Claman Countdown panelists Dolly Lenz and Jenny Lenz analyze the top places Americans want to live.
By all accounts, 2024 was a tough year for people in the market to buy their first home, with record high home prices, high interest rates, and rising insurance costs all exacerbating America’s housing affordability crisis.
In fact, the share of first-time homebuyers fell to a historic low last year, accounting for only 24% of purchases.
The market has been tough for potential homebuyers, especially those looking to achieve the American dream for the first time. A new study shows the best places to shop in 2025. (Justin Sullivan/Getty Images/Getty Images)
Still, demand is high, so for those still looking to buy, Realtor.com just released its annual report on which cities offer the best opportunities for those ready to take the plunge into homeownership — and there have been shifts from previous years.
“A more affordable market, especially for first-time homebuyers, is starting to skew Southerners,” Realtor.com chief economist Joel Berner told FOX Business.
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He said in last year’s rankings, the digital real estate group saw more Northeast and Midwestern markets in the mix, and this year, three of the top 10 were in Florida alone.
“The Sun Belt was a major focus for buyers during the post-pandemic market, but as these markets in the South cool down a bit, affordability is improving because of lower prices there,” Berner explained.
Here are the top markets for first-time home buyers in 2025, based on a combination of housing costs, real estate availability, and neighborhood quality:
1. Harrisburg, Pennsylvania – Median list price $140,000
Harrisburg is the capital of Pennsylvania. (iStock / Stock)
2. Rochester, New York – Median list price $129,900
3. Villas, Florida – Median list price $236,950
4. Lauderdale Lakes, Florida – Median list price $154,850
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5. Altamonte Springs, Florida – Median list price $229,400
6. Lansing, Michigan – Median list price $135,000
Showing results for “Lansing, Michigan” (iStock / Stock)
7. North Little Rock, Arkansas – Median list price $160,000
8. Baltimore, Maryland – Median list price $210,000
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9. Tonawanda, New York – Median list price $229,900
10. Wilmington, Delaware – Median list price $222,000
View of the Wilmington River from the Russell Peterson Wildlife Refuge, Wilmington, Delaware (Bo Shen/Stock)
While these may be the best places to buy a first home this year, Realtor.com agrees that the current affordability crisis in the US is not expected to disappear anytime soon.
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“There are going to be challenges for full accessibility in 2025,” Berner told FOX Business. “Our best hope for affordability in 2025 is to see an increase in inventory, especially for small and affordable housing, as builders respond to the need for affordable housing and homeowners who live in affordable housing make moves to upgrade.”
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