If you’re thinking about buying your first home, you have much to look forward to. In addition to being an excellent investment, owning a home provides you with stability, comfort, and privacy.
While many US housing markets are increasingly unaffordable for first-time homebuyers, there are exceptions, and Bankrate recently ranked the top five most affordable states in which to buy your first home. The rankings were based on housing affordability, the job market for young adults, housing supply, credit availability, and the homeownership rate.
If you’re a first-time homebuyer who desires affordability, consider these states:
The Show-me state offers has two large metropolitan areas (Kansas City and St. Louis), spectacular rivers, and has a solid job market for young adults.
The Sunflower State epitomizes the US heartland, is home to one of the nation’s most storied basketball programs, and ranks highly in housing affordability.
The Land of 10,000 Lakes has beautiful scenery, a thriving metropolitan area that’s beloved by millennials, and plenty of housing. Be prepared to deal with cold winters!
The Beehive State is one of America’s most beautiful states. It has world class skiing (and was home to the 2002 Winter Olympics), dramatic canyons, and a thriving economy. Housing is less affordable than other states in this list, but the strong economy helps Utah rank highly in millennial homeownership rates.
The Hawkeye State has beautiful (and underrated) scenery, America’s most affordable housing market, and one of the highest millennial homeownership rates. If you’re a first-time homebuyer who wants affordability, look to Iowa!
When it comes to housing affordability for first-time buyers, look between the coasts
It’s a challenging environment for first-time homebuyers in many parts of the USA. The states in this list may not have the name recognition of California and Florida, but homes are much more affordable, have strong economies, and the cost of living is low.