Starter Homes Under $300K Vanish Across Dozens of US Cities

New analysis shows the American dream of an affordable starter home is disappearing fast.

Jan. 29, 2026 at 3:55pm

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A new Ziffy analysis of active listings across 855 US housing markets reveals that homes priced below the once-standard $300,000 entry point have all but vanished. In 42 markets, there isn't a single house or townhome listed under that level, and in another 13 markets, sub-$300,000 properties make up less than 1% of inventory, leaving first-time buyers with few affordable options.

Why it matters

The disappearance of starter homes under $300,000 signals the growing inaccessibility of homeownership, especially for younger and lower-income buyers. This trend has significant implications for the American dream of home ownership and the ability of first-time buyers to build wealth through real estate.

The details

The analysis found that nearly two-thirds of all active listings nationwide are now priced above $300,000, leaving just over a third below that threshold. In markets where local starter-tier prices climb past $300,000, affordable inventory collapses almost entirely, dropping to under 3% of available homes. Major metros like New York and Los Angeles have thousands of homes for sale, yet fewer than 70 are listed under $300,000 in each city, representing less than 1% of inventory.

  • The Ziffy analysis used a snapshot of Zillow inventory from December 23, 2025.

The players

Ziffy

A real estate data and analytics company that conducted the analysis of active listings across 855 US housing markets.

Jonathan Miller

A real estate analyst at Miller Samuel who commented on the 'lock-in effect' of higher mortgage rates keeping new starter listings off the market.

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What they’re saying

“With mortgage rates surging to their steepest rise in history beginning in early 2022, as the Fed pivoted to higher interest rates, the 'lock-in effect' has kept many new, starter listings off the market.”

— Jonathan Miller, Real estate analyst (The Post)

The takeaway

The disappearance of affordable starter homes across dozens of US cities signals a troubling trend for first-time and lower-income buyers, making the American dream of homeownership increasingly out of reach. This highlights the need for policy solutions to address the growing housing affordability crisis.