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Florida and Las Vegas are the Best Markets for First-time Homebuyers

First-time buyers looking for an affordable home without steep competition will have the best luck…

  • April 6, 2019

First-time buyers looking for an affordable home without steep competition will have the best luck in Tampa, Florida, according to an analysis from online real estate company Zillow.

This is the second year in a row that Tampa tops this list.

Zillow ranked the 35 largest U.S. housing markets based on where first-time buyers should have the most success moving into a home they love with a strong forecasted appreciation.

First-time buyers make up 46 percent of all buyers, and more than 6 in 10 of them are Millennials.

The U.S. housing market has cooled recently and inventory is up 1 percent year-over-year, after being down 8.7 percent last year.

It’s the first-time inventory has been up heading into home-shopping season in at least five years. In even more welcome news for first-time buyers, inventory of less-expensive starter homes has turned around far more – up 4.1 percent after being down 12.9 percent last year.

Even with this change, there still are not enough homes for sale to meet buyer demand, and the market remains competitive.

Zillow’s list of the best markets for first-time buyers is based on four metrics:

  • Low median home value that requires a smaller down payment
  • Strong forecasted home value appreciation, helping buyers’ overall wealth grow
  • High inventory-to-household ratio, to indicate available supply
  • High share of listings with a price cut

Ten Best Markets for First-Time Homebuyers

  1. Tampa, FL
  2. Las Vegas, NV
  3. Phoenix, AZ
  4. Atlanta, GA
  5. Orlando, FL
  6. Miami, FL
  7. Detroit, MI
  8. Dallas, TX
  9. Nashville, TN
  10. Charlotte, NC

Ten Most Challenging Markets for First-Time Homebuyers

  1. San Francisco, CA
  2. Seattle, WA
  3. Washington, D.C.
  4. Los Angeles, CA
  5. Sacramento, CA
  6. Minneapolis, MN
  7. Denver, CO
  8. San Diego, CA
  9. San Jose, CA
  10. Boston, MA

Find out more at www.zillow.com.