A new analysis of the largest US housing markets has considered which offer the best conditions for first-time buyers.
Zillow looked at the affordability, competition, and expected value appreciation in 35 markets, with the Southeast proving the easiest options for new buyers, who it says make up 42% of all buyers (2017 figures).
Florida and Texas come out top as the best markets for first-timers with five of the top 10 markets for these buyers, thanks to a smaller required down payment, and more chance of a discount.
The West is where first-time buyers will struggle most with California’s metros ranking badly for their high prices, low inventory and longer time to break even.
"More and more millennials are reaching the point in their lives where they are ready to buy a home, but they are entering a highly competitive housing market that has been plagued by low inventory, especially among entry-level homes," said Zillow Senior Economist Aaron Terrazas.
Top 10 metros for first-time buyers
- Tampa, FL
- Indianapolis, IN
- Houston, TX
- Orlando, FL
- San Antonio, TX
- Saint Louis, MO
- Philadelphia, PA
- Atlanta, GA
- Las Vegas, NV
- Dallas, TX
People planning to buy for the first time in some of the tougher markets should be prepared to face a more competitive environment, but that doesn't mean they should count out buying entirely," added Terrazas.
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