Bloomington, Ill., is the Best Market for First-Time Home Buyers

Rhea-AI Summary

Bloomington, Illinois, is ranked as the top market for first-time home buyers in realtor.com®'s 2021 analysis, with a median home price of $160,000. The Midwest dominates the list, with four out of the top ten cities, including Iowa City and Kalamazoo. The study highlights a competitive housing market, exacerbated by a 50% decrease in available homes compared to last year. Many first-time buyers struggle with down payments, as revealed by a survey showing 44% haven't saved enough. The analysis considered factors like affordability, job opportunities, and local demographics.

Positive

• Bloomington, Ill., ranked first for first-time home buyers with a low median home price of $160,000.
• Four out of the top 10 cities are in the Midwest, indicating strong opportunities in that region.
• Cities in the top 10 have median prices below the national average of $370,000, making them attractive for budget-conscious buyers.

Negative

• 50% fewer homes available in the market compared to the previous year, leading to increased competition.
• 44% of potential buyers have not saved enough for a down payment, highlighting affordability issues.

SANTA CLARA, Calif., April 8, 2021 /PRNewswire/ -- First-time buyers looking for an affordable home as well as job opportunities and quality of life may have to bypass major urban cities for more rural, secondary cities as the competition heats up for finding a home. In fact, they will have the best luck in Bloomington, Ill., according to realtor.com^® 's 2021 Best Markets for First-Time Home Buyers analysis.

With four of the top 10 markets, the Midwest ranks as the best region of the country for first-time home buyers, who according to the National Association of Realtors^®, account for nearly one-third of recent buyers. Iowa City, Iowa, ranked No. 2 in this analysis followed by Kalamazoo, Mich.; Great Falls, Mont.; Eau Claire, Wis.; Savannah, Ga.; Schenectady, N.Y.; Taylorville, Utah; Harrisonburg, Va. and Rapid City, S.D.

"With 50% fewer homes on the market this year than last, the U.S. housing market is competitive for all buyers. First-time buyers are at a bigger disadvantage since they don't have the funds from a previous home sale to help with their down payment or compete with bidding wars. Our recent survey of potential first-time home buyers confirmed this with 44% indicating they haven't saved enough for a down payment," said realtor.com^® Chief Economist Danielle Hale. "While relocating isn't an option for everyone, the pandemic has caused many to rethink their priorities, including where they want to live. This analysis was meant to provide some insight for those who are open to expanding their search as they weigh their homeowner options."

To determine the best markets for first-time home buyers, the majority of whom are millennials, many between the ages of 25 and 34, realtor.com^® took into account six factors, including housing prices relative to local incomes, the share of 25- to 34-year-olds living in the market, the availability of homes for sale, job opportunities, distance to work and amenities such as bars and restaurants. To achieve geographic diversification, the ranking was limited to one city per state.

All of the top 10 best markets have median home prices below the current national median price of $370,000. Kalamazoo, Mich., has the lowest median home price at $155,000 and Taylorsville, Utah, the highest at $350,000.

Nine of the 10 top cities are home to at least one four-year college or university, which likely contributes to the fact that their residents tend to skew younger than the country overall. Savannah, Ga., has the largest share of adults aged 25-to-34 at 16.9% of the city's total population. Only Rapid City, S.D., and Harrisonburg, Va., had a lower share of younger adults than the median national average. What these two cities lack in a younger population they make up for in lower unemployment rates, more food and drink establishments per household and a shorter commute to work than the national average.

For those looking for more homes to choose from, Schenectady, N.Y., with a median home price of $210,000, tops the list with nearly 18 listings per 1,000 households, Iowa City, Iowa offers 13.3 listings per 1,000 households, followed by Savannah, Ga., at 13.1 listings per 1,000 households. 

Realtor.com^®'s Top 10 Markets for First-Time Home Buyers

Rank	City	March 2021 Median Listing Price	March 2021 Active Listing per 1,000 Households	Metro Food and Drink Establish- ments per 1,000 Households	25- to 34- Year-Old Population Share (2021 Estimate)	December 2020 Metro Unemploy- ment Rate	Estimated 2021 Travel Time to Work (Minutes)
1	Bloomington, Ill.	$160,000	10.1	5.8	14.3%	5.2%	18
2	Iowa City, Iowa	$305,000	13.3	6.0	14.8%	2.7%	20
3	Kalamazoo, Mich.	$155,000	7.4	6.1	13.9%	4.9%	21
4	Great Falls, Mont.	$265,000	6.2	6.1	14.3%	4.4%	17
5	Eau Claire, Wis.	$275,000	6.0	5.8	14.0%	5.1%	18
6	Savannah, Ga.	$275,000	13.1	6.2	16.9%	6.0%	22
7	Schenectady, N.Y.	$210,000	17.6	6.1	13.5%	5.4%	24
8	Taylorsville, Utah	$350,000	6.5	5.6	15.9%	3.8%	24
9	Harrisonburg, Va.	$265,000	11.9	5.6	12.2%	4.0%	18
10	Rapid City, S.D.	$281,000	7.2	5.5	13.2%	3.2%	18

Methodology: To determine the top first-time home buyer markets, realtor.com^® ranked 774 cities with a population of more than 50,000 based on the following criteria: the share of 25- to 34-year-olds in the local population; the availability of inventory, measured by active listings per 1,000 existing households; affordability, estimated by the ratio of listing prices to gross incomes of 25- to 34-year-olds in that city; job opportunities estimated by the unemployment rate of the city's surrounding metro area; the average commute time to work and amenities in an area, estimated by the number of food and drink establishments per 1,000 existing households in the city's surrounding metro area.

About realtor.com^®
Realtor.com^® makes buying, selling, renting and living in homes easier and more rewarding for everyone. Realtor.com^® pioneered the world of digital real estate more than 20 years ago, and today through its website and mobile apps is a trusted source for the information, tools and professional expertise that help people move confidently through every step of their home journey. Using proprietary data science and machine learning technology, realtor.com^® pairs buyers and sellers with local agents in their market, helping take the guesswork out of buying and selling a home. For professionals, realtor.com^® is a trusted provider of consumer connections and branding solutions that help them succeed in today's on-demand world. Realtor.com^® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS^®. For more information, visit realtor.com^®.

Media Contact
Janice McDill, janice.mcdill@move.com

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SOURCE realtor.com

FAQ

What city is the best market for first-time home buyers according to realtor.com in 2021?

Bloomington, Illinois, is ranked as the best market for first-time home buyers in realtor.com's 2021 analysis.

Which region is the best for first-time home buyers in 2021?

The Midwest is the best region for first-time home buyers, with four cities in the top 10.

What are key factors influencing first-time home buyers in 2021?

Key factors include housing prices relative to local incomes, job opportunities, and availability of homes for sale.

What is the median home price for first-time buyers in Bloomington, IL?

The median home price in Bloomington, Illinois, is $160,000.

How has the housing market changed for first-time buyers in 2021?

First-time buyers face a competitive market with 50% fewer homes available compared to last year.