First-time homebuyers are becoming older and rarer as homeownership remains out of reach for many younger Americans. Yet, a handful of markets stand out as good options for first-time buyers, offering affordability and favorable local economic conditions, according to Realtor.com’s latest analysis.
Rochester, New York, tops the ranking as the most affordable market. With a median listing price of $139,900 and a median income of $48,617 for buyers aged 25 to 34, mortgage payments there account for just 19.1% of earnings. Other Northeastern cities also made the list, including Harrisburg, Pennsylvania, where young buyers spend roughly 19.7% of their $51,285 median income on a $151,999 home and Syracuse, New York, where the share rises slightly to 22% for a median $169,900 listing.
Midwestern markets offer some of the strongest affordability. Granite City, Illinois, carries the lowest mortgage-to-income ratio among the top 10 at 12.6%, helped by modest home prices of $119,000 and median incomes of $62,621. Garfield Heights, Ohio, ranks 17.2% at $140,000 for the median home price.
Southern cities round out the top 10 while remaining competitive. Birmingham, Alabama, features a median-priced home of $148,950, with mortgage payments consuming about 20.8% of a $47,647 median income. North Little Rock, Arkansas, comes in at 21.2% on a $170,000 home.
Higher-priced markets still made the top 10 but remain manageable for younger buyers. Baltimore and Pittsburgh see mortgage payments near 23.6% of median incomes of $62,982 and $70,226, respectively. St. Louis Park, Minnesota, has the highest cost among the group, with buyers spending 25.4% of the $98,036 median income on a $375,000 home.
Realtor.com noted that these affordable markets are concentrated in both cities and suburbs across the eastern half of the country. The Western United States is absent from the list for the second consecutive year, as home prices remain high despite proportionally lower incomes and inventory growth, which has muted prospects for strong price appreciation.
Affordability remains rare nationwide, the study said. Only 35.2% of the markets considered meet the common rule, where no more than 30% of income should go toward housing.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.