First time homebuyer? These markets are your best bet in 2025

By all accounts, 2024 has been a tough year for people in the market to buy their first home, with house prices on the rise Record levelsSky-high interest rates and insurance costs have exacerbated the housing affordability crisis in America.

In fact, the proportion of first-time homebuyers hit a historic low last year, accounting for just 24% of purchases.

However, demand is high, so for those still looking to purchase, Realtor.com recently released its location Annual report Which cities offer the best opportunities for those ready to make the leap into homeownership — and there have been shifts from years past.

“Affordable markets, especially for first-time homebuyers, are starting to skew further south,” said Joel Berner, chief economist at Realtor.com. Fox Business.

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In last year’s rankings, the Digital Real Estate group saw more Northeast and Midwest markets in the mix, he said, while this year, three of the top 10 were In Florida alone.

“The Sun Belt has been a major point of focus for buyers during the hectic post-pandemic market, but as these southern markets cool down a bit, affordability is improving due to flat to lower listing prices there,” Berner explained.

Here are the best markets for first-time homebuyers in 2025, in terms of a combination of housing cost, availability of homes for sale, and quality of location:

1. Harrisburg, Pennsylvania – Median list price is $140,000

2. Rochester, NY – Median list price $129,900

3. The Villas, Florida – Median listing price $236,950

4. Lauderdale Lakes, FL – Median list price $154,850

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5. Altamonte Springs, FL – Median list price $229,400

6. Lansing, Michigan – Median list price $135,000

7. North Little Rock, Arkansas – Median list price $160,000

8. Baltimore, Maryland – Median list price is $210,000

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9. Tonawanda, New York – Median list price $229,900

10. Wilmington, Delaware – Median list price $222,000

While these may be the best places to buy a first home this year, Realtor.com acknowledges that the current affordability crisis in the United States is not expected to go away any time soon.

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“There will definitely be affordability challenges in 2025,” Berner told FOX Business. “Our best hope for affordability for 2025 is to see Increase inventoryespecially in smaller, more affordable homes, as builders respond to demand for affordable housing and homeowners currently living in affordable homes move to upgrade.