housing market. The figure marks a new high for the share of metro areas where the least expensive tier of housing reaches seven figures, reflecting years of price appreciation and limited supply. The milestone matters because first-time buyers are being pushed into higher down payments and larger mortgages just as borrowing costs remain elevated. Watch upcoming Zillow inventory and listing data, along with mortgage-rate trends, for signs of whether entry-level supply improves or the million-dollar starter home becomes more widespread.