Miami Among Nation's Most Costly Cities for Starter Homes

Middle-class millennials and others looking to buy their first home may want to look elsewhere — because, according to new data from Zillow, the number of cities where starter homes cost $1 million has almost tripled.

And it probably surprises no one that Miami is near the top of that list.

According to Zillow, there were only 85 cities where a typical starter home, defined as those in the lowest 30 percent of home values in a given region, cost $1 million five years ago. That number swelled to 233 by 2025.

Zillow places the average starter home price in the United States at $192,514. Meanwhile, in cities like New York City, San Francisco, Miami, and Seattle, starter homes begin at the $1 million mark.

The New York City metro area, which includes parts of New Jersey and Pennsylvania, led all metros with 48 cities where starter homes cost at least $1 million. San Francisco was the second-highest with 43; then Los Angeles, 34; San Jose, 16; Miami, eight; and Seattle, eight, according to Zillow.

While dozens of single-family homes in Miami are listed far below $1 million, Zillow’s analysis focused on those representing the least expensive third of all the houses for sale in each city. It found home prices high enough to push several million-dollar homes to the bottom third of costliness.

Miami Real Estate expert Audrey Ross tells New Times that starter home prices are high in Miami for several factors.

“Major companies are moving to Florida and bringing with them young families,” Ross tells New Times. “They’ll rent a place for a while until they find the area they’re comfortable in and then look for a starter home.”

Areas like Coconut Grove and Brickell are popular among young homebuyers because they’re close to business centers and boast plenty of recently renovated homes and new construction, Ross said.

“Miami’s a hot market right now,” Ross tells New Times.

It wasn’t immediately clear which Miami-area cities made the list, and Zillow didn’t return requests for comment.

According to Zillow, the price rise is “a striking symbol of how the pandemic housing boom reshaped affordability. Many young households are postponing homeownership — the median age of a renter is up to 42 years old — driving demand and prices for single-family rentals to new heights.”