Top 10 Markets for First-Time Home Buyers

Much like 2022, 2023 has been a very challenging year for first-time home buyers. According to the National Association of Realtors (NAR), first-time home buyers make up 26% of all home buyers, down from 34% last year. High home prices, rising mortgage rates, and low inventory have made finding and purchasing a new home difficult. But in some markets in the U.S., finding your dream home is easier than in others. The Realtor.com 2023 National Housing Forecast selected ten attractive markets for first-time home buyers. Their criteria included the following:

• The number of 25-34-year-olds in the population.
• The inventory of homes for sale.
• The affordability of the homes, based on active listings per 1000 existing households.
• The number of available jobs, estimated by the forecasted unemployment rate of the surrounding metro area.
• The average work commute time.
• The area’s available amenities, estimated by the number of food and drink establishments per 1000 households.
• Estimated metro home sales and home price growth for 2023.

Based on these criteria, Realtor.com selected the following as the Top 10 Markets for First-Time Home Buyers for 2023:

1. Portsmouth, VA
2. DeForest, WI
3. Windsor Locks, CT
4. Gloucester City, NJ
5. Moore, OK
6. Magna, UT
7. Eggertsville, NY
8. Watervliet, NY
9. Mattydale, NY
10. Somersworth, NH

Some highlights of the forecast:

• Moore, OK, and Magna, UT, have the highest % of young adults (25–34-year-olds) at 16.8%, respectively.
• The market with the most active listings is Magna UT, with 73.7 listings per 1,000 households.
• The most affordable homes are in Mattydale, NY, and Gloucester City, NJ.
• Magna, UT, has the lowest unemployment rate, with 2.4%
• The lowest commute time is Eggertsville, NY, with a 20-minute average commute time to work.
• Somersworth, NH, has the best amenities, with the highest number of food and drink establishments per household.
• The highest expected sales growth can be found in Windsor Locks, CT, with a rate of 6.5%.

If you are a first-time home buyer, here are some resources to help you. Or you can call one of the experts at NASB at 855-465-0753.