Intense competition in today’s expensive housing market has discouraged some first-time buyers, especially in larger urban areas.These buyers typically account for about 40% of the market, but now less than a third follow. Most National Association of Realtors data are Millennials aged 25-34.
However, there is still hope for home ownership. While the pandemic greatly spurred demand for housing But it also provides an opportunity for more flexibility where people can live, which benefits the same first time buyer.
So where is their best bet for 2021? Not surprisingly in the Midwest
Four of the top 10 best markets for first-time buyers, according to Realtor.com, are based in the Midwest.Bloomington, Illinois leads the list. Iowa City, Iowa ranked second, followed by Kalamazoo, Michigan; Great Falls, Montana; Eau Claire, Wisconsin; Savannah, Georgia; Schenectady, New York; Taylorville, Utah; Harrisonburg, Virginia; And Rapid City, South Dakota
All top markets have median house prices below the current national median of $ 370,000.Kalamazoo, Michigan, has the lowest median home price of $ 155,000, while Taylor’sville, Utah is the highest at 350,000. dollar
But it’s not just about price and affordability. In determining the best cities, Realtor.com looked at home prices in relation to local income, share of 25 to 34 year olds living in the market, home availability for sale, job opportunities, working distances. And facilities Such as bars and restaurants, they also limit their rankings to one city per state.
“With 50 percent fewer homes on the market this year than before, the US housing market is competitive for all buyers,” said Daniel Hale, Realtor.com chief economist. First, it’s more disadvantageous because they don’t have the funds from the previous home sale to help pay down or compete in the auction war.
Another survey of potential first-time buyers by Realtor.com found that 44% of millennials said they didn’t have enough down payment. However, this is partly because they were unaware of the programs designed to help them.
“There is a great loan program for first-time homebuyers that gives only 5% down payment without mortgage insurance,” said Jennifer Meyers, a Dwell real estate agent who often works with millennials. “There are programs like this all over the country and many first-time buyers are qualified. But I don’t know these great ways to make their first home more affordable. ”
However, if the purchase is not in question, the best cities to find affordable luxury rental apartments are mostly in the South, according to another study by RENTCafe, an apartment listing website. Georgia, particularly the Atlanta area, obstructed the top. Cities in Alabama and South Carolina as listed.