The number of million-dollar starter homes is on the rise in cities across the U.S. A new report from Zillow finds that the number of cities where a starter home is worth $1 million or more has grown from 84 five years ago to 237 today.

According to Zillow, a typical “starter home” is among those in the lowest third of home values in a given region. Five years ago, only 84 cities had starter homes within the $1 million range. 

Nationally, the typical starter home is worth $196,611 and is considered comfortable for a median-income household. As the housing shortage worsened, Zillow reports the price of homes were driven up to record heights. 

In the past 5 years, starter home values have grown 54.1 percent more than the 49.1 percent compared to the typical U.S. home in the same time frame. Zillow reported this has delayed first home purchases for many buyers, with the new median age for a first-time home buyer hitting 35 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."

Zillow noted that half of all states have at least one city with a typical starter home worth $1 million or more. California has 117 such cities, followed by New York at 31 and New Jersey at 21. Meanwhile, the New York City metro, which includes parts of New Jersey and Pennsylvania, has the most cities with million-dollar starter homes at 48, followed by San Francisco metro area at 44, and the Los Angeles area at 35.

Zillow noted markets with the most restrictive building regulations tend to have more cities with $1 million starter homes and the lowest homeownership rates.