Looking to buy your first home? These markets are your best bet in 2025
By all accounts, 2024 was a rough year for folks in the market to purchase their first house, with home prices at record highs, elevated interest rates, and soaring insurance costs all worsening America's housing affordability crisis.
In fact, the share of first-time homebuyers hit a historic low last year, accounting for only 24% of purchases.
Still, demand is high, so for those still looking to make a buy, Realtor.com recently released its annual report on which cities offer the brightest opportunities for those ready to take the leap into homeownership – and there have been shifts from years past.
"The more affordable markets, especially for first-time home buyers, are starting to skew more Southern," Realtor.com senior economist Joel Berner told FOX Business.
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He said that in last year's rankings, the digital real estate group saw more Northeastern and Midwestern markets in the mix, while this year, three of the top 10 were in Florida alone.
"The Sun Belt was a major focus point for buyers during the overheated post-pandemic market, but as these Southern markets cool a bit, affordability is improving because of flat-to-falling listing prices there," Berner explained.
Here are the best markets for first-time homebuyers in 2025, in terms of the combination of the cost of housing, availability of homes for sale, and quality of the location:
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While these might be the best places to purchase a first home this year, Realtor.com acknowledges that the current affordability crisis in the U.S. is not expected to disappear any time soon.
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"There will absolutely be affordability challenges in 2025," Berner told FOX Business. "Our best affordability hopes for 2025 are to see increased inventory, especially of smaller and more affordable homes, as builders respond to demand for affordable housing and homeowners who currently live in affordable homes make the move to upgrade."