Toledo, Ohio has emerged as the top metro area for first-time owners. (iStock)
The housing market has its ups and downs, and first-time buyers are feeling the effects, too. But homebuyers in tight housing markets have other options, as some cities in the U.S. have stronger markets than others. According to a recent report from Realtor.com.
This report ranks the 100 largest metropolitan areas by expected sales and price growth in 2024. Which city came out on top? Toledo, Ohio.
Toledo has the highest percentage of homeowners who own their home without a mortgage at 41.2%. Toledo’s median home price was also 51.6% lower than the national average as of October 2023.
According to a report from Realtor.com, first-time buyers in the manufacturing, healthcare, education and government sectors will appreciate the abundance of jobs available in Toledo. However, Toledo is not without its problems. That is, the city’s unemployment rate is expected to reach 5.2% by the end of 2024. This is 1% higher than the expected national average of 4.2%.
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Other affordable cities for first-time homebuyers
As Toledo grows, other metropolitan areas (mainly on the East Coast) are also becoming more affordable. These four cities have more affordable properties than other parts of the country.
Rochester, New York
The average listing price in Rochester, NY is 41.2% lower than the national average, making it a much more affordable city compared to New York City. The city offers a variety of employment opportunities in healthcare, education, and manufacturing. But as Realtor.com points out, the city also has a vibrant art scene for young buyers to appreciate.
Rochester’s unemployment rate is expected to be better than Toledo’s, reaching 3.6% by the end of the year. This is significantly lower than the 4.2% expected nationally.
Springfield, Massachusetts
Springfield, Massachusetts is just an hour and a half from Boston and has been on the rise for a while now. The average list price at the end of 2023 was 13.3% lower than the national average and 56% lower than the average list price in Boston.
It’s not as bright as Rochester, where the unemployment rate is expected to reach 4.1% by the end of 2024.
Worcester, Massachusetts, Connecticut
Springfield’s neighbor, Worcester, is also an affordable area for first-time buyers looking for city living, especially compared to larger metropolitan areas. According to a report from Realtor.com, the average listing price in Worcester is nearly 42% lower than in Boston and about 33% lower than in the New York metropolitan area. That said, Worcester’s median house price is 14.7% higher than the national average.
Worcester’s job market is currently healthy, with an expected unemployment rate of 3.9% by the end of 2024.
Grand Rapids – Kentwood, Michigan
Off the East Coast, the Grand Rapids, Michigan area offers convenient access to the second-largest Great Lakes, and the median home listing price is 8.2% lower than the national average.
Grand Rapids is expected to end the year in line with the national average unemployment rate, indicating there is an abundance of jobs in the city.
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Homeowner’s insurance premiums are rising primarily due to an increase in natural disasters
The movement of homebuyers moving to other cities has slowed down in certain areas.
At the height of the COVID-19 pandemic, remote workers flocked to big cities. Now that the pandemic has subsided, such migration has slowed. In the summer of 2023, 24.1% of home buyers considered moving to another metropolitan area. According to a Redfin release:. Only 23.9% did the same between October 2023 and December 2023, indicating that the trend of slightly lower relocations will continue.
While many expensive cities have seen a decline in immigration, others are still experiencing significant growth.For example, Nashville Named to Redfin’s list of top cities to move to.
Kristin Sanchez, a local Redfin Premier real estate agent, said, “Many Nashville locals are seeing home ownership prices go down, but for people coming from places like California and New York, home prices here are going down. It still looks reasonable.” “Nashville has relatively low property taxes, insurance and utilities, and no state income tax. All of these things definitely help if you’re looking to lower your cost of living.”
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