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best US cities for first-time homebuyers

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As Mortgage rates Continue to rise, Possibility of recession There are many things to consider for the upcoming first-time homebuyer. The vast amount of information to consider when making such a large decision can be overwhelming.

However, recent Bankrate research can help ease the process, at least when it comes to deciding where to live.

Bankrate The best metropolitan area for first-time homebuyers The survey surveys 50 metropolitan areas and scores them for affordability, wellness, employment markets, market tightness, and safety. Then we combined the scores to create the final ranking. Affordable is 30%, wellness and culture is 10%, housing market tightness, safety and employment are 20% each.

Affordability was calculated primarily by comparing the income required to qualify for a mortgage in a region with the median home price in early 2022. Employment market scores used the US Department of Labor’s unemployment rate and average commute time. According to Realtor.com, the tight housing market reflects housing inventories and the average time a home spends in the market.

To determine safety scores, Bankrate examined FBI data on violent and property crime rates. For wellness and culture scores, we looked at Sharecare’s Community Well-Being Index from 2020. It evaluates factors that improve quality of life, such as access to food and health care, and the number of art centers located in a particular metropolitan area. ..You can read more about the methodology here..

Ultimately, Pittsburgh will be the number one city in the United States for first-time homebuyers. Immediately after Pittsburgh is the Minneapolis metro area, followed by Cincinnati. According to Bankrate, the top 10 best cities for first-time homebuyers are:

  1. Pittsburgh
  2. Minneapolis-St. Paul-Bloomington
  3. Cincinnati
  4. Kansas City, Missouri, Kansas
  5. Buffalo-Chiktowaga-Niagara Falls, New York
  6. Richmond, Virginia
  7. Cleveland
  8. St. Louis
  9. Hartford-West Hartford-East Hartford, Connecticut
  10. Milwaukee-Walkisha-West Allis

Ranked # 1 for affordability, # 2 for tight markets, and # 3 for safety, Pittsburgh tends to focus on affordability, especially given that most first-time homebuyers tend to focus on affordability. It is natural that I took the top spot. No other city in the ranking has won the top three spots in three separate categories.

The median home price in Pittsburgh is $ 169,000, more than $ 1 million cheaper than the median Silicon Valley and San Francisco, Bankrate reports. Pittsburgh also has a number of entertainment options, from national sports teams to numerous museums.

However, Pittsburgh ranks 47th in its employment market, much lower than the other Top 10 Metros, and the lowest rank received by the Top 10 Metros in any category. Future homebuyers need to consider which categories are most important to them.

All of the top 10 areas scored in the top half of the affordable ranking are all, with the lowest being the 22nd Milwaukee Metro area. This makes sense because affordable scores were the most important in bank rate rankings.

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