New Zillow report lists top 10 markets to buy in 2024
It might be a seller’s market right now, but first-timers are making big moves, too.
Zillow’s latest Consumer Housing Trends Report reveals that first-time homebuyers in 2023 accounted for half of all homebuyers last year. This is the highest share in the report’s history, dating back to 2018. It’s also up significantly from the 37% of FTHB among 2021’s home purchasers.
"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."
The "rate lock" effect — when homeowners are financially incentivized to keep their current home because of their low mortgage rate — has kept some would-be repeat buyers on the sidelines.
The top 10 markets for first-time home buyers in 2024 are St. Louis, Detroit, Minneapolis, Indianapolis, Austin, Pittsburgh, San Antonio, Birmingham, Kansas City, and Baltimore.
The top two markets in Zillow's ranking, St. Louis and Detroit, score well in terms of affordability. While not the most affordable housing market among the top 10, Austin ranks first in the number of similar-age households with which buyers can build a community.