'Starter Homes' Cost $1M+ In These 113 CA Cities

CALIFORNIA — The Golden State tops the list of U.S. states with cities where even a "starter home" costs $1 million, according to a recent Zillow analysis.

It’s no surprise — California has long ranked among the most expensive places to live.

Across the country, first-time buyers need at least $1 million to purchase a home in 233 cities — and California is home to nearly half of them. There 113 cities in California where the lowest home prices are roughly $1 million or more, the report found.

The analysis by the Real Estate platform and databank defines starter homes as "being among those in the lowest third of home values in a given region."

In the 10 cities that topped California's list, the price for a starter home was much more than $1 million. In Los Altos Hills, an incorporated town in Santa Clara County, the price for a basic home is $4,751,547, according to data Zillow provided to Patch.

Here are the most expensive cities and towns to buy a starter home in California:

1. Los Altos Hills - $4,751,547
2. Atherton - $4,508,013
3. Hillsborough - $3,900,868
4. Hidden Hills - $3,437,837
5. Los Altos - $3,429,800
6. Monte Sereno - $3,282,398
7. Saratoga - $3,084,123
8. Portola Valley - $3,009,913
9. Montecito - $2,977,178
10. Belvedere - $2,925,462

Five years ago, just 85 cities nationwide had $1 million starter homes, according to Zillow. By our own calculations, that figure has jumped 174 percent.

Zillow called this phenomenon "a striking symbol of how the pandemic housing boom reshaped affordability."

And it's why many Millennial households aren't buying houses at the rate previous generations did.

The median age of a renter is 42 years old, according to Zillow, which has driven prices for single-family rentals up considerably.

And while the cities with seven-figure starter homes still make up only a small piece of U.S. real estate, exactly half of the American states have at least one city where starter homes cost this much.

The most recent states to join the list this year are Minnesota and Rhode Island. After California, New York and New Jersey follow the state.

The New York City metro area — spanning into New Jersey and Pennsylvania — tops the list with 48 cities where a typical starter home exceeds $1 million. San Francisco follows closely with 43 such cities, trailed by Los Angeles (34), San Jose (16), and both Miami and Seattle with 8 each, according to Zillow.

In a small signal of hope for buyers, the number of $1 million starter home cities did slip from 239 at the start of the year.

"With more homes hitting the market, listings lingering longer, and sellers cutting prices at record rates, buyers are starting to regain some negotiating power," according to Zillow.

Here is the full list of California cities, where $1 million is the minimum to buy a starter home:

1. Los Altos Hills
2. Atherton
3. Hillsborough
4. Hidden Hills
5. Los Altos
6. Monte Sereno
7. Saratoga
8. Portola Valley
9. Montecito
10. Belvedere
11. Rancho Santa Fe
12. Diablo
13. Palo Alto
14. Ross
15. Rolling Hills
16. Emerald Lake Hills
17. Woodside
18. Palos Verdes Estates
19. San Marino
20. Manhattan Beach
21. Del Mar
22. Stinson Beach
23. Laguna Beach
24. Alamo
25. Cupertino
26. Del Monte Forest
27. Newport Beach
28. Villa Park
29. Summerland
30. La Canada Flintridge
31. Belmont
32. Kentfield
33. Burlingame
34. Bell Canyon
35. Stanford
36. Tiburon
37. San Carlos
38. Menlo Park
39. Beverly Hills
40. Malibu
41. Coronado
42. Los Gatos
43. Piedmont
44. Orinda
45. Hermosa Beach
46. Millbrae
47. Rolling Hills Estates
48. Lafayette
49. Carmel-by-the-Sea
50. Sunnyvale
51. Mill Valley
52. North Tustin
53. Solana Beach
54. Danville
55. Bradbury
56. Moss Beach
57. Redwood City
58. Coto de Caza
59. Corte Madera
60. Rancho Palos Verdes
61. Campbell
62. Montara
63. San Martin
64. Santa Barbara
65. Los Olivos
66. Encinitas
67. Foster City
68. Santa Clara
69. Half Moon Bay
70. San Anselmo
71. Isla Vista
72. Kensington
73. Pleasanton
74. Los Alamitos
75. San Clemente
76. Bolinas
77. Mountain View
78. Santa Ynez
79. Milpitas
80. El Segundo
81. Dana Point
82. Ladera Heights
83. San Ramon
84. Pacifica
85. Redondo Beach
86. La Habra Heights
87. Avila Beach
88. Nicasio
89. Irvine
90. Pacific Grove
91. South Pasadena
92. Sunol
93. Fremont
94. Point Reyes Station
95. San Mateo
96. Moraga
97. Fountain Valley
98. La Crescenta-Montrose
99. Big Sur
100. Somis
101. The Sea Ranch
102. Sierra Madre
103. Larkspur
104. Morgan Hill
105. Santa Monica
106. Newark
107. Calabasas
108. Yorba Linda
109. Colma
110. Saint Helena
111. Altadena
112. San Jose
113. Walnut