Zillow’s 2023 ranking of U.S. metropolitan areas for first-time homebuyers includes numerous placements for Midwest sectors across Ohio, Kansas, Michigan and Missouri.
Wichita, Kan., was named the nation’s top metro area for the demographic, showing that buyers there spend an average of 32 percent of income on a monthly mortgage and 27 percent on rent in 2022?. That’s compared to respective nationwide averages of 47 percent and 44 percent. Wichita also boasted an inventory to buyer ratio of 22-to-1, according to the report, which vastly eclipsed all other areas.
First-time buyers now represent 45 percent of all buyers, up from 37 percent in 2021 and in line with pre-pandemic figures, Zillow said.
In addition to mortgage and rent affordability, Zillow ranked the metros based on available homes for sale and the share of listings with a price cut.
“Although housing affordability is extremely challenging these days, some markets will be more hospitable than others for first-time homebuyers,” Zillow senior economist Orphe Divounguy said in a release. “These metros are potential hotbeds for those looking to buy their first home. Not only will shoppers find more affordable monthly mortgage costs and have an easier time qualifying for a smaller loan, but rent also is more affordable than elsewhere in the country, shortening the time it takes to save for a down payment."
Ranking just behind Wichita was Toledo, Ohio, with 26 percent of income spent on monthly mortgage, 29 percent on rent and an inventory to buyer ratio of 5-to-1.
Rounding out the top 10 were:
- Syracuse, N.Y.; 36 percent of income spent on rent, 30 percent on mortgage, inventory to buyer ratio of 4-to-1
- Akron, Ohio; 25 percent, 28 percent, 5-to-1
- Cleveland; 31 percent, 30 percent, 6-to-1
- Tulsa, Okla.; 31 percent, 31 percent, 7-to-1
- Detroit; 31 percent, 31 percent, 6-to-1
- Pittsburgh; 33 percent, 30 percent, 6-to-1
- St. Louis; 27 percent, 31 percent, 4-to-1
- Little Rock, Ark.; 30 percent, 32 percent, 6-to-1