The number of US cities where first-time homebuyers are faced with at least a $1 million price tag on the average entry-level home has nearly tripled in the past five years, according to new research.

A Thursday report from Zillow indicates that a typical starter home is now worth $1 million or more in 237 cities, up from 84 cities in 2019, underscoring America’s ongoing home affordability crisis.

“Affordability has been strained across the board,” Orphe Divounguy, a senior economist at Zillow, said. “We see the largest number of million-dollar starter homes in expensive coastal markets. We see them in markets with very low homeownership rates and we see them in markets with more building regulations.”

  • Maggoty@lemmy.world
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    3 months ago

    I mean it is supply and demand, it’s just ignorance of the extreme imbalance that’s been created.

    In the rental market there’s a cartel that needs to be dismantled but for buying homes it’s more to do with the vacuum that is wall street investing in those homes as rental properties.