This year is shaping up to be quite difficult for hopeful homebuyers, according to Realtor.com. Luckily, they've published the 2022 Best Markets For First-Time Home Buyers Report which predicts the best cities and towns with the best combination of quality of life and affordability for young homebuyers.
“Buying a first-home is always a challenging undertaking, and it's been an especially tough couple years for first-time buyers, many of whom are struggling to find a home that's within their budget or win in a competitive bidding situation,” said Realtor.com chief economist Danielle Hale. “With this in mind, and the fact that remote work has given people more flexibility in where they live, we wanted to identify markets where first timers have a chance to become homeowners and find a great quality of life.”
The report lists the best cities and towns for young homebuyers with a strong job market, short commute times, places to dine at night, affordability, young population, and more homes to choose from. The top 10 markets in 2022 were: Magna, Utah, Chalco, Neb., Mauldin, S. C., Beech Grove, Ind., Portsmouth, Va., Cottage Grove, Wis., Grimes, Iowa, Kuna, Idaho, Ferndale, Mich. and Maitland, Fla.
All of the cities listed are located within metro areas that are forecasted to have strong home sales and price growth. The sales in these surrounding areas are forecasted to grow 10.2% in 2022, much faster than the national average of 6.6%. Prices are expected to rise 5.4% in these areas, which is also higher than the national average of 2.9%. Magna, Utah, which is near the metro Salt Lake City, has the highest anticipated sales growth of 15.2% and highest expected sales growth of 8.5%.
A healthy job market is also significant to younger homebuyers when they’re looking to settle down. The surrounding metro areas for these locations have a low forecast unemployment rate of 2.7%, well below the national average of 3.6%. For buyers who put job market at the top of their list will likely consider Chalco, Neb. in the Omaha metro area and Cottage Grove, Wis. in the Madison metro area, which both have a forecasted unemployment rate of 2.2%.
The best markets chosen by Realtor.com also boast twice the number of homes for sale than the national average. In 2021, these markets had 79.2% active listings per 1,000 households compared to the national rate of 44.9%. Buyers who are looking to find most markets with the most availability will likely consider Kuna, Idaho, which has 160 active listings per 1,000 households.
Maitland, Florida takes the cake for hosting the most young people compared to the overall country. An average 15.2% of residents between the ages of 25-36 years old compared to 13.5% of the overall country. In Maitland, 17.5% of the population are young adults.
