Beyond affordability, these 10 markets have
many attractive features for first-time buyers – from nearby
amenities to job opportunities
SANTA
CLARA, Calif., Jan. 18,
2023 /PRNewswire/ -- With affordability continuing to
be a big hurdle in 2023, first-time buyers may need to be flexible
in order to land a house in the coming year. To find the Best
Markets for First-time Homebuyers, Realtor.com® looked
at a number of qualities that make a town attractive, including
affordability, livability and where it might be easier for young
buyers to break into the housing market. The top 10 markets for
first-time homebuyers in 2023 are: Portsmouth, Va., DeForest, Wisc., Windsor Locks, Conn., Gloucester City, N.J., Moore, Okla., Magna,
Utah, Eggertsville, N.Y.,
Watervliet, N.Y., Mattydale, N.Y. and Somersworth, N.H.
What makes these towns great for first-time buyers? They have
strong job markets, short commute times, plenty of places to eat
and drink, a younger population, affordability, and more homes to
choose from.
"The housing market will continue to be challenging for
first-time buyers in the coming year, but for those with a bit of
flexibility in where they live, there are markets where young
buyers can find not just a relatively affordable home, but a
neighborhood that offers a mix of economic opportunity and
lifestyle amenities," said Realtor.com® Chief Economist
Danielle Hale. "Affordability is
always a consideration for first-time buyers, but it's also
important to make sure that you're settling down in a location that
has all the qualities that make it an enjoyable place to live –
after all, you're not just buying a house, you're investing in a
community."
This year's best markets have:
- More homes to choose from: With inventory still near
historic lows, having more homes to choose from can make a world of
difference. Realtor.com®'s best markets for first-time
homebuyers have an average of 47.8 listings per 1,000 households,
higher than the national rate of 45.2. Magna, Utah has the widest selection of
listings per household on this year's list.
- Short commutes: Typically, the farther from city
centers, the cheaper the homes, but no one wants to spend all day
commuting. This year's top towns have an average expected commute
time of just 24 minutes. This is significantly faster than the
national average of 30 minutes–it would save 50 hours per year for
a 5-day commuter. Those looking for an especially short commute
should check out Eggertsville,
N.Y., which has an average travel time of just 20
minutes.
- Options for food and drinks: Buying a house doesn't need
to mean giving up on a latte or an occasional meal out. The top
towns have an average of 5.6 food and drink establishments per
1,000 households in their metro area, higher than the national rate
of 5.3. Somersworth, N.H. topped
the list for proximity to restaurants.
- Younger residents: When it comes to picking a new
community, younger buyers are often drawn to younger towns. This
year's list has an average of 14.8% of residents in the 25-34 year
age category, compared to the national average of 13.4%.
Magna, Utah (which also made the
2022 list) tied Moore, Okla. as
the youngest markets on the list.
- Affordability: With high home prices and interest rates,
affordability is a key factor for first-time homebuyers. The best
markets offer an average 2022 listing price to income ratio of 3.5
for 25- 34 year-olds, much lower than the national rate of 5.1.
Mattydale, N.Y. and Gloucester City, N.J. tied for the most
affordable locations on the list.
- Strong housing markets: A home is an investment, and
this is especially true for first-time buyers who are likely
investing a large portion of their savings into a home. To help
best protect that investment, it's important to buy in a location
that has a strong local housing market and is likely to hold its
value, if not appreciate. This year's markets are located within
metro areas that have an average forecasted 2023 home sales growth
rate of 1.2%, higher than the national rate which is expected to
decline -14.1%. In terms of price growth, Somersworth, N.H. is located within the
Boston metro area which is
expected to have the highest growth in 2023 among the 10 places on
our list (+9.5%), followed closely by the Madison metro area
containing DeForest, Wisc.(+9.0%).
Realtor.com® 2023 Best Markets for First-Time
Homebuyers
Rank
|
Place
Name
|
Metro
Name
|
2023 Metro
Forecast
Rank
|
2023 Forecasted
25-34 Year Old
Population Share
|
12 Month Ending
November 2022
Inventory per
1,000 Households
|
12 Month Ending
November 2022
Price to Income
Ratio
|
2023 Forecasted
Metro
Unemployment
Rate (%)
|
2020 Food
and Drink
Establishments
per 1,000
Households
|
2023 Forecasted
Average Travel
Time to Work
|
2023 Metro
Forecasted
Price Growth
|
2023 Metro
Forecasted
Sales Growth
|
1
|
Portsmouth,
Va.
|
Virginia
Beach-Norfolk-Newport News, Va.-N.C.
|
21
|
15.9 %
|
58.8
|
3.9
|
3.4
|
5.5
|
25
|
5.1 %
|
3.9 %
|
2
|
DeForest,
Wisc.
|
Madison,
Wisc.
|
56
|
15.1 %
|
58.1
|
3.6
|
2.8
|
5.5
|
25
|
9.0 %
|
-5.0 %
|
3
|
Windsor Locks,
Conn.
|
Hartford-West
Hartford-East Hartford, Conn.
|
1
|
12.6 %
|
41.9
|
2.7
|
3.7
|
5.7
|
23
|
8.5 %
|
6.5 %
|
4
|
Gloucester City,
N.J.
|
Philadelphia-Camden-Wilmington,
Penn.-N.J.-Del.-Md.
|
43
|
13.6 %
|
62.3
|
2.2
|
3.7
|
5.6
|
25
|
5.7 %
|
0.6 %
|
5
|
Moore, Okla
|
Oklahoma City,
Okla
|
36
|
16.8 %
|
54.7
|
3.0
|
3.1
|
5.3
|
27
|
2.6 %
|
4.2 %
|
6
|
Magna, Utah
|
Salt Lake City,
Utah
|
73
|
16.8 %
|
73.7
|
5.1
|
2.4
|
5.6
|
27
|
5.8 %
|
-7.6 %
|
7
|
Eggertsville,
N.Y.
|
Buffalo-Cheektowaga-Niagara Falls, N.Y.
|
5
|
13.3 %
|
39.0
|
3.4
|
3.9
|
5.4
|
20
|
6.0 %
|
6.3 %
|
8
|
Watervliet,
N.Y.
|
Albany-Schenectady-Troy, N.Y.
|
28
|
15.9 %
|
18.3
|
4.0
|
3.3
|
5.8
|
22
|
4.7 %
|
3.0 %
|
9
|
Mattydale,
N.Y.
|
Syracuse,
N.Y.
|
33
|
12.9 %
|
40.9
|
2.2
|
3.6
|
5.3
|
21
|
6.1 %
|
0.9 %
|
10
|
Somersworth,
N.H.
|
Boston-Cambridge-Newton, Mass-N.H.
|
22
|
14.9 %
|
30.1
|
4.6
|
2.8
|
6.2
|
28
|
9.5 %
|
-0.6 %
|
|
USA
|
|
|
13.4 %
|
44.9
|
5.1
|
4.0
|
5.3
|
30
|
5.4 %
|
-14.1 %
|
Home shoppers can visit Realtor.com® to learn about
the process, see if they might be eligible for down payment
assistance and find out how much they can afford.
Realtor.com®'s Buying Power tool enables shoppers to
save their personal information to their profile, so each home
listing will show if it is "affordable," "a stretch," "difficult"
or "out of reach" based on a shopper's specific budget.
Methodology
Realtor.com® ranked towns with
an expected 2023 population of at least 5,000 residents. The
inventory of homes for sale and local median listing prices are
from Realtor.com® December
2021 to November 2022 listing
data and are reported at the city/place level. The cities and
places are defined as postal codes mapped to Census Designated
places and reflect approximate but not precise city or place
boundaries. The population, household count, household income, and
average commute time data were sourced from 2022 and 2023 Claritas
estimates based on Census Bureau data. Population and household
count numbers are at the city/place level but are also composed of
mapped zip code data while household incomes and average commute
times at the city/place level. The stated forecasted unemployment
rates are Moody's Analytics projections of U.S. Bureau of Labor
Statistics Local Area Unemployment Statistics for each city/place's
surrounding metro area. Counts of food and beverage establishments
are from 2020 County Business Patterns data and are also reported
at the metro-level. The 2023 sales and price forecasts are
Realtor.com® projections for each city/place's
surrounding metro area as detailed in our 2023 Housing
Forecast and Top Housing Markets for 2023 reports.
About
Realtor.com®
Realtor.com® is an
open real estate marketplace built for everyone.
Realtor.com® pioneered the world of digital real
estate more than 25 years ago. Today, through its website and
mobile apps, Realtor.com® is a trusted guide for
consumers, empowering more people to find their way home by
breaking down barriers, helping them make the right connections,
and creating confidence through expert insights and guidance. For
professionals, Realtor.com® is a trusted partner
for business growth, offering consumer connections and branding
solutions that help them succeed in today's on-demand world.
Realtor.com® is operated by News Corp [Nasdaq:
NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. For more
information, visit Realtor.com®.
CONTACT: press@realtor.com
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