Affordability issues in today’s housing market make it especially challenging for first-time homebuyers. But there are some markets where the market is easier to break into, where there are more affordable options and there's less competition for starter homes.
First-time buyers made up half of all homebuyers in 2023, according to Zillow’s Consumer Housing Trends Report, and Zillow has identified which markets offer the greatest opportunity for first-time buyers in 2024. The list is based on four metrics: rent affordability; share of available inventory on Zillow that the median household can comfortably afford (that is, no more than 30% of household income spent on the estimated monthly mortgage costs); the ratio of affordable for-sale inventory to renter households; and the share of households ages 29 to 43 (more households of similar age means a higher score in the rankings).
These are Zillow’s 10 best markets for first-time home buyers this year:
- St Louis, MO
- Home Buying Age Households As a Share of Total Households: 26%
- Percentage of Median Household Income Spent on Rent: 20%
- Affordable Listings As a Percent of Total For-Sale Inventory: 67%
- Affordable Listings To Renter Household Ratio: 3.4 per 100 Renters
- Detroit, MI
- Home Buying Age Households As a Share of Total Households: 24%
- Percentage of Median Household Income Spent on Rent: 21%
- Affordable Listings As a Percent of Total For-Sale Inventory: 64%
- Affordable Listings To Renter Household Ratio: 4 per 100 Renters
- Minneapolis, MN
- Home Buying Age Households As a Share of Total Households: 28%
- Percentage of Median Household Income Spent on Rent: 20%
- Affordable Listings As a Percent of Total For-Sale Inventory: 48%
- Affordable Listings To Renter Household Ratio: 2.5 per 100 Renters
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