SANTA CLARA, Calif.,
Jan. 10, 2022 /PRNewswire/
-- With 2022 shaping up to be another challenging year for
hopeful homebuyers, Realtor.com® ran the numbers to find
the best markets for people looking to buy their first home this
year. The first annual Best Markets for First-Time Homebuyers
Report predicts the cities and towns with the best combination of
quality of life and affordability that young homebuyers are looking
for.
What is it that makes these markets great for first-time
homebuyers? They have strong job markets, short commute times,
plenty of places to eat and drink, a younger population,
affordability, and more homes to choose from. The 2022 top 10
markets, in ranked order, are: Magna,
Utah, Chalco, Neb., Mauldin, S. C., Beech Grove, Ind., Portsmouth, Va., Cottage Grove, Wis., Grimes, Iowa, Kuna,
Idaho, Ferndale, Mich. and
Maitland, Fla.
"Buying a first-home is always a challenging undertaking, and
it's been an especially tough couple years for first-time buyers,
many of whom are struggling to find a home that's within their
budget or win in a competitive bidding situation," said
Realtor.com® Chief Economist Danielle Hale. "With this in mind, and the fact
that remote work has given people more flexibility in where they
live, we wanted to identify markets where first timers have a
chance to become homeowners and find a great quality of life."
Here are some of the reasons these markets are attractive to
first-time homebuyers:
- More homes to choose from – The best markets boast
almost twice the number of homes for sale than the national
average, in 2021 these markets had 72.9 active listings per 1,000
households compared to the national rate of 44.9. Buyers looking
for lots of options should check out Kuna, Idaho, which has the most choice on the
list with 160 active listings per 1,000 households.
- Lots of young people – The 10 best markets for
first-time homebuyers all have a younger population than the
country overall. Specifically, these areas have an average of 15.2%
of residents who are between the ages of 25-34 years old compared
to 13.5% of the country overall. The youngest city on the list is
Maitland, Fla. where you'll find
that 17.5% of the population are young adults.
- Plenty to eat and drink – Lifestyle is important to a
lot of first-time homebuyers and the best markets also include
plenty of options for a night out on the town nearby. Our top
places for first time homebuyers are located in metros that have an
average of 5.3 food and drink establishments per 1,000 households
in the broader metro area, higher than other affordable places on
our list, which average 5.0. Foodies can head to Magna in the Salt
Lake City metro area, which has the most spots to dine out
or grab a drink at 5.8 per 1,000 households.
- More affordable homes – Sticking to a budget can be
tricky for many first-time homebuyers, but the best markets have
options for the cost-conscious. By comparing the typical home list
price to the average income for young adults,
Realtor.com® determined that the home-price-to-income
ratio in the best markets (3.9) was much lower than the national
rate (5.0). Home shoppers who are looking for affordability can
head to Chalco, Neb. or Ferndale,
Mich., which offer the most affordability on the list.
- Lots of good jobs – A healthy job market is important
when finding a place to settle down, and the best markets are in
metro areas that have lots of jobs to offer. These metro areas have
a forecasted unemployment rate of just 2.7%, well below the
national average of 3.6%. If job selection is at the top of the
wish-list, buyers can check out Chalco, Neb. in the Omaha metro area and Cottage Grove, Wis. in the Madison metro area which both have a
forecasted unemployment rate of just 2.2%.
- Strong local housing markets – All of the cities on the
list are located within metro areas that are forecasted to have
strong home sales and price growth. Sales in these surrounding
metro areas are projected to grow at 10.2% in 2022, much faster
than the national average of 6.6%. Prices are expected to rise by
5.4%, which is significantly higher than the national average rate
of 2.9%. Magna, Utah, which is in
the Salt Lake City metro, has the
highest expected sales growth rate of 15.2% and the highest
expected price growth of 8.5%.
- Shorter commutes – No one
wants to spend hours a day in the car or on a train, and the best
markets offer jobs that are close to home. In fact, the average
commute time in these markets is 26 minutes – that's 4 minutes
faster than the national average. If you're looking for a short
commute, try Grimes, Iowa, where
locals typically get to work in just 23 minutes.
First-time homebuyers can visit Realtor.com® to learn
more about the buying process, find out how much they can afford,
and even get connected to a lender to get pre-approved for a
mortgage. And to stay competitive in this fast-moving market,
shoppers can set a price alert so they know as soon as a home that
fits their wish list hits the market and use
Realtor.com®'s collaborate and share features to quickly
get feedback from friends and family.
Realtor.com® 2022 10 Best Markets for First-Time
Homebuyers:
- Magna, Utah
Coming in at No. 1, Magna,
Utah is located near Salt Lake
City, which was named Realtor.com®'s No. 1 Top
Market for 2022. Magna's easy
access to the lakes and mountains are a huge draw for outdoor
enthusiasts and its close proximity to the city offers lots of jobs
without a long commute. New home construction is booming in
Magna, providing more options for
home shoppers. The area has a fast-growing tech industry and is
also an attractive destination for nature lovers who have the
ability to work remotely. As such, it has seen a large influx of
out-of-state transplants since the pandemic began.
- Chalco, Neb.
In the No. 2 spot, Chalco, Neb., is located just outside of
Omaha. The Omaha area is home to 4 Fortune 500 companies
including Berkshire-Hathaway, offering lots of job opportunities.
Locals enjoy leisure time at the Chalco Hills Recreation Area, a
popular destination for hiking, biking and kayaking. There are also
9 universities and colleges in the area, including University of Nebraska Omaha and Creighton University.
- Mauldin, S. C.
At No. 3 on the list is Mauldin,
South Carolina, where first-time buyers will find small town
southern charm and natural attractions combined with a short
commute to Greenville's downtown
area, airport and strong jobs market. Residents have plenty to do
in Mauldin itself, from its Sports
and Cultural Centers to a booming restaurant scene, including local
favorites Wholly Smoke BBQ and Dillard's Ice Cream. For young
families, Mauldin also has
top-rated schools like Monarch Elementary.
- Beech Grove, Ind.
Landing at the No. 4 spot is Beech Grove, Ind. Known for a strong sense of
community, Beech Grove is a city
in its own right – literally – as the market is an "excluded city"
with a separate government and police department from the nearby
Indianapolis metro area. Home
shoppers looking for a sense of nightlife will find plenty of
restaurants in the Main Street downtown area, 24/7 bowling at Beech
Grove Bowl and local craft breweries like Scarlet Grove. For families, Beech Grove has good public schools like
Acton Elementary, as well as
top-rated private schools, including Cathedral High.
- Portsmouth, Va.
Taking the No. 5 place on the list is Portsmouth, Va. Located just across the
Elizabeth River from Norfolk, Va.,
this little town offers affordable home prices at $215,000 – well below the national average of
$332,000 – and is within driving
distance of a variety of outdoor activities such as water sports,
boating, skiing, snowboarding, and hiking. Home to the Norfolk
Naval Shipyard and The U.S. Coastguard Portsmouth, it has a large military population
and offers many job opportunities in defense and related
industries. Norfolk Southern and NASA Langley Research Center are
two big employers in the area.
- Cottage Grove, Wis.
The sixth best market for first-time homebuyers is
Cottage Grove, Wis. Just 15 miles
outside Madison, this hidden gem
offers residents close proximity to city jobs with a slower pace of
life. The town itself offers a variety of charming shops and
restaurants and is within a few minutes of the two prominent golf
courses in the area – The Oaks Golf Course and Door Creek Golf
Course. When looking for nightlife, residents turn to Madison for its restaurant and bar scene and
daytime activities such as boating on Lake Mendota and Lake Monona
and visiting the popular Olbrich Botanical Gardens.
- Grimes, Iowa
Landing in the No. 7 spot, Grimes, Iowa is located just west of
Des Moines. The area's low cost of
living and strong job market make it an attractive spot for young
people. Many residents are pleased to learn that they can buy a
home for not too much more than the cost of renting. Popular
activities include cheering on the Iowa State
University football and basketball teams. Magna is just a short trip to Des Moines where locals can enjoy the arts and
many cultural activities. Those looking to start a family will
appreciate the highly rated schools such as Webster Elementary
School.
- Kuna, Idaho
No. 8 on the list is Kuna,
Idaho, located just outside of Boise. Locals love the area's great access to
outdoor activities, beautiful surroundings and friendly people.
While the Boise housing market has
been booming, young homebuyers are likely to have better luck in
Kuna than some of the surrounding
towns. The area experienced an influx of transplants from areas
like Calif. and Wash. who are drawn to the lower cost of living,
great quality of life and good schools including Falcon
Ridge Public Charter.
- Ferndale, Mich.
In 9th place is Ferndale,
Mich. This city is attractive to first-time buyers because
of its diversity, vibrant downtown area and great restaurants. It
is well-known to locals for its thriving LGBTQ+ community.
Ferndale's proximity to
Detroit and low price point make
it attractive to first-time buyers looking to break into the
housing market. Ferndale has
recently experienced an influx of buyers from nearby states like
Illinois and Ohio who appreciate the low cost of
living.
- Maitland, Fla.
Rounding out the top 10 is Maitland, Fla. Located near Orlando, Maitland is home to a number of popular lakes
and offers a wide range of homes, many of which are on large lots.
The town's good schools, such as Dommerich Elementary, are a draw
for first-time homebuyers who often have young children. During the
pandemic the area saw a lot of transplants from places such as
Calif., N.Y. and Boston, many of
whom are taking advantage of remote work – the area is also home to
a number of workers from Disney and Amazon.
Realtor.com® Best Markets for
First-Time Homebuyers Ranked
Rank
|
City
|
25-34
Year Old
Population
Share
(2022
Estimated)
|
2021
Overall
Active
Listing
per 1,000
Households
|
2021
Median
Listing
Price to
25-34
Year Old
Income
Ratio
|
Metro
Unemployment
Rate
(2022
Average
Estimate)
|
Estimated 2022
Travel
Time to
Work
(Minutes)
|
Metro
Food and
Drink
Establishments
per 1,000
Households
|
2022
Metro
Forecasted
Price
Growth
|
2022
Metro
Forecasted
Sales
Growth
|
1
|
Magna,
Utah
|
15.4%
|
46.1
|
5.0
|
2.3%
|
26
|
5.8
|
8.5%
|
15.2%
|
2
|
Chalco,
Neb.
|
14.5%
|
52.4
|
2.8
|
2.2%
|
24
|
5.2
|
4.9%
|
8.2%
|
3
|
Mauldin,
S.C.
|
13.5%
|
53.0
|
3.4
|
2.3%
|
24
|
5.1
|
5.7%
|
11.4%
|
4
|
Beech Grove,
Ind.
|
15.6%
|
45.7
|
3.4
|
2.7%
|
26
|
5.1
|
5.5%
|
14.8%
|
5
|
Portsmouth,
Va.
|
16.0%
|
69.4
|
4.0
|
3.2%
|
25
|
5.7
|
2.7%
|
11.8%
|
6
|
Cottage Grove,
Wisc.
|
15.0%
|
60.7
|
3.4
|
2.2%
|
26
|
5.6
|
3.9%
|
6.2%
|
7
|
Grimes,
Iowa
|
14.6%
|
110.4
|
3.1
|
3.2%
|
23
|
5.3
|
3.9%
|
5.9%
|
8
|
Kuna,
Idaho
|
13.7%
|
160.0
|
5.5
|
2.3%
|
30
|
5.1
|
7.9%
|
12.9%
|
9
|
Ferndale,
Mich.
|
15.9%
|
64.4
|
2.8
|
3.2%
|
27
|
4.9
|
5.6%
|
6.3%
|
10
|
Maitland,
Fla.
|
17.5%
|
67.0
|
5.1
|
3.2%
|
27
|
5.3
|
5.4%
|
8.8%
|
*Methodology
Realtor.com® ranked 1,112 cities and places with a
population of more than 5,000 based on the following criteria,
capping the list at one city per metro to allow for a greater
diversity of options across the country:
- The share of 25-34 year-olds in the local
population.
- The availability of homes for sale, measured by active
listings per 1,000 existing households.
- A measure of affordability, estimated by the ratio of
listing prices to gross incomes of 25-34 year-olds in each
city.
- A measure of job opportunities, estimated by the
unemployment rate of each city's surrounding metro area.
- The average commute time to work.
- A measure of the amenities in an area, estimated by the
count of food and drink establishments per 1,000 households in the
city's surrounding metro area.
- Forecasted metro home sales and home price growth in 2022.
The inventory of homes for sale and local median listing prices are
from Realtor.com® December
2020 to November 2022 listing
data.
- The cities and towns are defined as postal codes mapped to
Census Designated places and reflect approximate but not true city
or town boundaries. The population, household count, household
income, and average commute time data were sourced from 2021 and
2022 Claritas estimates based on Census Bureau data. The stated
forecasted unemployment rates are Moody's Analytics projections of
U.S. Bureau of Labor Statistics Local Area Unemployment Statistics.
Counts of food and beverage establishments are from 2018 County
Business Patterns data.
About Realtor.com®
Realtor.com®
makes buying, selling, renting and living in homes easier and more
rewarding for everyone. Realtor.com® pioneered the world
of digital real estate more than 25 years ago, and today through
its website and mobile apps offers a marketplace where people can
learn about their options, trust in the transparency of information
provided to them, and get services and resources that are
personalized to their needs. Using proprietary data science and
machine learning technology, Realtor.com® pairs buyers
and sellers with local agents in their market, helping take the
guesswork out of buying and selling a home. For professionals,
Realtor.com® is a trusted provider of consumer
connections and branding solutions that help them succeed in
today's on-demand world. Realtor.com® is operated by
News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move,
Inc. For more information, visit Realtor.com®.
Media Contact
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