It’s no secret that affordable homeownership seems to be a mirage that many a thirsting wanderer is chasing in a desert of high prices. However, a new report by Realtor.com® may offer some diamonds in the rough for prospective homebuyers who haven’t given up their pursuit.
One pitfall that many prospective homebuyers encounter in this day and age is a lack of inventory, which can, in part, be attributed to the rate lock-in effect—where current homeowners with low mortgage rates elect not to relocate in today’s higher rate and home price environment.
The inventory issue has become so prominent that it has spurred a number of predictions from within the industry, with Buffini & Company Founder and Chairman Brian Buffini predicting a 10% growth in home sales for 2025, with mortgage rates stabilizing around 6%, and Zillow predicting volatile mortgage rates and an increase in inventory, which would result in more modest buying activity for the upcoming year.
However, it doesn’t stop there. High mortgage rates have stagnated at a clip that’s considered unaffordable at the higher price points as prices continue to rise—with mortgage rates rising once again to start the year.
Realtor.com®’s report amalgamates a number of different factors when determining the best location for first-time homebuyers, including the local economy, demographic makeup, housing market affordability/growth potential and access to relevant amenities in each market.
These factors make for a much-needed reprieve in a market seemingly plagued by unaffordability. According to the report, the top 10 markets for first-time homebuyers in 2025 are as follows:
- Harrisburg, Pennsylvania ($140,000 median listing price)
- Rochester, New York ($129,900 median listing price)
- Villas, Florida ($236,950 median listing price)
- Lauderdale Lakes, Florida ($154,850 median listing price)
- Altamonte Springs, Florida ($229,400 median listing price)
- Lansing, Michigan ($135,000 median listing price)
- North Little Rock, Arkansas ($160,000 median listing price)
- Baltimore, Maryland ($210,000 median listing price)
- Tonawanda, New York ($229,900 median listing price)
- Wilmington, Delaware ($222,000 median listing price)
Realtor.com weighed a number of different factors in its analysis, including the percentage of the community aged 25 – 34, access to amenities, commuting distance, potential sales growth as of 2025 for investment purposes, unemployment rates, availability of homes as expressed by number of listings per 1,000 residents—and, most importantly, median home price.
A location with a strong local economy and affordable living is a potent combination in a market that frequently cost burdens young homebuyers, so much so that many have chosen to continue renting in the face of what seems like omnipresent home price increases and stagnating wages.
Perhaps the most intriguing factor for building wealth in these metros is potential for investment. The metros listed with the highest figures for 2025 Metro Forecasted Price Growth were all in Florida, with Altamonte Springs, Florida, clocking in at 12.1% and Villas, Florida, at 9.6%. Both of these figures were significantly higher than most of the rest of the list. These may be good options for those looking to relocate very quickly after making a purchase if the figures (and resultant price growth) prove true.
According to Realtor.com, studies have shown that in order to build intergenerational wealth, the sooner first-time homebuyers make their first purchase the better. According to the National Association of REALTORS®, only 24% of homebuyers in 2024 were first-time homebuyers, the lowest rate of first-time homebuyers in a sample since 1981, an indication of a market that is struggling to meet the needs of one of its most important segments.
For the full report, click here.
