Housing News

The 10 Best Markets to Find a Starter Home in 2026

First-time homebuyers looking for an affordable home may want to take a closer look at the Midwest.

The housing markets of Toledo, Ohio; St. Louis; and Detroit have some of the largest shares of starter homes for sale in the country, according to a new Realtor.com report. And in metropolitan areas such as Kansas City, Mo., homebuyers may have more neighborhoods to choose from without stretching their budgets as far.

The findings offer some encouraging news as starter homes become harder to find nationwide. Just 36.2% of homes for sale qualified as starter-priced in August 2026, down from 38.1% in 2019.

Meanwhile, the national starter home price threshold climbed 30.8%, from about $260,000 to $340,000 over the same period.

“Affordability is only part of the story,” said Hannah Jones, senior economist at Realtor.com in a statement. “What matters as much is whether affordable homes are actually for sale in the places where buyers want and need to live.”

The report analyzed the nation’s 100 largest metropolitan areas, defining a starter home as one priced at or below 80% of its metro’s median listing price. (Metros include the main city, surrounding towns and suburbs, and smaller urban areas.)

For first-time homebuyers, expanding a search beyond a few preferred ZIP Codes may uncover more opportunities.

The Midwest offers more starter home choices

Toledo led the country with affordably priced homes for first-time buyers, with 42.1% of listings falling into the starter home category. St. Louis followed at 40.7%, with Detroit at 39.8%.

But the number of starter homes isn’t the only thing that matters. Where those homes are located can make a big difference.

“The Midwest continues to offer something that is increasingly rare: meaningful starter inventory spread across enough neighborhoods to give buyers both affordability and real choice,” said Jones.

Kansas City and St. Louis stand out because their starter homes are sprinkled throughout the metro, giving homebuyers more flexibility when considering schools, commutes, and amenities.

“St. Louis has held on to something most big metros lost over the past 15 years, and that’s starter homes a first-time buyer can actually afford,” said Luke Babich, CEO of St. Louis’s Clever Real Estate. “Prices here kept climbing, but they never ran away from buyers the way they did in places like Miami and Phoenix.”

By comparison, Toledo and Akron have fewer ZIP Codes where starter-priced homes make up at least 60% of listings.

Starter homes aren’t always cheap

Some expensive housing markets also made the Top 10, including Miami, Honolulu, and Bridgeport, Conn.

How is that possible? Realtor.com defines starter homes based on local prices, not a national dollar amount. A home priced below 80% of the median in Honolulu could still cost considerably more than a starter home in Toledo.

The distinction matters for first-time homebuyers comparing cities. A large share of starter-priced listings doesn’t necessarily translate into overall affordability.

For homebuyers considering an older starter home, Babich recommends budgeting for a thorough inspection and potential repairs. Homebuyers may want to consider an FHA 203(k) loan, which can be used to purchase the home and fund repairs and upgrades.

He also suggests getting fully pre-approved for a mortgage and exploring down payment assistance programs.

More first-time homebuyers may want to consider condos

The definition of a starter home is also changing.

Condos and townhomes accounted for 27.1% of starter-priced listings in August 2026, up from 18% in 2019.

For homebuyers priced out of detached single-family homes, a condo or townhome may offer a way into a preferred neighborhood at a lower purchase price.

However, homeowners association fees, insurance costs, and potential special assessments should all be considered when calculating the monthly cost of owning a condo or townhome.

Where else are starter home options improving?

Several metros have gained a higher percentage of starter homes.

Boise, Idaho, recorded the largest increase, up 4.7 percentage points. Portland, Ore., followed with a 4-point gain, while Des Moines, Iowa, increased 3.7 points.

San Jose, Calif., and Denver also saw gains, although their relatively high home prices may still present challenges for homebuyers.

Top 10 housing markets with the most starter homes

These metropolitan areas had the highest percentage of starter-priced listings in August 2026, according to Realtor.com.

1. Toledo, Ohio: 42.1%
2. St. Louis: 40.7%
3. Detroit: 39.8%
4. Miami: 39.6%
5. Honolulu: 39.5%
6. Akron, Ohio: 39.3%
7. Memphis, Tenn.: 39.2%
8. Dayton, Ohio: 39.2%
9. Bridgeport, Conn.: 38.2%
10. Pittsburgh: 38.1%