Top 5 Affordable Housing Markets for First-Time Homebuyers
By Elizabeth Stewart @ Real Estate Daily
March 12, 2018

A combination of high home prices, low inventory, and rising interest rates has put immense financial pressure on first-time homebuyers in the U.S. Many new buyers are finding it impossible to afford home payments in some of the most in-demand housing markets.

In search of affordability, determined first-time buyers are moving to burgeoning markets that have low home prices, ample housing supply, and strong growth on the horizon.

Key Takeaways

  • Zillow ranked Tampa, Florida as the best market for first-time homebuyers
  • The top ranked markets have median home prices more than $50,000 below the national average
  • All five markets had strong population and home value growth forecasts

1. Tampa, FL

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, IN

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, TX

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, FL

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, TX

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

View the original article at Zillow Research