12 Best Cities for First-Time Homebuyers
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In 2022, home purchases by first-time buyers shrank to 26%, down from 34% the previous year, in part because of surging prices, according to the National Association of Realtors. The age of a typical first-time buyer rose to 36, a record.
In a new report, the personal finance website WalletHub says those who are willing and have the means to invest in a house this year must balance what they want and need with what they can afford. They have to be realistic about market prices, interest rates and mortgage eligibility.
Location is an important consideration, as well. To determine the most favorable housing markets for first-time buyers, WalletHub compared a sample of 300 U.S. cities of varying sizes across three key dimensions:
Affordability, including average cost of homeowner’s insurance, cost of living and real estate tax rate
Real estate market, including median days on the market, active listings per capita and homeownership rate for millennials
Quality of life, including job market, quality of school system and weather
Researchers evaluated those dimensions using 22 relevant metrics, and graded each one on a 100-point scale, with a score of 100 representing the most favorable conditions for first-time home buyers.
See the gallery for the 12 best places for first-time homebuyers.
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