Jun 1, 2026
Buying a house in 2026 can feel like a far-off dream for many everyday Americans. The median sales price of new houses sold in April 2026 was $422,500, according to the Census Bureau.
But new data from Zillow reveals two property types that aspiring homeowners might be overlooking: the starter home and condos.
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The national average value for a typical single-family starter home is $198,648, according to Zillow. Assuming a 30-year fixed-rate mortgage at 6.53% with a 20% down payment, a monthly mortgage payment would hover around $1,300. Starter homes usually have one or two bedrooms and a single bathroom.
So where are these entry-level homes? Zillow analyzed home values in the nation’s 50 largest metros and found 29 markets where there is a sizable gap between the starter home price and price of a home a family with the median household income in that city could comfortably afford.
Birmingham, Alabama, came out on top of the list with a starter home priced at $120,408, compared to the typical affordable home of $309,362 — a 61% difference. Pittsburgh, Pennsylvania, was second with a $120,016 starter home vs. a $289,238 affordable home price. Detroit, Michigan, was third with a $131,110 starter home compared to $293,463. St. Louis, Missouri ($141,874), and Memphis, Tennessee ($123,724), rounded out the top five.
Other notable cities worth considering, according to ZIllow include Columbus, Cleveland, Oklahoma City, Indianapolis, and Baltimore. Orlando ranked dead last on ZIllow’s list with a typical starter home value of just under $300,000. While the price may be affordable to some, it represented the lowest percentage difference in terms of a financial cushion buyers had before the property became unaffordable.
Condos can open doors
The savings can be even greater for starter condos, which Zillow puts at a national average value of $197,468.
According to the report, Houston has the most affordable starter condo at $86,615 — 72% less than the $305,792 a typical household there could spend on a home and afford it comfortably. Oklahoma City ranked second at $83,804, followed by Dallas at $128,682. Tampa and Washington also made the list despite being pricier markets. A starter condo in Washington goes for $243,312 — 53% less than the $513,019 affordability cap there.
Daryl Fairweather, chief economist at Redfin, told Moneywise Zillow’s data is largely consistent with trends she sees in Redfin’s own figures. She said many markets where homes are affordable on local median incomes are located in the Midwest and post-industrial Northeast — for example, Detroit, St. Louis, Pittsburgh, and Baltimore.
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“Home prices continue to rise each year, so the share of homes priced below $300,000 does fall every year,” Fairweather said. “However, many states and cities have passed legislation to make it easier for developers to build smaller, more affordable homes.”
These new homes come with a new-construction premium, Fairweather added. Over time, she expects to see an increase in condos, townhomes, and small-lot homes.
“In 12 to 18 months, I expect housing affordability to improve slightly as home prices increase more slowly than wages and mortgage rates fall following the conclusion of the war in Iran,” Fairweather said.
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Making a move
Fairweather added that if aspiring homeowners don’t want to move, they can focus on increasing their earnings above their local median income. This is definitely easier said than done. However, that’s “unfortunately the only option to comfortably afford housing costs in many high-cost-of-living metros.”
She cautioned that starter homes sometimes need significant renovations or may be condos in buildings with high HOA fees.
“Buyers should include the cost of maintenance, HOA fees, insurance and property taxes in their monthly housing budgets to determine if they are affordable,” Fairweather said.
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Amanda Smith is an Australian freelance journalist and writer based in the New York City area who reports on culture/society, technology, and health.
