Similar to 2022, 2023 was a very challenging year for first-time home buyers. According to Bankrate, first-time home buyers comprised 32% of all home buyers, down from the 38% average and the fourth-lowest share in over 40 years. High home prices, rising mortgage rates, and low inventory have made finding and purchasing a new home difficult. But in some markets in the U.S., finding your dream home is easier than in others. The Realtor.com 2024 National Housing Forecast selected ten attractive markets for first-time home buyers. Their criteria included the following:
- The number of 25-34-year-olds in the population.
- The inventory of homes for sale.
- The affordability of the homes is based on active listings per 1000 existing households.
- The forecasted unemployment rate of the surrounding metro area estimates the number of available jobs.
- The average work commute time.
- The area’s amenities are estimated by the number of food and drink establishments per 1000 households.
- Estimated metro home sales and home price growth for 2024.
Based on these criteria, Realtor.com selected the following as the Top 10 Markets for First-Time Home Buyers for 2024:
- Irondequoit, NY
- Benton, AR
- Winterset, IA
- Newington, CT
- Council Bluffs, IA
- Cheektowaga, NY
- Grand Rapids, MI
- Moore, OK
- Mattydale, NY
- Riviera Beach, MD
Some highlights of the forecast:
- The top markets have an average estimated 2024 25 to 34-year-old homeowner share of households of 8.1%, compared to 5.4% for the overall list of cities and towns and 5.4% nationally.
- In 2023, the average number of active listings for the top markets as a group per 1,000 existing households was 40.2, slightly lower than the list average of 40.5 but higher than the national rate of 38.6.
- The 2023 listing price for the top markets as a group has a 25- to 34-year-old income ratio of 3.1, lower than the city/town average of 5.8 and the national rate of 5.4. Magna, UT, has the lowest unemployment rate, with 2.4%.
- The top markets are located within metro areas, with an average forecasted 2024 unemployment rate of 3.6%, lower than the town/city average of 4.2% and the projected national rate of 4.2%. Somersworth, NH, has the best amenities and the highest number of food and drink establishments per household.
- The top cities' average expected 2024 commute time is 24 minutes, less than the city/town average of 30 minutes and the national rate of 29 minutes.
If you are a first-time home buyer, here are some resources to help you. You can also call one of the experts at NASB at 888-661-1982.
