10 best markets for first-time homebuyers in 2018


If you know anyone who’s looking to buy their first home, you don’t need us to tell you that it’s a strong seller’s market.

Low inventory has led to an increase in real estate prices and many first-time home shoppers nationwide are struggling to find a place to call home without breaking their budget.

So where are the best cities for first-time buyers to look? The real estate website Zillow has some suggestions!

 RELATED: How paying off a mortgage in 2 years changed this woman’s life

New report: These are the best markets for first-time homebuyers

Zillow ranked the 35 largest U.S. housing markets based on where first-time buyers have the best chance to find an affordable home with little buyer competition and strong forecasted home value appreciation.

It found that new buyers will have it easiest in the Southeast, especially Texas and Florida.

Five of the top 10 markets for first-time buyers are in those two states, Zillow found. Homes in those markets require a smaller down payment, plus buyers are more likely to encounter price cuts.

“More and more millennials are reaching the point in their lives where they are ready to buy a home, but they are entering a highly competitive housing market that has been plagued by low inventory, especially among entry-level homes,” said Zillow Senior Economist Aaron Terrazas. “Southeastern markets will be easiest for new buyers, where homes are more affordable and there’s less competition. People planning to buy for the first time in some of the tougher markets should be prepared to face a more competitive environment, but that doesn’t mean they should count out buying entirely.”

On the other hand, first-time buyers are likely to face the most difficulty in West Coast markets. Homes in California metros are expensive, inventory is limited and it takes longer to break even.

Read on for Zillow’s list of the 10 best markets for first-time buyers in 2018…

1. Tampa, Florida

  • Population Growth: 1.9%
  • Share of Listings With Price Cuts: 18.7%
  • Zillow Home Value Index: $195,200
  • Breakeven Horizon: 1 year and 11 months
  • Zillow Home Value Forecast: 3.1%
  • Inventory: 13,733 homes

2. Indianapolis, Indiana 

  • Population Growth: 0.7%
  • Share of Listings With Price Cuts: 16.4%
  • Zillow Home Value Index: $143,200
  • Breakeven Horizon: 1 year and 7 months
  • Zillow Home Value Forecast: 4.0%
  • Inventory: 6,476 homes

3. Houston, Texas 

  • Population Growth: 1.7%
  • Share of Listings With Price Cuts: 16.7%
  • Zillow Home Value Index: $186,800
  • Breakeven Horizon: 1 year and 10 months
  • Zillow Home Value Forecast: 2.7%
  • Inventory: 26,275 homes

4. Orlando, Florida

  • Population Growth: 2.3%
  • Share of Listings With Price Cuts: 14.9%
  • Zillow Home Value Index: $216,100
  • Breakeven Horizon: 1 year and 8 months
  • Zillow Home Value Forecast: 3.5%
  • Inventory: 9,351 homes

5. San Antonio, Texas

  • Population Growth: 2%
  • Share of Listings With Price Cuts: 18.8%
  • Zillow Home Value Index: $169,300
  • Breakeven Horizon: 2 years
  • Zillow Home Value Forecast: 2.3%
  • Inventory: 8,036 homes

Here are the markets that rounded out the top 10 list: Saint Louis, Missouri; Philadelphia, Pennsylvania; Atlanta, Georgia; Las Vegas, Nevada and Dallas, Texas. Read more at Zillow.com.

RELATED:  Clark Howard’s tips for first-time homebuyers



Next Up in Business

CareSource gets latest report card from state
CareSource gets latest report card from state

CareSource’s performance rating slipped in some categories on its latest report card from Ohio Medicaid, though retained high marks for its efforts to keep children healthy. The nonprofit insurer, headquartered in downtown Dayton, overall received 14 out of 25 stars, ranking 3rd out of the five insurers that privately manage Medicaid plans in...
Trump nominates new commander of Air Force Materiel Command
Trump nominates new commander of Air Force Materiel Command

President Donald Trump has nominated Lt. Gen. Arnold Bunch Jr. to become commander of the Air Force Materiel Command at Wright-Patterson Air Force Base. Bunch currently serves as military deputy at the Office of the Assistant Secretary of the Air Force for Acquisition at the Pentagon. The nomination must be confirmed by the Senate. If confirmed, Bunch...
Dayton VA director says hospital to focus on new jobs, programs in 2019
Dayton VA director says hospital to focus on new jobs, programs in 2019

Dayton VA Medical Center Director Jill Dietrich told the Dayton Daily News that she’s focused on growing new programs, adding jobs and “continuing to provide excellent care” in 2019. Dietrich, who manages 2,300 employees and a $435 million budget, has oversight of the sprawling hospital campus in Dayton and four clinics in in Richmond...
Honda applies to build $36.5 million expansion
Honda applies to build $36.5 million expansion

Honda appears to be gearing up for a big expansion at its Anna engine plant. The automaker has recently applied to Shelby County for a new building construction permit valued at $33 million. The Honda of America and Devon Industrial Group application — filed near the end of November — seeks permission to build a 119,063-square-foot building...
Employers say they’re poised to hire in 2019
Employers say they’re poised to hire in 2019

Employers in the Dayton area will hire at a “respectable” pace in the first quarter of the new year, according to Manpower’s newest survey of area employers. Nearly a quarter — 24 percent — of surveyed employers plan to hire new employees from January to March next year, the survey found. This number is offset by the four...
More Stories