First time home buyer? These markets are your best bet in 2025.
Klaman Census panelists Dolly Lenz and Jenny Lenz analyze the top places Americans want to live.
By all accounts, 2024 will be a tough year for those in the market to buy their first home, with home prices at record highs, higher interest rates, and rising insurance costs exacerbating America’s housing affordability crisis.
In fact, the share of first-time home buyers reached a historic low last year, accounting for only 24% of purchases.
The market has been tough for homebuyers, especially those looking to achieve the American dream for the first time. New study shows best places to buy in 2025 (Justin Sullivan/Getty Images/Getty Images)
Still, demand is high, so for those who still want to buy, Realtor.com has just released it Annual report Which cities offer the brightest opportunities for those ready to make the leap into home ownership — and have they changed from years past?
“The most affordable markets, especially first-time home buyers, are starting to skew more south,” Realtor.com senior economist Joel Berner told FOX Business.
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Last year’s ranking, the digital real estate group said, looked at more Northeast and Midwest markets, and this year it was three out of 10. Only in Florida.
“The Sun Belt has been a major focus point for buyers during the post-pandemic market with high temperatures, but as these southern markets cool down a bit, prices are improving as prices drop,” Berner explained.
Here are the best markets for first-time home buyers in 2025 based on a combination of home prices, availability of homes for sale and neighborhood quality.
1. Harrisburg, Pennsylvania – Median list price $140,000
Harrisburg is the capital of Pennsylvania. (iStock/iStock)
2. Rochester, New York – Median list price $129,900
3. Villas, Florida – Median list price $236,950
4. Lauderdale Lakes, Florida – Median list price $154,850
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5. Altamonte Springs, Florida – Median list price $229,400
6. Lansing, Michigan – Median list price $135,000
Aerial view of Lansing, Michigan (iStock/iStock)
7. North Little Rock, Arkansas – Median list price $160,000
8. Baltimore, Maryland – Median list price $210,000
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9. Tonawanda, New York – Median list price $229,900
10. Wilmington, Delaware – Median list price $222,000
View of the Wilmington Riverfront from the Russell Peterson Wildlife Refuge, Wilmington, Delaware (Bo Shen/iStock)
While these may be the best places to buy a first home this year, Realtor.com admits that the current affordability crunch in the US isn’t expected to go away anytime soon.
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“There will absolutely be affordability challenges in 2025,” Berner told FOX Business. “