Top 10 Cities For First-Time Home Buyers – Which Ones Truly Deliver On The Hype? – Financial Freedom Countdown

According to Zillow’s Consumer Housing Trends Report, first-time buyers now account for half of the market. But the journey to homeownership varies widely depending on location. Zillow’s latest rankings reveal the top cities for first-time buyers, where affordability and inventory create more promising opportunities to step onto the property ladder.

Zillow’s top markets for first-time buyers in 2024 are determined by:

– **Rent Affordability**: Percentage of median income spent on rent.
– **Availability of Affordable Inventory**: Affordable homes relative to median household income, keeping monthly mortgage payments within 30% of income.
– **Competition Level**: Ratio of affordable for-sale homes to renter households.
– **Population Demographics**: Percentage of households aged 29-43, the group most likely to be first-time home buyers.

These markets provide an easier entry point for new buyers due to affordable rent, greater housing options, and less competition for starter homes.

Here are Zillow’s top 10 cities for first-time home buyers in 2024.

St Louis, MO

St. Louis, MO, is an excellent choice for first-time home buyers due to its diverse architectural styles and historic neighborhoods, such as the Central West End and Soulard. The city also boasts a vibrant cultural scene with museums, theaters, and live music venues, providing a dynamic lifestyle for new homeowners.

Home Buying Age Households As a Share of Total Households: 26%
Percentage of Median Household Income Spent on Rent: 20%
Affordable Listings As a Percent of Total For-Sale Inventory: 67%
Affordable Listings To Renter Household Ratio: 3.4 per 100 Renters

Detroit, MI

Detroit stands out for first-time home buyers with its incredibly affordable housing market and a burgeoning revival in arts and industries. The city’s efforts in revitalization, particularly in areas like Midtown and the Riverfront, offer a promising environment for those looking to invest in a home with potential for appreciation.

Home Buying Age Households As a Share of Total Households: 24%
Percentage of Median Household Income Spent on Rent: 21%
Affordable Listings As a Percent of Total For-Sale Inventory: 64%
Affordable Listings To Renter Household Ratio: 4 per 100 Renters

Minneapolis, MN

Minneapolis, MN, offers a dynamic blend of urban and natural amenities that appeal to first-time home buyers. The city’s robust job market, extensive park system, and vibrant cultural scene, coupled with more reasonable housing prices compared to other major metro areas, make it a great place for newcomers to plant roots.

Home Buying Age Households As a Share of Total Households: 28%
Percentage of Median Household Income Spent on Rent: 20%
Affordable Listings As a Percent of Total For-Sale Inventory: 48%
Affordable Listings To Renter Household Ratio: 2.5 per 100 Renters

Indianapolis, IN

Indianapolis, IN, stands out for its blend of affordability and vibrant city life, making it a prime spot for first-time home buyers. Known as the “Crossroads of America,” Indianapolis boasts a rapidly growing tech industry and a rich cultural heritage, including the famous Indianapolis 500, which adds a unique flair to its local culture.

Home Buying Age Households As a Share of Total Households: 29%
Percentage of Median Household Income Spent on Rent: 22%
Affordable Listings As a Percent of Total For-Sale Inventory: 50%
Affordable Listings To Renter Household Ratio: 2.6 per 100 Renters

Austin, TX

Austin, TX, continues to attract first-time home buyers with its booming tech industry and lively music scene, epitomizing the city’s motto, “Live Music Capital of the World.” Despite its popularity, Austin offers a range of affordable neighborhoods, which, combined with a thriving job market and a vibrant cultural scene, makes it an appealing choice for young professionals looking to settle down.

Home Buying Age Households As a Share of Total Households: 34%
Percentage of Median Household Income Spent on Rent: 20%
Affordable Listings As a Percent of Total For-Sale Inventory: 23%
Affordable Listings To Renter Household Ratio: 1.3 per 100 Renters

Pittsburgh, PA

Pittsburgh, PA, offers a unique blend of affordability, innovation, and historical charm that attracts first-time home buyers. Known as the “Steel City,” Pittsburgh is reinventing itself with growing healthcare, education, and tech sectors. Its cost of living remains low compared to other major cities, providing accessible housing options amidst rich cultural institutions and bustling neighborhood revitalization.

Home Buying Age Households As a Share of Total Households: 24%
Percentage of Median Household Income Spent on Rent: 22%
Affordable Listings As a Percent of Total For-Sale Inventory: 63%
Affordable Listings To Renter Household Ratio: 3.7 per 100 Renters

San Antonio, TX

San Antonio, TX, boasts a rich cultural heritage and a cost of living that remains attractive to first-time home buyers. Known for its historic sites like the Alamo and vibrant festivals such as Fiesta, San Antonio offers a unique blend of old-world charm and modern amenities, making it an ideal choice for those looking to plant roots in a city that celebrates its multicultural history.

Home Buying Age Households As a Share of Total Households: 31%
Percentage of Median Household Income Spent on Rent: 23%
Affordable Listings As a Percent of Total For-Sale Inventory: 33%
Affordable Listings To Renter Household Ratio: 2.6 per 100 Renters

Birmingham, AL

Birmingham, AL, offers first-time home buyers affordable entry into a market steeped in historical significance and Southern charm. The city is known for its pivotal role in the civil rights movement and today blends this rich history with a burgeoning culinary scene and revitalized downtown area, making it an appealing option for newcomers looking for a mix of culture and community.

Home Buying Age Households As a Share of Total Households: 25%
Percentage of Median Household Income Spent on Rent: 22%
Affordable Listings As a Percent of Total For-Sale Inventory: 47%
Affordable Listings To Renter Household Ratio: 4.2 per 100 Renters

Kansas City, MO

Kansas City, MO, stands out to first-time home buyers with its vibrant arts scene and famous barbecue culture. The city’s affordable housing market is complemented by a diverse array of entertainment options, from jazz clubs to art museums, providing a lively urban atmosphere without the high costs typically associated with big city living.

Home Buying Age Households As a Share of Total Households: 27%
Percentage of Median Household Income Spent on Rent: 21%
Affordable Listings As a Percent of Total For-Sale Inventory: 51%
Affordable Listings To Renter Household Ratio: 2.2 per 100 Renters

Baltimore, MD

Baltimore, MD, offers first-time home buyers a rich history and cultural heritage, highlighted by its charming rowhouses and iconic Inner Harbor. The city provides a balance of urban amenities and affordability, with diverse neighborhoods and a variety of dining and entertainment options.

Home Buying Age Households As a Share of Total Households: 27%
Percentage of Median Household Income Spent on Rent: 22%
Affordable Listings As a Percent of Total For-Sale Inventory: 56%
Affordable Listings To Renter Household Ratio: 2.3 per 100 Renters

Glimmer of Hope For First-Time Home Buyers

Across much of the United States, the dream of homeownership is increasingly out of reach due to skyrocketing home prices and stagnant wages. As the worst inflation in 40 years drives up the cost of living, home prices have outpaced average income, creating a significant affordability gap for many Americans.

However, the Zillow report offer some hope for aspiring homeowners, with more accessible prices and a range of options in a challenging housing landscape.

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The 10 States Taxing Social Security in 2024 and the 2 That Just Stopped

As 2023 tax filing season draws to a close, retirees across the nation are adjusting their financial plans for 2024, but a crucial detail could drastically alter the landscape of retirement living: the taxing of Social Security benefits. While many bask in the belief that their golden years will be tax-friendly, residents in ten specific states are facing a reality check as their Social Security benefits come under the taxman’s purview. Conversely, a wave of relief is set to wash over two states, marking an end to their era of taxing these benefits. This shift paints a complex portrait of retirement planning across the U.S., underscoring the importance of staying informed of the ever changing tax laws. Are you residing in one of these states? It’s time to uncover the impact of these tax changes on your retirement strategy and possibly reconsider your locale choice for those serene post-work years. Here are the states taxing social security benefits.

The States Taxing Social Security in 2024 and the 2 That Just Stopped

Retire Abroad and Still Collect Social Security? Avoid These 9 Countries Where It’s Not Possible

Dreaming of retiring to a sun-drenched beach or a quaint village? Many Americans envision spending their golden years abroad, savoring the delights of new cultures and landscapes. However, an essential part of this dream hinges on the financial stability provided by Social Security benefits. Before packing your bags and bidding farewell, it’s crucial to know that not all countries play by the same rules when it comes to collecting these benefits overseas. Here are the nine countries where your dream of retiring abroad could hit a snag, as Social Security benefits don’t cross every border. Avoid living in these countries so your retirement plans don’t get lost in translation.

Retire Abroad and Still Collect Social Security? Avoid These 9 Countries Where It’s Not Possible

Trump Tax Cuts Expiring Soon: Action Steps You Need to Take Now

Several key elements of the Tax Cuts and Jobs Act (TCJA) are scheduled to lapse by 2025. This pivotal tax reform, implemented during President Trump’s tenure, brought substantial changes to the U.S. tax structure. With the expiration drawing near, it’s crucial for individuals to take proactive steps in their tax planning.

Trump Tax Cuts Expiring Soon: Action Steps You Need to Take Now

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