Starter homes are getting harder to find. These 20 cities are bucking the trend.
Reported by Business Insider · October 10, 2026
First-time buyers have fewer affordable options as mortgage rates climb and starter-home prices rise, according to Business Insider.
Realtor defines a starter home as a listing priced at no more than 80% of the metro’s median list price.
The company reviewed 8,300 ZIP codes across the 100 largest metro areas. Just 18.3% were dominated by starter homes.
Realtor economist Hannah Jones said affordability depends not only on prices but also on whether suitable homes are available where buyers need to live.
The report points to a need for more entry-level homes at reachable prices to keep homeownership accessible. The article does not identify the 20 cities named in its headline.
Key points
- Starter homes are defined as listings at or below 80% of a metro’s median list price.
- Only 18.3% of ZIP codes studied were starter-home dominant.
- Realtor says more entry-level housing is needed to support first-time buyers.