29 Places Where Starter Homes Are Still Affordable

If you're looking for a budget-friendly home, you've probably been told to look at starter homes. These properties are typically smaller, often with one or two bedrooms and a single bathroom, and they tend to cost less than larger houses.

But in today's market, even a starter home can feel out of reach.

While the national value for a typical single-family starter home is $198,648, which is comfortably within reach for a median-income household in the U.S., according to a Zillow analysis, this price point is far from reality many metros. Starter home value appreciation has outpaced other types of homes nationally, mostly because they’re so in demand. After all, they require a lower down payment, cost less to heat and cool, and help buyers begin building equity sooner.

So, where is it still possible to find truly entry-level homes that fit your budget? And how much less could you pay for a starter home versus a larger home? We’ve rounded up the data for you.

29 affordable starter home cities

Zillow economists analyzed home values across the nation's top 50 metros to find which home types are actually affordable for the people who live there.

The results are clear: dozens of markets have starter homes priced far below what experts consider “affordable.” In many cases, the gap is substantial, and it exists even in places where the typical home is way out of reach.

Take Charlotte, NC as an example. A typical single-family starter home there is worth $259,353. That’s $102,421 less than what a median-income household in Charlotte could spend before homebuying became unaffordable.

In these 29 metro areas, single-family starter home values range from 5% up to 61% less than the typical affordable home.

*As of April 30, 2026. Affordable home price based on a 20% down payment.

Condo value can be as much as 72% cheaper in some markets

Condos are the most commonly affordable home type in virtually every metro. At the starter level, the savings can be pretty significant.

Nationally, starter condos average $197,468 — that’s about 6% less than the typical starter home. But in many markets, that gap is far wider.

In Houston, for example, a starter condo is worth $85,615. That’s a whopping 72% less than the $305,792 a typical household could spend on an affordable home in the city.

In Washington, DC (where affordability is notoriously tight) a starter condo at $243,312 is still 53% below the $513,019 affordability threshold.

The same pattern holds in expensive coastal cities as well. In Seattle, a starter condo is worth $328,406, which is 30% below the affordability threshold. In San Jose — one of the nation's priciest markets — a starter condo at $596,121 is still 18% below the threshold.

Even where the market feels impossible, condos can open a door that would otherwise stay closed depending on your financial situation.

20 affordable places to buy a starter condo

In these metros, condos are at least 50% and up to 72% less than the typical affordable home.

*As of April 30, 2026. Affordable condo price based on a 20% down payment.

How you can find an affordable home

Even in these markets, the number of affordable homes listed for sale isn’t necessarily high, so buying might still be tough. Here are some tips: 

Know the right timing: The largest share of new listings typically hits the market in May or June. If current trends continue, buyers could find more options opening up in the spring and summer.

Check interest rates: If mortgage rates drop, affordability improves. Interest rates play a major role in what you can actually afford monthly, so keep an eye on updates from the Federal Reserve.

Strengthen your credit score: The higher your score, the more likely you are to qualify for a lower interest rate.

Know your budget: Zillow Home Loans' BuyAbility tool uses your financial information to give you a personalized estimate of what you can afford. Once you know your budget, you can search for homes within your range on Zillow.

Find homes in your budget with BuyAbility℠

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Get pre-approved: This is especially important in competitive markets. Use Zillow Home Loans to connect with a loan officer so you can get pre-approved for a loan, then be able to make offers quickly in a hot market.

Connect with an agent: Talk to an agent in your local market. They can help you build a strategy, spot the right listings, and evaluate your options. Affordable homes move fast, so you want someone in your corner who can help you move fast, too.

Keep in mind that these home types sit at the lowest end of the market. That means fixer-uppers and studio or one-bedroom condos are part of the mix. Condos also typically carry homeowners association fees for maintenance and improvements. A knowledgeable local agent will help you sort through what's worth it, and when waiting is the smarter play.

Think beyond affordability

Price is a starting point, but it's not the whole picture.

How you plan to use your home matters just as much as what you can spend. Whether you're building equity, stabilizing your housing costs, or putting down roots for the long term, the right home for your situation may not always be the cheapest one available.

Get clear on what matters most to you before you start shopping. Keep that list close. It'll help you stay focused and avoid chasing a deal that doesn't actually serve your needs.