For many Americans, owning a home has become a difficult milestone to complete, especially in New York City.
According to a report by Wallethub, last year’s first time buyers only made up 32% of the U.S. market, historically, it has been an average of 40%. Research also shows that those who are purchasing a home are older than their predecessors.
In the 1980s, many Americans in their late 20s became homeowners. In comparison to today, first time buyers are in their mid 30s.
As home prices and interest rates continue to rise, taking into consideration the reality of the housing market is key to achieving this important milestone.
“For most Americans, unfortunately, 2024 is a very difficult year to buy a home, said Anthony W Orlando, associate professor at California State Polytechnic University. “High interest rates and high prices are a financially challenging combination,” he said.
In this way, Wallethub compared 300 U.S. cities varying in sizes using data from 22 key metrics, including housing affordability to real estate tax rate and crime rate to determine the best and worst cities for first-time homeowners.
The research found New York City to be the 10th worst city for first-time home buyers in 2024 with high costs of living and a tight housing market.
In comparison, the study found that the top three cities to purchase a home for the first time are located in Florida.
“While the selection of a neighborhood is often constrained by an individual’s budget, it is best to consider proximity to places they frequently visit, such as work, school, shopping, and other amenities,” said H. Shelton Weeks, professor at Florida Gulf Coast University.
Palm Bay in Florida, while a small city, leads the country’s housing market due to its active home listings per capita and new building permits per capita. Those who wish to buy a home have a wide range of options, from older homes to brand-new homes.
Palm Bay also has the fourth highest rate of home appreciation in the country, the third highest millennial home ownership rate and good school systems. The next city is Cape Coral in Florida, boasting a high housing inventory, leading the country in real estate agents per capita, low violent crime rate, low property crime rate and a good school system. The third top city is Port St. Lucie in Florida, boasting the same qualities as its predecessors.
Experts recommend being precarious when making the decision to buy a property.
“If you have had a stable job for the last 2 years with foreseeable continuation, have saved enough to make at least a 10%to 20% down payment, and are ready to settle down in one location, you might be ready to purchase your first home,” said Doung Katie Pham, associate professor at Georgia Southern University.
