Top 10 Housing Markets for First-Time Home Buyers in 2024

Where first-time buyers can find hidden gems

It was a sight for sore-eyed house hunters everywhere. Mortgage rates ended 2023 on a downswing, a trend expected to continue going forward.

With a lower projected cost of lending money than the year prior, 2024 should bring a large influx of potential first-time borrowers. A report from Realtor.com forecasts the 10 best metro areas for these first-time home buyers that feature desirable combinations of affordability, inventory, and lifestyle.

These hidden gem housing markets could help you become a homeowner in 2024.

2024’s fertile markets for first-time home buyers

Buying your first home is a major decision, defined by multiple factors, both personal and financial.

Due to a general lack of active listings and ballooning prices, conditions have been tough for first-time buyers. However, as declining mortgage rates offer relief, looking in the right places could give you even more of what you want.

“Buying a first home can be a daunting task. Couple high interest rates with historically low inventory of homes available for sale in 2023 and hopeful buyers have faced a particularly challenging market,” said Danielle Hale, chief economist at Realtor.com.

If 2024 is the year you finally make the splash into homeownership, these markets might offer you the optimal blends of affordability and amenities. And remember, many grants and programs exist for first-time home buyers, and are just a matter of qualifying.

Below are the top 10 housing markets for for first-time home buyers in 2024, according to Realtor.com. Rankings were based on eight metrics, equally weighted to determine a composite score.

These metrics included:

• The share of 25- to-34-year-old homeowner households
• The availability of homes for sale, measured by active listings per 1000 existing households in the past 12 months.
• The ratio of listing prices to gross household incomes of 25- to 34-year-olds in that city for the past 12 months.
• A measure of job opportunities, estimated by the forecasted unemployment rate of the city’s surrounding metro area.
• The average commute time to work.
• A measure of an area’s culture and liveliness; estimated by the count of restaurants, cafes, bars, shopping establishments, and other lifestyle businesses (theaters, comedy clubs, and arts classes) as listed on Yelp in November 2023.
• Forecasted metro home sales in 2024
• Forecasted metro home price growth in 2024 as an estimate of market health and equity growth.

Metro areas could only appear on the list once and locations needed an expected 2024 population of at least 5,000 to be included in the analysis. All Realtor.com data and forecasts are as of November 2023.

10. Baltimore, Maryland

• Best market: Riviera Beach, Maryland
• Forecasted 2024 share of 25-to-35-year-old households: 10.9%
• For-sale inventory per 1000 households: 59.3
• Median listing price: $264,079
• Price-to-income ratio: 2.7
• Forecasted 2024 average minutes of commute time: 33
• Culture and lifestyle businesses per 1000 households: 16.7

9. Syracuse, New York

• Best market: Mattydale, New York
• Forecasted 2024 share of 25-to-35-year-old households: 7.4%
• For-sale inventory per 1000 households: 31.6
• Median listing price: $138,450
• Price-to-income ratio: 2.0
• Forecasted 2024 average minutes of commute time: 20
• Culture and lifestyle businesses per 1000 households: 9.2

8. Oklahoma City, Oklahoma

• Best market: Moore, Oklahoma
• Forecasted 2024 share of 25-to-35-year-old households: 9.7%
• For-sale inventory per 1000 households: 43.6
• Median listing price: $231,475
• Price-to-income ratio: 3.2
• Forecasted 2024 average minutes of commute time: 26
• Culture and lifestyle businesses per 1000 households: 14.1

7. Grand Rapids, Michigan

• Best market: Grand Rapids, Michigan
• Forecasted 2024 share of 25-to-35-year-old households: 9.5%
• For-sale inventory per 1000 households: 33.1
• Median listing price: $260,000
• Price-to-income ratio: 4.3
• Forecasted 2024 average minutes of commute time: 21
• Culture and lifestyle businesses per 1000 households: 20.0

6. Buffalo, New York

• Best market: Cheektowaga, New York
• Forecasted 2024 share of 25-to-35-year-old households: 7.2%
• For-sale inventory per 1000 households: 26.6
• Median listing price: $199,000
• Price-to-income ratio: 3.1
• Forecasted 2024 average minutes of commute time: 21
• Culture and lifestyle businesses per 1000 households: 22.6

5. Omaha, Nebraska

• Best market: Council Bluffs, Iowa
• Forecasted 2024 share of 25-to-35-year-old households: 6.4%
• For-sale inventory per 1000 households: 37.6
• Median listing price: $200,000
• Price-to-income ratio: 3.0
• Forecasted 2024 average minutes of commute time: 21
• Culture and lifestyle businesses per 1000 households: 13.0

4. Hartford, Connecticut

• Best market: Newington, Connecticut
• Forecasted 2024 share of 25-to-35-year-old households: 6.6%
• For-sale inventory per 1000 households: 37.8
• Median listing price: $290,294
• Price-to-income ratio: 3.4
• Forecasted 2024 average minutes of commute time: 23
• Culture and lifestyle businesses per 1000 households: 19.2

3. Des Moines, Iowa

• Best market: Winterset, Iowa
• Forecasted 2024 share of 25-to-35-year-old households: 7.3%
• For-sale inventory per 1000 households: 47.8
• Median listing price: $269,400
• Price-to-income ratio: 4.0
• Forecasted 2024 average minutes of commute time: 23
• Culture and lifestyle businesses per 1000 households: 18.0

2. Little Rock, Arkansas

• Best market: Benton, Arkansas
• Forecasted 2024 share of 25-to-35-year-old households: 7.6%
• For-sale inventory per 1000 households: 50.2
• Median listing price: $197,500
• Price-to-income ratio: 3.0
• Forecasted 2024 average minutes of commute time: 25
• Culture and lifestyle businesses per 1000 households: 17.9

1. Rochester, New York

• Best market: Irondequoit, New York
• Forecasted 2024 share of 25-to-35-year-old households: 8.2%
• For-sale inventory per 1000 households: 34.1
• Median listing price: $187,000
• Price-to-income ratio: 2.5
• Forecasted 2024 average minutes of commute time: 22
• Culture and lifestyle businesses per 1000 households: 14.9

The bottom line

With interest rates anticipated to descend in 2024, more home buyers (especially first-timers) are expected to enter the market.

And although affordability will still likely be a challenge for many, some housing markets offer relatively accessible price points and a culmination of desirable characteristics.

If you’re ready to become a homeowner, talk to a local mortgage lender today to see what you can qualify for.