A million-dollar price tag no longer means lavish and luxurious living. In more than 200 U.S. cities, buyers will find a price tag of $1 million or more on the typical starter home, a new Zillow® analysis finds.

The typical "starter home" — defined for this analysis as being among those in the lowest third of home values in a given region — is worth at least $1 million in 237 cities, the highest number of cities ever. Five years ago, there were only 84 such cities.

Nationwide, the typical starter home is worth $196,611, which is comfortably affordable for a median-income household. But a housing shortage that worsened over the pandemic helped drive the cost of all homes to new heights. Starter home values have grown 54.1% over the past five years, even more than the 49.1% increase for the typical U.S. home in the same time frame. That has delayed the first home purchase for many. The median age of a first-time home buyer was 35 last year, a year older than in 2019.

"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," said 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."

Exactly half of all states have at least one city with a typical starter home worth $1 million or more. There are 117 such cities in California, well ahead of New York (31) and New Jersey (21), which have the second- and third-highest numbers. Florida and Massachusetts round out the top five with 11 each.

Among metropolitan areas, the New York City metro, which includes parts of New Jersey and Pennsylvania, has the most cities with million-dollar starter homes at 48. The San Francisco metro has the next highest count at 44, followed by Los Angeles (35), San Jose (15), and Miami and Seattle, each with eight. Irvine, with a population of more than 300,000, is the biggest city with $1 million starter homes.

Markets with the most-restrictive building regulations tend to have more cities with $1 million starter homes. They are also markets with lower homeownership rates.

First-time buyers shopping for a $1 million home, or perhaps something closer to average, can find tools to help on Zillow. Zillow Home Loans' new BuyAbility℠ tool will give buyers a personalized, real-time estimate of the home price and monthly payment that fit within their budget, and then provide insight into the likelihood of qualifying for a loan. Zillow can also help buyers find and connect with an expert loan officer from Zillow Home Loans as well as a real estate agent to help guide them through the process.

Zillow also has rental listings for single-family homes, apartments and even individual rooms for those who are not yet ready to jump into homeownership.