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These statistics show a very low number of renters in the state; therefore, vacancy rates are high and rent prices are low, leaving a lot of supply and little demand. This is not ideal for investors who want to market their properties for top dollar and get quality tenants. In determining the overall ranking of the best states for first-time homebuyers, we analyzed and scored 12 different factors to arrive at a combined score. This table shows the 10 best states for first-time homebuyers, along with factors in their ranking like availability of programs, sale prices, property taxes and foreclosure rates. Keep in mind that as with any program of this type, there are likely eligibility requirements you’ll have to meet to qualify.
Credit Karma Stat Snapshot
Annual property taxes work out to a median $1,382 and the effective property tax rate is 0.80%. Homebuyers interested in The Bluegrass State can expect typical closing costs below $2,000. The median home value in Vermont hovers around $321,000 (19th-highest), which is up 16.46% since 2021. Vermont also has both the second-lowest foreclosure rate (less than one for every 10,000 houses) and average annual homeowners insurance ($825). Like the No. 1 ranking state, Indiana carries a lower percentage of households that are housing cost-burdened (15.85%, ranking No. 2 for this metric).

The Most Expensive ZIP Code in Every State - And How Much It Costs to Live There
Allison Bethell is a writer, real estate investor, broker, small business owner, and consultant and has a B.A. She has been featured in articles by outlets such as Forbes, The New York Times, The Street, and Realtor Magazine. Kentucky is considered very affordable, with a cost of living index of 89.1 (100 being the U.S. average).
Best States for First-Time Homebuyers in 2023
It’s placed in the middle of the pack when it comes to rankings like infrastructure (#23) and access to healthcare (#37). There are some factors, however, that contribute to the state’s low property values – West Virginia ranks #50 for infrastructure, #50 for healthcare, and #47 for education, according to U.S. In ascending order from lowest to highest monthly mortgage payment, here are the top 10 states where millennials do not need to go into tremendous debt to become homeowners. The 10 states which rank as the best for millennials to buy a home all have monthly mortgage payments for under $1,300.
The 10 best U.S. states for flipping houses, maximizing ROI—half are in the South - CNBC
The 10 best U.S. states for flipping houses, maximizing ROI—half are in the South.
Posted: Sun, 13 Aug 2023 07:00:00 GMT [source]
Across the country, housing markets got hot with activity, high demand and rising prices. Then came the Fed rate hikes in 2022, which contributed to a cooling of the housing market. For first-time homebuyers, navigating the housing market lately has been dizzying. In order to compile the list Niche graded each place by using data and aggregate surveys. Some of the factors it considered were income versus typical home values, cost of living, public school ranking, property tax, crime, and safety.
While its other rankings are moderately low, the overall home value and supply ranked fifth collectively, making it the primary reason for its inclusion in this list. Ranked among the top 10 most affordable states in the U.S., Iowa is also recognized as one of the safest. With a cost of living around 90% of the national average and housing costs at just 75% of the average, Iowa offers financial benefits and a diverse population that embraces differences. Huntsville recently ousted Birmingham as the state’s most populous city and is a hub for the aerospace industry. Its median home sale price is $270,125 and has been increasing steadily for several years. Birmingham is a great city for housing affordability with a median home sale price of only $109,083.

Home prices in Pennsylvania are comparatively affordable, with a 12-month average median sale price of $267,200. Pennsylvania’s average homeowners insurance premium of $955 ranks as the 13th cheapest rate of all 50 states. Utah falls slightly in our rankings this year compared to last year’s edition but still places as the No. 4 state for homeowners this year.
Types of Homes That Will Plummet in Value in 2024
Foreclosure rates can be represented as the number of foreclosures per number of housing units or as a percentage. Since the percentage rates of foreclosure are all less than 1%, it can be difficult to understand what these values mean. That’s why foreclosure rates are often represented as the number of foreclosed homes per all housing units.
Overall ranking of best states for first-time homebuyers
While this bodes well for buyers, investors should be cautious when purchasing in this state. However, its overall tax burden (13.50%) is the fifth highest, so population growth (-0.19%) will be lower than average, ranking 46th. The Golden State also has a high happiness score (59.97) and job growth (2.80%), ranking eighth and 15th of all 51 states.
A state’s resident affordability strongly drives the demand for more housing. Our evaluation is based on median household income and the cost of living, both gathered from World Population Review. States with a low cost of living and high income potential contribute to more opportunities and a thriving economy.
Although spending in excess of $600,000 on a home might seem absurd for many people, if that Home Value Forecast proves accurate, you’ll make over $40,000 on your purchase in just the first year. But, high costs and higher growth in home values are just part of what makes real estate in California unique. We ranked each state in every metric, and using the weightings described above, we found each state’s average ranking. The state with the best average ranking received a score of 100 while the state with the worst average ranking received a score of 0.