First-time buyers made up half of all homebuyers in 2023, according to the latest Consumer Housing Trends Report published by Zillow (NASDAQ:Z, ZG). Last year’s figure represented the highest share in the report’s six-year history and is up from a low of 37% in 2021.
Zillow also published its ranking of the Top 10 markets for first-time home buyers in 2024. The list cited St. Louis, Detroit, Minneapolis, Indianapolis, Austin, Pittsburgh, San Antonio, Birmingham, Kansas City and Baltimore on its list. Zillow determined its ranking based on rent affordability, the share of for-sale listings a typical household can comfortably afford, the competition for affordable listings, and how many similar-age households live in the area.
“Affording a home is a tough hill to climb, and it’s especially steep for those buying their first home. Headwinds like mortgage rates, low inventory and rising rents are still strong, but easing,” said Zillow Senior Economist Orphe Divounguy. “Attractive homes are moving fast, so those looking to buy this spring should get their finances in order now, including getting pre-approved for a home loan. The increase in new listings this spring, due both to new construction and to more homeowners choosing to sell, will give buyers more options and help to ease price growth. The housing train is slowing down just enough to give more first-time buyers an opportunity to hop on board.”
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