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The housing market is tough to navigate, particularly for first-time buyers. A new report reveals the top five metro areas that buyers can consider if they’re on the lookout for deals.
For buyers who are looking for more affordable metros or cities to set down their roots, some of the best options are — no surprise — outside of big cities like New York and D.C.
According to a report by personal-finance site Bankrate, which looked at the top 50 metro areas by population, and ranked them based on affordability, job market, market tightness, and wellness and culture, they found that the best metro for a first-time buyer was Austin, Texas.
“‘Austin has experienced a boom in tech jobs, and as a result, themetro area’s incomes are the highest in Texas.’”
The pandemic boomtown was a favorite since many were able to work remotely as offices were shuttered over the last couple of years.
And “now that virtual workplaces are standard for white-collar employees, it’s possible to take your big-city income to a less expensive part of the
country,” Jeff Ostrowski, senior mortgage reporter for Bankrate, said in a statement.
“Austin has experienced a boom in tech jobs, and as a result, the
metro area’s incomes are the highest in Texas,” Ostrowski said. The city also is home to the University of Texas and a thriving music scene.”
Still, the cost of homeownership remains high with interest rates reaching for 7%. Indeed, the median monthly mortgage payment on a national level was $1,964, as of January, the Mortgage Bankers Association said on Thursday.
Here are there top five best metro areas for first-time buyers:
- Austin-Round Rock
- Kansas City, Mo.
- Raleigh, N.C.
- Minneapolis-St. Paul-Bloomington, Minn.
- Jacksonville, Fla.
“Texas and Florida have been attracting an influx of new residents,” Ostrowski said. “From April 1, 2020, to July 1, 2022, the two states saw their combined populations grow by more than 1.5 million residents, according to the U.S. Census Bureau.”
Conversely, here are the worst five markets for home buyers:
- Washington-Arlington-Alexandria
- Boston-Cambridge-Nashua
- New York-Newark-Jersey City
- San Diego-Carlsbad
- Riverside-San Bernardino-Ontario
Big city hubs like D.C., Boston and New York are known to be expensive real-estate markets. The median monthly rent in New York City and Boston, for instance, was $2,024, according to Apartment List. In D.C., the median rent was $1,790.
