Top 10 Cities for First-Time Home Buyers in 2024

First-time homebuyers are homeowner-occupants who purchased a new home and did not own one the previous year. Prior-year first-time homeowners are a growing trend, as Zillow reported that they comprised 50% of all homebuyers last year, according to the Consumer Housing Trends Report for 2024. As homeownership has its unique challenges depending on the location, here are the top 10 best metros for purchasing starter homes.

Shopping for a home is even more challenging than it was a decade ago because of the affordability problems of today's housing market, especially for boot-strap first-time homebuyers with no home purchase equity to bring to the table. Special considerations relating to Zillow's selection include the cost of assaying rent, the variety of housing inventory, and the competitiveness of entry-level homes. These metrics pinpoint areas offering optimal conditions for aspiring homeowners to enter the market more efficiently.

St Louis, MO

St. Louis emerges as a favorable market, with 26% of households representing first-time home buyers. Rent consumes 20% of the median household income, and a robust 67% of homes listed are deemed affordable, translating to 3.4 affordable listings per 100 renters.

Detroit, MI

Detroit follows closely, boasting 24% of households as home buyers. Rent affordability is 21% of median household income, with 64% of homes listed within reach for buyers, equating to 4 affordable listings per 100 renters.

Minneapolis, MN

On the bright side, Minneapolis presents higher opportunities, as 28% of households are jumping right into homeownership. Overall, this means that rent is relatively reasonable at 20% of median household income, and 48% of current listings are affordable; therefore, the score is 2. Five affordable homes per 100 renters is the reality today.

Indianapolis, IN

Indianapolis performs well within the index, where 29% of the households own homes. Existing rent is twenty-two percent of the median income, and fifty percent of the houses stated are listed and available for low-income people and offer two. For every 100 renters, six affordable listings.

Austin, TX

Austin maintains strong appeal, with 34% of households buying homes. Rent expenses account for 20% of median household income, although only 23% of listings are affordable, translating to 1.3 affordable homes per 100 renters.

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Pittsburgh, PA

Pittsburgh showcases a robust market, with 24% of households entering homeownership. Rent takes up 22% of median household income, and 63% of homes listed are affordable, offering 3.7 affordable listings per 100 renters.

San Antonio, TX

The number of families from all persons owning a home increased, with San Antonio having the highest rating at 31%. Housing costs are 3 percent of median gross income; 33 percent of the listings are affordable, and this gets. It stipulates that only 6% of rent-paying households should be able to afford to own a home for every 100 renters.

Birmingham, AL

Birmingham presents a favorable environment, with 25% of households purchasing homes. Rent costs 22% of the median household income, and 47% of homes listed are affordable, offering 4.2 affordable listings per 100 renters.

Kansas City, MO

Kansas City offers opportunities, with 27% of households buying homes. Rent takes up 21% of median household income, and 51% of listings are affordable, providing 2.2 homes per 100 renters.

Baltimore, MD

Baltimore rounds out the top markets, with 27% of households venturing into homeownership. The spending ratio on rent is 22% of the median household income, and half of the homes on the listing are in the affordable price range, providing 2. They have to get three affordable listings for every single hundred renters 

These markets are some of the best places for first-time homeownership, addressing the barriers to entry into homeownership and indicating affordability and accessibility. With changes occurring in the housing sector, the above cities remain the most suitable places for young people to build their homes, following the prevailing achievable tenets.

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