Realtor.com Ranks Best Markets for First Time Homebuyers

Realtor.com, Santa Clara, Calif., released an analysis of the 10 best markets for first-time homebuyers, with a focus on affordability, availability and amenities.

Coming in at the top of the list was Rochester, N.Y., followed by Harrisburg, Pa., Granite City, Ill., Birmingham, Ala., and North Little Rock, Ark.

Rounding out the top 10 were Syracuse, N.Y., Baltimore, St Louis Park, Minn., Pittsburgh and Garfield Heights, Ohio.

Some of these markets were also on last year’s list of the best markets for first-time homebuyers. Harrisburg took the top spot then, followed by Rochester.

It’s the second year in a row that none of the markets on the list are in the West. Many markets in the regions have higher home prices without proportionally higher incomes.

In terms of commonalities, all 10 markets have median listing prices below the national median and below the median for their metro areas.

In each of the top 10 markets, the median-priced home is affordable to the median-earning young professional considering the general benchmark that a monthly mortgage payment shouldn’t constitute more than 30% of the buyer’s monthly income. For example, Rochester, N.Y., has a median listing price of $139,900, with a median income for 25-to-34-year-olds of $48,617. That means the median buyer would pay 19.1% of their monthly income on their mortgage payment.

“Truly affordable markets have become harder to find, especially for younger households,” said Joel Berner, senior economist at Realtor.com. “The places that rise to the top in this ranking are notable precisely because they still offer a viable path to ownership for first-time buyers.”

Factors considered by Realtor.com including affordability, local amenities, housing availability, the number of young peers in the community, commute quality and time, economic health of the area and housing outlook.