Florida is at the top of the list of best places for first-time homebuyers, while California is at the bottom
For first-time sellers in Florida, the market is great, but in California, the “Golden” State, the market has lost its shine.
WalletHub released a new report on Tuesday that ranked the best and worst cities in the country for 2024 for first-time homeowners. In 300 U.S. regions, it assessed affordability, real estate, and quality of life indicators using 22 major criteria, ranging from property prices to taxes and crime rates.
Florida is home to six of the top ten cities for first-time homebuyers, including Palm Bay, Cape Coral, Port St. Lucie, Tampa, Orlando, and Lakeland.
Nonetheless, California is home to eight of the ten worst cities for prospective homeowners. Costa Mesa, Glendale, Los Angeles, San Francisco, Oakland, Santa Monica, Santa Barbara, and Berkeley are some of these marketplaces.
According to WalletHub researcher Cassandra Happe, “the most important takeaway from this study for aspiring homeowners is the necessity of balancing affordability with quality of life when purchasing a home,” she said to Fox News Digital.
“With rising prices and interest rates making homeownership more challenging, it’s crucial for first-time buyers to be well-informed about market conditions, mortgage eligibility, and the real cost of living in different areas,” she said. “According to our analysis, the greatest locations for first-time homeowners are those that provide a variety of housing alternatives, excellent schools, low crime rates, and affordability. Finding a property that fits their wants and budget can be made easier for purchasers if they are aware of these things.”
Analyzing the three primary indicators in more detail, it is claimed that housing in Detroit, Michigan is the most inexpensive, 10.4 times less expensive than in Santa Barbara, which has the worst affordability.
According to WalletHub, the lowest real estate tax rate is found in Honolulu, Hawaii, which is eleven times less than that of Waterbury, Connecticut, which has the highest tax rate.
The three finest locations for first-time homebuyers are Port St. Lucie, Cape Coral, and Palm Bay in Florida. They all have highly regarded education systems, low crime rates, and a high number of active house listings per capita.
The trends, according to WalletHub’s analyst, point to notable variations in the housing markets of Florida and California in particular.
“Florida cities are more appealing to first-time homeowners because they often provide better affordability, more appealing real estate markets, and a higher quality of life. Conversely, Happe said that homeownership is less accessible for first-time buyers in California due to issues like higher living costs, real estate taxes, and possibly worse quality of life measures in the state’s cities.
“When it comes to quality of life, Florida tends to provide better options for families and new buyers, while California’s quality of life rankings are mixed, facing issues such as a high cost of living and urban challenges in many cities,” she said. “Overall, Florida presents more accessible housing options and a favorable real estate climate compared to California’s expensive and competitive market.”
According to data from the National Association of Realtors, the percentage of first-time homebuyers in the US market last year was only 32%, which is lower than the historical average of 40%.
And even if a swarm of new homeowners and families move to these Florida hotspots, Happe allayed worries about oversupply or fierce competition among buyers.
“While increased interest in top-ranked cities can indeed lead to shifts in market dynamics, our rankings are based on a comprehensive analysis of various factors, including affordability, access to mortgage loans and overall housing market conditions,” Happe stated.
“As long as buyers remain aware of changing market conditions and consider important factors, they can still find suitable opportunities in these cities, even as dynamics evolve over time.”