Realtor.com® Forecasts the 10 Best Markets for First-Time Homebuyers in 2025
Homeowner Newbies Should Put Harrisburg, PA, at the Top of their Search List
For first-time homebuyers, the Mid-Atlantic and Florida are the best places to kickstart their home ownership journey in 2025. That’s according to the 2025 Realtor.com® Best Markets for First-Time Homebuyers report, which ranked Harrisburg, Penn., as No. 1 followed by Rochester, N.Y., Villas, Fla., Lauderdale Lakes, Fla., Altamonte Springs, Fla., Lansing, Mich., North Little Rock, Ark., Baltimore, Tonawanda, N.Y., and Wilmington, Del.
“Last year saw historically low activity for first-timers, with the group accounting for only 24% of successful homebuyers. While home prices remain high and mortgage rates are forecasted to stay above 6% throughout 2025, the year is expected to see more inventory hit the market – a silver lining for shoppers who will see more or less choice depending on where they are,” said Danielle Hale, Chief Economist, Realtor.com®. “The places highlighted offer opportunities for first timers in terms of the cost of housing, availability of homes for sale, and quality of the location. Even in these high-opportunity areas, tradeoffs likely need to be considered for buyers to get to the closing table. Choosing the best place will come down to what’s most important to each buyer and their family, and our list of places, and their qualities, is a good guide.”
The Best Markets for First-Time Homebuyers in 2025
| Rank | Place | Region | 2025 Forecast 25-34 Year Old Home-owner Share of House-holds | 12 Month Ending Nov 2024 Inven-tory per 1000 House-holds | 12 Month Ending Nov 2024 Median Listing Price | 12 Month Ending Nov 2024 Price to Income Ratio | 2025 Forecast Average Travel Time to Work in Minutes | 2024 First-Time Home-buyer Location Score (out of 10) |
| 1 | Harrisburg, PA | NE | 20.6 % | 34.8 | $140,000 | 2.6 | 22 | 9.2 |
| 2 | Rochester, NY | NE | 22.3 % | 21.2 | $129,900 | 2.5 | 21 | 9.2 |
| 3 | Villas, Fl | South | 14.1 % | 85.6 | $236,950 | 3.4 | 26 | 8.0 |
| 4 | Lauderdale Lakes, FL | South | 11.2 % | 72.4 | $154,850 | 2.7 | 32 | 7.7 |
| 5 | Altamonte Springs, FL | South | 19.4 % | 46.8 | $229,400 | 3.6 | 28 | 7.2 |
| 6 | Lansing, MI | Midwest | 21.4 % | 42.3 | $135,000 | 2.6 | 21 | 6.8 |
| 7 | North Little Rock, AR | South | 17.6 % | 38.5 | $160,000 | 3.3 | 22 | 5.7 |
| 8 | Baltimore, MD | South | 19.9 % | 51.6 | $210,000 | 3.3 | 32 | 8.6 |
| 9 | Tonawanda, NY | NE | 14.2 % | 30.2 | $229,900 | 2.9 | 22 | 8.1 |
| 10 | Wilmington, DE | South | 18.4 % | 41.3 | $222,000 | 4.1 | 25 | 9.7 |
First-time home buyers are looking to invest in a home that they feel proud to own and comfortable buying. In the annual report, Realtor.com® found the best markets that scored relatively high on factors important to folks starting their home ownership journey including affordable listings, strong local economies, lively places that are also great for growing families, and opportunities for a return on investment.
Affordable Homes
At a time when national asking rents have experienced year-over-year declines for 16 straight months, first-time buyers are looking to purchase a home that makes sense financially. As a general rule of thumb, a home being purchased or rented is “affordable” if it costs 30% or less of the renter/buyer’s income each month. This rule holds true in each of the top 10 markets, ranging from 15.2% of prospective homebuyers’ income in Rochester to 24.8% in Wilmington. Additionally, all 10 of the top markets have a median listing price well below the national median of $416,880. In fact, the most expensive market is Villas, Fla., which has a median listing price of $236,950, just shy of $180,000 less than the national median.
Strong Local Economy
As one of the biggest purchases many will make in their lifetime, maintaining payments on a mortgage requires gainful employment. Each of the markets ranked in the top 10 are forecasted to have lower than national average unemployment rates in 2025. Additionally, the markets are close to major job hubs including state capitols, which is the case for Harrisburg and North Little Rock, and academic institutions and hospitals, as is the case for Rochester, Lansing, and Baltimore. Wilmington is even within commuting distance to the major city of Philadelphia.
Fun for Everyone
This year’s rank of best markets for first-time homebuyers provide options for all walks of a first-time homebuyer’s life. Daycares for growing families. Nightlife for single adults, and parents who need a night out. Prime choice groceries and shopping for all. Each of the markets have above-average location scores, though they also have their respective strengths and drawbacks across the categories. For example, foodies, shopaholics, and bar hoppers might not have many great options in Lansing and North Little Rock, though they score very well for family-friendliness, and daycares aren’t as plentiful in the Florida markets of Villas and Altamonte Springs, but are forecasted to have great price growth.
Show me the ROI
As a major financial investment and pathway to home equity, the ROI of a home purchase is a big consideration especially for first-time home buyers putting their first stake in the ground during a time with high mortgage rates and listing prices. Each of the places uncovered in this year’s top 10 list are forecasted to see price growth at a rate over the national projection of 3.7%, but the three Florida markets are expected to see the largest gains; Altamonte Springs (12.1%), Villas (9.6%) and Lauderdale Lakes (9%).
SOURCE Realtor.com
