PR Newswire
These places offer the best mix of affordability and selection, and are seeing a higher share of price cuts
-
Wichita, Kansas
, is the No. 1 metro in the country for first-time home buyers. -
Six metros in the
Midwest
, including in
Kansas
,
Ohio
,
Michigan
and
Missouri
, are among the top 10. - First-time buyers now represent 45% of all buyers, up from 37% last year and in line with the pre-pandemic share.
SEATTLE
,
Dec. 7, 2022
/PRNewswire/ — As the share of buyers purchasing a home for the first time
rebounds to pre-pandemic levels
amid a changing market,
a new
Zillow
analysis
rates
Wichita, Kansas
, as the top area in America for potential first-time home buyers.
Zillow ranked U.S. metros based on factors that included mortgage and rent affordability for first-time home buyers, available homes for sale and the share of listings with a price cut.
“Although housing affordability is extremely challenging these days, some markets will be more hospitable than others for first-time home buyers,” said Zillow senior economist Orphe Divounguy. “These metros are potential hotbeds for those looking to buy their first home. Not only will shoppers find more affordable monthly mortgage costs and have an easier time qualifying for a smaller loan, but rent also is more affordable than elsewhere in the country, shortening the time it takes to save for a down payment.”
Top 10 best metros for first-time home buyers
-
Wichita, KS
-
Toledo, OH
-
Syracuse, NY
-
Akron, OH
-
Cleveland, OH
-
Tulsa, OK
-
Detroit, MI
-
Pittsburgh, PA
-
St. Louis, MO
-
Little Rock, AR
Wichita
, the largest metro in
Kansas
, landed the top spot largely because of its relative affordability — it’s among the top metros where people spend the smallest share of their income on rent and mortgage costs. And it has a higher share of for-sale listings relative to active shoppers, which means more options and bargaining power for potential home buyers.
Wichita
home shoppers can also find a number of deals popping up, with 22% of listings seeing a price cut in October.
Three
Ohio
metros —
Toledo
,
Akron
and
Cleveland
— are also among the top 10.
Detroit
is the largest metro in the top 10, ranking as the nation’s 12th largest.
St. Louis
(18th) and
Pittsburgh
(22nd) also are on the list and are among the nation’s 30 largest metros.
Wichita
rose to the top for similar reasons earlier this year when Zillow
analyzed
the best metros for single renters. Areas with more affordable housing, such as in the Midwest and Great Lakes regions, should see relatively healthier markets and stronger sales in 2023 when compared to other U.S. markets.
“Affordability remains the No. 1 challenge for first-time home buyers,” said
Amanda Pendleton
, Zillow’s home trends expert. “If they can overcome that significant hurdle, aspiring buyers have a better chance of landing a home than they’ve had in several years. They have more options, more time to decide and more negotiating power, meaning they may be able to land their dream home at a discount.”
As the market continues to change amid a high-interest-rate environment, Zillow has gathered tools on one easy-to-navigate
web page
that can help aspiring first-time buyers make the leap to homeownership.
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Methodology
The Zillow Best Markets for First-Time Home Buyers index captures the extent to which housing market conditions are supportive of home-buying activity, particularly for first-time home buyers. The index employs four variables: mortgage affordability; rent affordability; the inventory-to-buyer ratio, which indicates available supply; and the share of listings with a price cut. Since affordability is the biggest challenge facing the housing market today, the index weighs the affordability metrics more heavily than the other two components. Lower rent shortens the time it takes to save for a down payment. A larger share of listings with a price cut and a higher number of active for-sale listings relative to the number of active shoppers mean more options and greater bargaining power for potential home buyers in those markets.
About Zillow Group
Zillow Group, Inc. (NASDAQ: Z and ZG) is reimagining real estate to make it easier to unlock life’s next chapter. As the most visited real estate website in
the United States
, Zillow® and its affiliates offer customers an on-demand experience for selling, buying, renting, or financing with transparency and ease.
Zillow Group’s affiliates and subsidiaries include Zillow®; Zillow Premier Agent®; Zillow Home Loans™; Zillow Closing Services™; Trulia®; Out East®; StreetEasy®; HotPads®; and ShowingTime+™, which houses ShowingTime®, Bridge Interactive®, and dotloop®. Zillow Home Loans, LLC is an Equal Housing Lender, NMLS #10287 (
www.nmlsconsumeraccess.org
).
1
Based on
October 2022
data
View original content to download multimedia:
https://www.prnewswire.com/news-releases/zillow-names-the-10-best-metros-for-first-time-home-buyers-in-2023-301696933.html
SOURCE Zillow
