Claman Countdown panelists Dorie and Jenny Lentz break down the top places Americans want to live.
By all accounts, 2024 will be a tough year for first-time home buyers in the market, with record home prices, rising interest rates, and soaring insurance premiums all exacerbating the U.S. home affordability crisis.
In fact, the proportion of first-time homebuyers hit a historic low last year, accounting for just 24% of all purchases.
The market is tough for potential homebuyers, especially those trying to realize the American dream for the first time. New research shows the best places to shop in 2025. (Justin Sullivan/Getty Images/Getty Images)
Still, demand is high, so for those still considering purchasing, Realtor.com recently annual report There has been a shift over the past few years as to which cities offer the brightest opportunities for those ready to take the leap into homeownership.
“The more affordable markets are starting to skew more south, especially for first-time homebuyers,” Joel Varner, senior economist at Realtor.com, told FOX Business.
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In last year's rankings, the digital real estate group included more Northeast and Midwest markets, but this year, three of the top 10 just in florida.
“The Sunbelt has been a major focus for buyers during the post-pandemic market heat, but as these southern markets cool down a bit, listing prices there have been flat to declining, making them less affordable. Prices are improving,” Berner explained.
In terms of a combination of home prices, availability of homes for sale, and location quality, the best markets for first-time homebuyers in 2025 are:
1. Harrisburg, Pennsylvania – Median list price $140,000
Harrisburg is the capital of Pennsylvania. (license/image)
2. Rochester, New York – Median list price $129,900
3. Villa, Florida – Median list price $236,950
4. Lauderdale Lakes, Florida – Median list price $154,850
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5. Altamonte Springs, Florida – Median list price $229,400
6. Lansing, Michigan – Median list price $135,000
Aerial view of Lansing, Michigan (license/image)
7. North Little Rock, AR – Median List Price $160,000
8. Baltimore, Maryland – Median list price $210,000
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9. Tonawanda, New York – Median list price $229,900
10. Wilmington, Delaware – Median list price $222,000
Views of the Wilmington River area from the Russell Peterson Wildlife Refuge in Wilmington, Delaware (Bo Sheng / iStock)
While these may be the best places to buy your first home this year, Realtor.com acknowledges that the current affordability crisis in the U.S. isn't going to end anytime soon.
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“There's definitely going to be a pricing challenge in 2025,” Berner told FOX Business. “What we most want for affordability in 2025 is especially as builders respond to demand for affordable housing and homeowners currently living in affordable housing move to upgrade. It’s about increasing the inventory of smaller, more affordable housing.”
