Buying a first home is an exciting and daunting experience. But despite recent corrections, home prices remain expensive. Of the 100 largest U.S. cities, a mere three have more than 50% of homes at or below the price point achievable for an average buyer.
Knowing where to start looking for potential homes is critical since every market has its own dynamics regarding real estate prices, supply and demand conditions and amenities.
The Top 10 Markets For New Home Buyers
Realtor.com created a list of the 10 most desirable markets this year based on factors such as population size, housing availability, median listing prices, recreational facilities and job opportunities.
These spots are geared towards younger customers and provide plenty of restaurants and bars, reasonable pricing options, access to efficient transportation routes and reliable real estate markets. This lets buyers acquire value for their money.
These are the 10 best housing markets for first-time home buyers in 2023:
- Portsmouth, Virginia
- DeForest, Wisconsin
- Windsor Locks, Connecticut
- Gloucester City, New Jersey
- Moore, Oklahoma
- Magna, Utah
- Eggertsville, New York
- Watervliet, New York
- Mattydale, New York
- Somersworth, New Hampshire
Why Some Housing Markets Are More Affordable Than Others
Affordable housing is a significant issue for many people in the U.S., with costs of living rising so much. But why do some housing markets have more affordable options than others?
Areas with higher population density tend to have higher rents and home prices due to the increased demand for housing. On the other hand, areas with lower population density may have more affordable housing options due to less competition for limited resources.
Another factor that affects affordability is the local economy. Areas with strong economies tend to have higher wages and job opportunities, which can make it easier for people to afford housing. Conversely, areas with weaker economies may struggle with unemployment and low wages, making it harder for people to afford rent or a mortgage payment.
Finally, government policies play a role in determining affordability in certain markets. For example, some cities offer tax incentives or subsidies to encourage developers to build more affordable housing units. This helps create more options for those who cannot afford market-rate rents or mortgages.
Other Factors That Make An Area Desirable
While affordability may be top of mind for many people looking for new homes, the best markets for younger, first-time homebuyers also share several other characteristics.
“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,” Realtor.com Chief Economist Danielle Hale said in a statement, “After all, you’re not just buying a house, you’re investing in a community.”
Realtor.com says the top markets for 2023 also feature the following:
- A broader inventory of available homes.
- Commutes of less than 30 minutes.
- Proximity to restaurants and bars.
- More residents in the 25-34 year age category.
- Strong housing markets.
Hale notes that the housing market will continue to be challenging in 2023.
“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,” she said.