When “Starter Homes” Cost $1 Million: What That Means for You

If you’ve been following housing trends lately, you might have seen the recent Axios article highlighting so-called “starter homes” in our area now hitting the $1 million mark. It’s a headline that definitely grabs attention—and for good reason.

The article pulls data from Zillow showing that in several Seattle-area suburbs, the bottom 30% of the housing market (yes, the lower third) now includes homes listed around or above $1 million. Places like Bellevue, Sammamish, and Mercer Island are at the center of this conversation. And while these neighborhoods have never really been “starter home” territory in the traditional sense, that’s where their current price points land within their local market range.

So, what does that mean for the rest of us?

1. If you already own a home in the Seattle suburbs, your equity has likely grown—significantly.

Even homes that would once have been considered modest or entry-level are now appreciating at rates that rival high-end properties. That kind of equity can be powerful. It can open up opportunities for a move, a remodel, or even help fund a future investment.

2. First-time buyers are facing a steeper climb—but they’re still buying.

This shift doesn’t mean that people aren’t entering the market. It just means the definition of a “starter home” is evolving. Buyers may need to adjust expectations, expand their search radius, or get creative with financing—but the dream of homeownership is very much alive.

3. These numbers reflect more than just price—they reflect demand, desirability, and long-term growth.

When the lowest-priced homes in an area are this high, it signals more than market inflation. It shows that people want to live here—for the schools, the communities, the proximity to jobs, and the lifestyle. And demand drives value.

As a realtor, I’m seeing this play out on the ground every day. If you’re curious what your own home might be worth in today’s market—or what your next move could look like—I’d love to chat. Whether you’re thinking long-term or ready to take the next step now, I’m here to help you navigate it with clarity and confidence.