12 Worst Metro Areas for First-Time Homebuyers

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Housing affordability, a prime concern of first-time homebuyers, has fallen to an all-time following last year’s spike in mortgage rates and continuing high home prices, according to a recent report from Bankrate.com.

One recourse for people making their first foray into the housing market is to move to a more favorable location. In newly released research, Bankrate ranked the 50 largest metro areas in the U.S. for first-time homebuyers. The best ones offer an enticing combination of affordable real estate, a robust job market and high marks for wellness and cultural amenities.

In contrast, the cities at the bottom of the list deflect budget-minded shoppers with steep home prices and tight housing markets, even as several offer top-notch amenities.

Bankrate evaluated each metro area across four main factors, drawing data from a variety of sources. Researchers gave a 40% rating to affordability, which includes income needed by 25- to 40-year-olds to qualify for a mortgage in each area and the Cost of Living Index in that area as of the second quarter of 2022.

They gave 30% weighting to each area’s job market ranking: the unemployment rate as of August and the year-over-year change in employed residents. This factor also includes each area’s commute time, per 2021 U.S. Census data.

Housing market tightness, which accorded a 15% weighting, is based on Realtor.com’s median days on the market statistic for home sales in December, as well as the year-over-year change in housing inventory through December.

Finally, researchers gave 15% weight to wellness and culture, which includes measures of each metro area’s access to health care, food and community services; racial diversity and representation; and a culture ranking based on the number of arts, entertainment and recreation establishments per capita.

See the gallery for the 12 worst metro areas for buyers making their first foray into the housing market, according to Bankrate.

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