Rising home prices, competition, and a decrease in inventory are just some of the issues plaguing the housing market. However, a new report by realtor.com [1] says first-time buyers are getting hit the worse.
Realtor.com states that of the expected home buyers this spring, 42% were shopping for a home for the first time, and the search for their first home took longer than ever.
The report states that a quarter of the first-time buyers searched for a home for more than a year and compared to 11% two years ago. Also, a third of first-time buyers were in the market for more than six months, compared to 18% two years ago.
"First-time buyers are usually younger and are motivated by getting married or starting a family," said Danielle Hale, realtor.com's Chief Economist. "They're looking for the type of home where they can have it all: space, affordability, and a good school system."
Realtor.com added that 45% of new buyers are searching for homes in small towns and rural areas, 34% are in suburbs, and 16% plan to stay in the city.
A recent Wallethub survey details [2]the best market first first-time buyers, who made up 39% of single-family home purchases in 2018.
The report found that Tampa Bay, Florida, was the best market for first-time buyers, as it has a “real estate market” rank of No. 2 and came in at No. 13 for quality of life.
Tampa Bay also came in as the best large city for first-time buyers. The next highest Florida metro to make the list was Orlando, which came in at No. 18.
Overland Park, Kansas, came in at No. 2, and was followed by Thornton, Colorado; Grand Rapids, Michigan; and Boise, Idaho, to round out the top-five.
A trio of markets in Ohio—Akron, Toledo, and Cleveland—were named the most affordable markets. California claimed all five of the least affordable markets with San Mateo, Sunnyvale, Glendale, Santa Barbara, and Berkeley.