5 Locations With the Best Quality of Life for First-Time Homebuyers
Becoming a first-time homebuyer has been very difficult for many Americans in the past year. Soaring rates, low inventory and high prices have left many of them waiting for an opportunity.
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Yet, lately, the housing market has shown signs of picking up. Indeed, Realtor.com found that seller activity has increased, which in turn promises more options to home shoppers.
In addition, homebuyers are feeling increasingly optimistic — according to a recent Realtor.com survey — and despite a still-challenging market, buyers are starting to see some relief.
“The housing market has become increasingly unaffordable to all buyers, and especially to first-time homebuyers, over the last few years,” said Hannah Jones, senior economic research analyst for Realtor.com.
As a result, she said that home shoppers are looking for locales which offer both affordability and amenities that boost overall quality of life.
“These top spots offer a price point that is relatively accessible to first-time buyers, along with desirable lifestyle benefits and proximity to economic hubs, making them appealing prospects in an otherwise untenable market,” added Jones.
Some U.S. markets, such as those on Realtor.com’s “2024 Best Markets for First-Time Homebuyers” list, offer would-be homeowners both affordability and desirability amid a shifting housing landscape.
Here are the top five best locations for first-time homebuyers, per the list.
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Irondequoit, New York
Jones said that Irondequoit boasts a large share of young households as well as low home prices — both relative to the U.S. as a whole and to local incomes.
“Located on Lake Ontario, Irondequoit offers first-time buyers favorable housing conditions as well as recreational activities nearby without sacrificing access to urban amenities in Rochester,” Jones said.
Bentonville, Arkansas
Buyers in Bentonville will have plenty of affordable homes to choose from. Inventory levels are high in the area and the median listing price is well below the national level, according to Jones.
“It’s home to the Walmart headquarters which means that job opportunities and economic growth abound,” she said. “Nearby to the Ozark mountains, Bentonville offers both economic stability and access to picturesque nature.”
Winterset, Iowa
Winterset offers first-time buyers plenty of affordable housing options and a quick commute to Des Moines, per Jones. She added that it has the charm of a small town and a tight-knit community, which is valuable to many first-time buyers looking to put down roots.
Newington, Connecticut
“Newington boasts a young population and affordability in the larger Hartford area,” said Jones. It is located on the south side of Hartford, and is a short trip away from central Hartford, giving residents a suburban feel without limiting access to urban amenities, she added.
Council Bluffs, Iowa
“First-time buyers can find low-priced inventory in Council Bluffs without sacrificing a quick commute time to the city center,” said Jones, adding that it’s located just across the Missouri River from Omaha, Nebraska, and offers buyers affordability without sacrificing access to employment opportunities.
“Council Bluffs is home to Lake Manawa State Park as well as the Wabash Trace Nature Trail, making it a great homebase for nature lovers,” she added.
What Are the Top Difficulties for First-Time Homebuyers in This Market?
As Jones explained, saving for a down payment and affording a monthly payment have both become more challenging as home prices have risen faster than wages over the last few years. In turn, the above locations are both more affordable than the national median — and tend to be affordable relative to local incomes.
In addition, an issue that’s been lingering for some time is that inventory levels remain low relative to the pre-pandemic era across the nation. As a result, first-time homebuyers see more competition for inventory in their price range as relatively low-priced listings are few and far between.
“The few affordable listings that come on the market tend to sell quickly, leading to more competition and price growth,” she said. “Most of the best first-time homebuyer markets fare better than the national market in terms of active inventory per household, meaning buyers may have more options to choose from.”
And offering a glimmer of hope in terms of a slow easing of the market, Jones said she expected the housing market to start to turn a corner in 2024.
“Though the year will not likely bring a full return to affordability, we expect easing mortgage rates and home prices to relieve some of the affordability strain on buyers,” she said.
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