New research from Zillow shows that the popular Sunshine State city tops the list for the best markets for first-time buyers based on median home value, home value forecast, supply, shorter breakeven compared to renting, and higher proportion of discounted prices.
The top ten best markets for first-time buyers is completed by Tampa, Indianapolis, Las Vegas, San Antonio, Pittsburgh, Atlanta, Detroit, Dallas and Cleveland.
"As millennials reach the typical home buying age, they are coming into a tough housing market with low inventory and lots of competition," said Zillow Chief Economist Dr. Svenja Gudell. "These markets have more favorable conditions for first-time buyers to become homeowners. More challenging metros aren't out of reach for new buyers, but they should be prepared to face a more competitive buying environment."
A median home in Florida would require a downpayment of around $40,000 whereas higher home prices and tight supply in the Bay Area and Pacific Northwest would pressure first-time buyers’ savings with a $70,000 downpayment needed.
Zillow says that buying in the Bay Area would mean a 5% downpayment larger than a 20% downpayment in most of the best areas for first-timers.
Its research also reveals that almost half of all homebuyers in 2016 were doing so for the first time, showing how keen renters are to make the move into homeownership.
More market update:
Those looking to get their first step on the American property ladder would find Orlando to be the most affordable market while the West coast is likely to be a challenge.