• Zillow identified 10 U.S. cities, mainly in the Sun Belt and Midwest, as the best markets for first-time homebuyers.
• Key factors include lower rent-to-income ratios, more affordable listings, less competition, and a higher share of buyers in prime homebuying years.
• Top cities include Jacksonville, Birmingham, San Antonio, Atlanta, Houston, St. Louis, Detroit, Raleigh, Baltimore, and Louisville.

It’s hard to deny that the housing market remains challenging, especially for first-time homebuyers. Listing prices remain unaffordable for many buyers, and many markets continue to lack a supply of listings needed to meet would-be buyers’ demand.

But real estate remains a game of location, location, location—and some cities are offering a much clearer path for renters hoping to buy their first home than others. 

How Cities Were Chosen

A new Zillow report identified the 10 U.S. markets among the nation’s 50 largest metro areas where first-time homebuyers stand the best chance of no longer having to answer to a landlord each month.

In order to determine this, the report considered four factors that contribute to a market being accessible for would-be homebuyers: 

• Renters earning the median household income spend a smaller share of their income on rent
• A larger share of active for-sale listings that are affordable to median earners 
• A larger number of affordable listings relative to renter households, indicating less competition 
• A larger share of households in prime homebuying years (ages 29 to 43), indicating an appealing market

Related

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Where New Buyers Stand a Chance

According to the report, the Sun Belt and the Midwest were the two regions that typically offer the most favorable combination of factors for first-time homebuyers. Sun Belt metros in particular dominated the ranking, with six of the top 10 cities, due to their relatively affordable rents, attainable inventory, and reduced competition from other buyers. 

Below are the 10 cities for first-time homebuyers in the U.S. right now, as reported by Zillow:

1. Jacksonville, FL
2. Birmingham, AL
3. San Antonio, TX
4. Atlanta, GA
5. Houston, TX
6. St. Louis, MO
7. Detroit, MI
8. Raleigh, NC
9. Baltimore, MD
10. Louisville, KY

Tips for First-Time Buyers

Of course, buying your first home is not a decision to be taken lightly, and first-time buyers should carefully consider their credit score, savings, and budgeting before taking the plunge. This is particularly the case in the current housing market.

Still, as California real estate broker Doug Shepherd previously shared with BHG, sometimes waiting too long for the market to improve—with lower rates and more affordable pricing—can be counterproductive. As Shepherd explained, the top tip he gives his clients is to get into homeownership as quickly as possible.