The Best Cities for First-Time Homebuyers
More affordable homes can be found here.
This year is one of the most competitive in home shopping history, with fewer homes on the market and rising home values. It’s especially difficult for first-time homebuyers who may have smaller budgets and are unfamiliar with the complicated process of bidding, paperwork, and so much more.
To help make the search a little bit easier, Zillow compiled a list of the 10 best markets for first-time homebuyers based on five metrics: lower median home value, strong home value forecast, higher inventory-to-household ratio, shorter Breakeven Horizon (the number of years you have to live in a home to make it more affordable than renting the exact same house), and greater share of listings with price cuts. Orlando topped the list, with Tampa and Indianapolis rounding out the top three.
You won’t find popular locales like Seattle or San Francisco on this list. Although these cities have strong job markets, which might entice first-timers to relocate to those spots, buyers will encounter low inventory and high home prices. In the Bay Area, for example, home shoppers might end up paying as much as $70,000 or more on a down payment, compared to $40,000 on a home in Florida.
First-time homebuyers can also check out Zillow’s newest brand, RealEstate.com, which was created especially for newbies. The site features an “All-In Monthly Price,” which estimates how much the home will really cost you (including mortgage, property tax, and utilities).
“As millennials reach the typical home buying age, they are coming into a tough housing market with low inventory and lots of competition,” Zillow Chief Economist Dr. Svenja Gudell said in a press release. “These markets have more favorable conditions for first-time buyers to become homeowners. More challenging metros aren’t out of reach for new buyers, but they should be prepared to face a more competitive buying environment.”
Take a look at the top 10 cities below:
- Orlando, Florida
- Tampa, Florida
- Indianapolis, Indiana
- Las Vegas, Nevada
- San Antonio, Texas
- Pittsburgh, Pennsylvania
- Atlanta, Georgia
- Detroit, Michigan
- Dallas, Texas
- Cleveland, Ohio