ChatGPT says:
"Yes — Zillow’s latest research indicates that as of March 2025, 233 U.S. cities have reached the point where a typical “starter home” (defined as homes in the lowest third of values in a market) now costs $1 million or more .
Some important context:
A sharp jump: Five years ago, in 2020, only 85 cities were at that threshold. The increase to 233 reflects ongoing inflation in housing, combined with limited supply ."
Here in Texas, for me, a starter home is a cheap, cookie cutter, track house.
Housing is nuts. We sold my mom’s house in Montana for 550,000 and it would be what I would consider a starter home. I do not know how kids are doing it now especially when so many of them want to live like the Jet setters.
I am a bit bothered by that definition of a starter home. I don’t think it would be healthy for any housing market to have 1/3 of the total supply of homes be starter homes. I think a more realistic number might be 1/5 or even less. The idea of a starter home is that you live in a short period of time before you grow your family and move on. One third of the total supply of homes being for those that are just starting out isn’t realistic for anything other than a booming city. Any mature city will have far less “starters” in general.
I remember when purchased my first home in a planned community. We purchased the middle tier home. About 15-20% of the 300 homes were “starter” homes with a one car garage and no basement.
I know there exists a problem where those houses are not being built much at all, so perhaps starters are now twice the size they were 25 years ago.
“The key challenge is affordability, with median home prices up 52% compared to May 2019, while wages gained 30% over that period, according to Yun. Meanwhile, sales activity is running at 75% of what it was pre-COVID, Yun added.”
Maybe we all have a different definition. I consider homes in established neighborhoods that are older than 60 years old to be starter homes but I know that doesn’t apply to all neighborhoods.
I agree.
I wondered how other realtor companies define starter home.
ChatGPT says:
"From Realtor.com, Danielle Hale (Chief Economist) explains that a “starter home” is:
A first-time purchase — typically by someone entering homeownership to build equity.
Smaller and lower‑priced, often expected to be outgrown after a few years .
Historically around 800–1,000 sq ft, with 2 beds and 1 bath. Today, definitions vary based on bedroom count, square footage, or pricing relative to local norms .
Generally below median price in the area, an entry-level rung on the ladder."
And:
"Redfin’s definition is more data-driven, based on local market price distribution:
A starter home falls within the bottom 20–35% (or sometimes 5–35%) of listed home prices in a metro area .
Refers to lower-priced small homes—often 1–2 bedrooms condos, townhomes, or small single-families .
Typically envisioned as temporary—buyers move on in 3–7 years, though “lock-in” factors (like low mortgage rates) can extend stays."
Define the housing market If it is homebuilders, I would like to see more starter homes are build. That is the only way we can get more “affordable” starter homes. The existing “starter” homes are in established neighbourhoods are expensive.
US needs more starter homes, smaller homes, and more apartments/ multi-family/ condo’s.
The existing stock of mcmansions 2800 sq feet with 3 levels suck. We have been looking for a single level house or at least with a master bedroom at the main level, not able to find one. The ones that we are able to find are basically 35 year old houses.
US homebuilders, and housing inventory doesn’t reflect its population needs.
The boomers through millennials, (pumped by “Lifestyles of the Rich and Famous” etc?), had a horridly stupid thoughtless attraction to badly built, expensive to run (heat and air in badly insulated large volume spaces), movie set (those staircases and Front Doors) McMansions.
If I were starting out and planned on a family I would establish myself in internet-able form of work, buy some cheap because sadly neglected old home in some attractive rust belt type smallish city with a solid adjacent college/university and hospital and embark on intense DIY fixing up. A daughter of one of my Los Angeles godsons and her husband did just that two years ago, moving to Wisconsin. They are now at “breakthrough” with the house fully livable and rapidly rising in value, and last report said that twin boys are “on the way”.
But it took guts and energy and especially imagination on their part..
As suggested before, only a matter of time until some bright spark starts advocating removal of even more Hispanics and Muslims, from Shiny-land, to make more housing available for “real Americans”.
A sharp jump: Five years ago, in 2020, only 85 cities were at that threshold. The increase to 233 reflects ongoing inflation in housing, combined with limited supply ."
If it is homebuilders, I would like to see more starter homes are build. That is the only way we can get more “affordable” starter homes. The existing “starter” homes are in established neighbourhoods are expensive.