These Are the Best Locales for First-Time Homebuyers

The town of Irondequoit in upstate New York offers the most affordable option for first-time homebuyers, a group that has struggled to secure the dream of homeownership amid elevated prices for houses and high mortgage rates that have shaped the market over the last two years.

Irondequoit was one of 10 areas around the country that, according to realtor.com, offer prospective homebuyers from age 25 to 34 relatively cheaper options for homes. The median listing price for a home in the town, which is within reach of the city of Rochester, comes to a little under $190,000.

The town offered ample opportunities for work, has a short commute and gives homeowners the potential for more than 10 percent price growth for the year, according to realtor.com.

"It's a really nice affordable place for young people to consider buying a home," Danielle Hale, chief economist at realtor.com, told Newsweek.

Irondequoit was one of 10 places that realtor.com ranked as the most attractive for first-time homebuyers.

Here are the others on the list:

• Benton, Arkansas
• Winterset, Iowa
• Newington, Connecticut
• Council Bluffs, Iowa
• Cheektowaga, New York
• Grand Rapids, Michigan
• Moore, Oklahoma
• Mattydale, New York
• Riviera Beach, Maryland

The most expensive area on the list offered a median listing price of a little over $290,000, close to $100,000 less than the national quote of about $380,000.

All chosen locales were characterized by having more homes available for sale that are also affordable, giving residents shorter commutes to work and offering a decent quality of life.

"Another key indicator we look at is a high share of homeowners that are in the 25 to 34 age range. So that means there are young people around which, you know, young people like to be around other young people," Hale said. "Also, they are homeowners, which means they're already having some success at buying homes in these housing markets."

First-time homebuyers have struggled to enter a housing market that over the last two years has been steered by mortgage rates at two-decade highs and elevated prices that have made the dream of homeownership beyond the reach of a lot of Americans.

Mortgage rates have dropped recently, giving some buyers the opportunity to enter the market. But prices, while having achieved some level of stability, remain elevated.

Realtor.com found that the places it listed as most attractive also offered price-to- income ratios that were less than the national rate of 5.4.

Hale said one thing that jumped out at her while compiling the data was that none of the places the company deemed attractive are in the West, even though that part of the country includes industries popular with young Americans, such as technology.

"There aren't any areas in the West that are on this list," Hale said. "Not terribly surprising, given that we've seen people gravitate towards the Midwest and the Northeast and the South when those areas offer quite a bit more affordability."

But Hale also pointed out that there was an element of give-and-take when considering some of these locales, as they may not offer everything sought by young buyers.

Some of the places, while offering affordability and jobs, may lack lifestyle options such as restaurants, cafes and entertainment venues that a place like New York City provides.

"This list of areas represents our attempt to find the places that offer the best balance of all the different factors, but everyone's going to have to make the trade-offs that are right for them," Hale said.