Best And Worst Metro Areas For First-Time Buyers In 2024

Best And Worst Metro Areas For First-Time Buyers In 2024

Submitted by Sam Bourgi of CreditNews

The past few years have been one of the worst periods for first-time homebuyers in America’s history.

Record home prices, chronically low inventory, 22-year-high mortgage rates, and bidding wars with cash- and equity-flush buyers have locked many younger buyers out of the housing market.

According to the National Association of Realtors (NAR), first-time homebuyers made up just 32% of all transactions last year—the fourth lowest share seen in more than 40 years.

While would-be homeowners bide their time, Creditnews Research looked at America’s 50 largest metro areas to uncover housing markets that are still attractive for first-time buyers.

Our ranking shows how easy it is for residents in each metro area to buy a starter home—defined as homes with a sale value in the 5th to 35th percentile range purchased with a mortgage.

Primary factors in our scoring model include mortgage affordability, market access, and bargaining power. We also looked at macro indicators, such as employment growth and livability.

Combined, the weighted scoring model provides a holistic snapshot of America’s largest metro areas that offer first-time buyers the best bang for their buck.

Some of the results may surprise you.

Best metro areas for first-time buyers

Based on Creditnews Research’s scoring model, the top metro areas for first-time buyers are: