First-time homebuyers are entering the market at a difficult time. Mortgage rates are set to rise, limited inventory is contributing to rising average home sale prices and more affordably priced homes make up a scant 12.8% of the total U.S. real estate market's value, according to an analysis by Zillow.
Realtor.com ranked the 10 best suburbs ideal for first-time home buyers. The markets, all with populations under 100,000 people and within a 30-minutes’ drive to a larger metro, feature strong job markets, easy access to entertainment and affordability rivaling nearby cities and towns.
“The fact that remote work has given people more flexibility in where they live, we wanted to identify markets where first timers have a chance to become homeowners and find a great quality of life,” Realtor.com Chief Economist Danielle Hale said in the report.
Realtor.com’s report analyzed 1,112 cities and looked at their share of 25-34 year-old resident; the number of active listings per 1,000 existing households; job opportunities based on the local unemployment rate; the number of amenities based on food and drink establishments per 1,000 households; and forecasted metro home sales and home price growth in 2022. Mortgage and real estate experts from markets across the country told National Mortgage News what makes these suburbs the ideal spot for first-time homebuyers.