You Need $1 Million For A Starter Home In Many Parts Of New York

Many New Yorkers now need to spend $1 million to purchase an entry-level home.

According to Zillow, the cost of an "entry-level" home has "never been higher."

242 US cities now have starter homes that cost $1M

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The number of cities with $1 million starter homes has nearly tripled since the start of the COVID pandemic.

Zillow's new study found that starter homes cost at least $1 million in 242 hometowns across the United States, which is up from 80 in February 2020 (just before the pandemic).

"The pandemic reset the cost of buying a home, spreading million-dollar starter homes from a handful of coastal states to more than two dozen states across the country," Zillow Senior Economist Kara Ng stated in a press release.

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For the study, a "starter home" was defined as a "home in the lowest third of home values in a given region."

41 New York Cities On List

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Zillow reports that a starter home costs $1 million or more in 41 cities across New York, that's up 10 in the past year.

"Million-dollar starter homes are popping up in more Northeast cities because the housing shortage there hasn't been solved," Ng added.

In February 2020, just 12 New York hometowns had starter homes that cost at least $1 million. This trend reflects severe inventory shortages and intense competition, forcing many first-time buyers to rethink their purchasing strategies.

Only California has more cities with $1 million entry-level homes.

Most Expensive Starter Markets In New York

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Zillow didn't list the 41 most expensive starter markets in New York, but Hudson Valley Post identified some of the priciest entry-level markets in the state.

Westchester County