First-time homebuyers decreased to just 24% of the market share in 2024, down from 32% a year prior and the lowest share since the National Association of Realtors began collecting data in 1981. And it’s generally taking longer for Americans to buy homes: The median first-time buyer age increased to 38 years old from 35 in 2023.
A lack of affordability and inventory, paired with high mortgage rates, have kept many young people from buying homes. While the housing market isn’t expected to see drastic improvements in 2025, there are cities that could be ripe for first-time homebuyers this year, according to a Realtor.com (NWSA) analysis.
To find the top cities for first-time buyers, Realtor.com scored some of the largest cities across the country based on: median listing price, aggregate location score, number of for-sale listings per 1,000 households, percentage of households with owners aged 25-34, average length of commutes to work, forecasted unemployment rate, and projected sales growth and median listing price growth in 2025.
Click through to see the 10 best cities for first-time homebuyers in 2025.
