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starter home now costs at least $1 million in 233 US cities, according to a Zillow study. This is up from just 85 cities five years ago, highlighting the rising cost of homes even in areas once considered affordable.

    Zillow defines starter home prices as estimated values between the 5th and 35th percentiles for each city. The typical price of a starter home nationally was $192,514 last month, but this masks significant regional disparities. In fact, at least one city in half of all US states had a typical starter home price of $1 million or higher.

    California led the list with 113 cities where the typical starter home costs $1 million or more, followed by New York and New Jersey. Eight California cities made the top 15 most expensive cities for starter homes, with prices exceeding $3 million in some areas. Jupiter Island, Florida, took the top spot overall with a staggering $5,850,442 typical price.

    The rising cost of homes has put many homebuyers in tough spots, particularly first-time buyers. The median age of a first-time homebuyer hit an all-time high of 38 last year, and they made up only 24% of all transactions. Mortgage rates are also relatively high, making borrowing money more difficult.

    Increasing costs have led some potential buyers to delay or abandon their plans. Virginia resident Lawrence Talej was in contract for a $315,000 house in 2019 but pulled out when maintenance issues arose. Four years later, the median price for a home in his suburb of Richmond jumped over $100,000, causing him to put his plans on hold.

    Even those with healthy budgets and flexible location preferences are struggling to find affordable homes. Tech worker Madelyn Driver and her husband had a $700,000 budget but found it impossible to find a home that fit their needs. "We're finding that even in a vast country like the US, housing options that align with our desires for green spaces, a somewhat metropolitan vibe, and cultural vibrancy are surprisingly out of budget," she said.

    For those who do manage to buy a home, it's not always smooth sailing. First-time homebuyer Elsa felt pressure to buy before she was ready and took on credit card debt to keep up with the mortgage and other costs. "We definitely didn't anticipate having as many repair expenses," she said.