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f buying a home in 2025 is one of your goals, don't let market uncertainty deter you. Despite high interest rates and low inventory, there are pockets of the country with thriving housing markets. Realtor.com's team has identified ten hotspots ideal for first-time buyers, considering factors like median home price, commute distance, and affordability.
According to Danielle Hale, chief economist at Realtor.com, last year saw historically low activity among first-time homebuyers, who accounted for only 24% of successful purchases. However, this year is expected to see more inventory hit the market, offering a silver lining for buyers.
These up-and-coming cities offer budding communities, proximity to job hubs, and a reasonable cost of living. Whether you're looking for more square footage, better schools, or a shorter commute, here are the top ten cities to consider:
Wilmington, Delaware: Median listing price $222,000, first-time homebuyer location score 9.7. This historic city is just 37 minutes from Philadelphia and boasts a mix of old and new homes.
Tonawanda, New York: Median listing price $229,000, first-time homebuyer location score 8.1. Located near Niagara Falls, this town offers easy access to nature trails and a robust community of small businesses.
Baltimore, Maryland: Median listing price $210,000, first-time homebuyer location score 8.6. This vibrant city is ideal for those working in the DMV area, with a lower price-to-income ratio and a bustling downtown scene.
North Little Rock, Arkansas: Median listing price $160,000, first-time homebuyer location score 5.7. This smaller city offers a lower cost of living and easy access to nature, making it an attractive option for young families.
Lansing, Michigan: Median listing price $135,000, first-time homebuyer location score 6.8. This up-and-coming city boasts plenty of natural attractions and is home to the R.E. Olds Transportation Museum.
Altamonte Springs, Florida: Median listing price $229,000, first-time homebuyer location score 7.2. This suburban city north of Orlando offers a great balance of affordability and amenities for growing families.
Lauderdale Lakes, Florida: Median listing price $154,850, first-time homebuyer location score 7.7. This quaint suburb is part of the greater Miami metropolitan area and boasts a low price-to-income ratio.
Villas, Florida: Median listing price $236,950, first-time homebuyer location score 8.0. Located near Cape Coral-Fort Myers, this town offers a great balance of seclusion and accessibility to amenities.
Rochester, New York: Median listing price $129,900, first-time homebuyer location score 9.2. This bustling metro area boasts the highest number of predicted young homeowners on this list, with easy access to Lake Ontario and cultural attractions.
Harrisburg, Pennsylvania: Median listing price $140,000, first-time homebuyer location score 9.2. The best real estate market for first-time buyers, Harrisburg offers a great balance of affordability, amenities, and natural attractions.
