PROPERTYSPARK ARTICLE

These Are The Best And Worst Cities For First-Time Homebuyers In 2023

When it comes to buying a new home, you want to make sure you are choosing a place to live that you can be comfortable in for a long time. You also want to make sure you aren’t overpaying too much when it comes to your first-time home purchase and some places have far higher home prices than you’d expect. If you want to make sure you are getting the best deal you can, check out this article where we’ll answer which are the best and worst cities to buy a new home in 2023.

What to Know as a First-Time Homebuyer

Buying your first home is something that you will never forget so you should make sure you do your best to remember it in a positive way instead of a negative way. There are quite a few things you need to consider before you even start looking but you should start with the basics. Let’s check out a couple of important things you need to consider before you buy your first home in America.

• Make sure you get all of your finances in order by working with a local financial expert that has experience with first-time homebuyers.
• Figure out your needs vs. wants when it comes to choosing your home.
• Pay attention to the neighborhood and the average resale rate they are getting.
• Check out the analytics to see what kind of people are living nearby.
• Keep yourself under budget to make sure you can pay for any extra repairs that might pop up after you move in.

Best Cities for First-Time Homebuyers in 2023

Now that we talked about a few things that you need to pay attention to, let’s talk about a few cities that would be perfect for first-time homebuyers.

Orlando, Florida

Cities near the beach are often much pricier to live in but there are quite a few hidden gems that you should consider if you want to find a home in a sunny location. Orlando has always been known as a retirement destination but its home prices have started to draw in families that want to be close to the Magic Kingdom. It’s just a 17-minute drive from Disney and the median home prices are in the upper $300K range (+0.5% year over year) so you can easily find a home that suits your needs and your budget. The cost of living is only 3% higher than the average city in America so it’s the perfect spot to consider if you want to save a bit of money.

Austin, Texas

Everything is bigger in Texas but the home prices in Austin are actually much lower than you would expect from a large town. The median home price for Austin is in the mid $600K range (-3.7% year over year) and there are typically thousands of homes available on the market so you have a wide variety to choose from. The cost of living is only 29% more than an average American city and Austin has become well-known for its rising jobs rates so it’s a solid choice for anyone who is looking to find new employment.

Boston, Massachusetts

Boston is a fantastic choice if you are looking for a town that is full of new jobs and incredible homes. The overall cost of living is roughly 53% more than the average city in America and it’s full of some amazing history. This city, specially the east side, has become one of the top places to go for jobs in science or technology which has led to a large rise in new homes being built so you’ll have plenty of options to choose from. The median home price for Boston is in the low $800K range (with +3.8% year over year) and there are many different home styles available from townhouses to large luxury homes.

Worst Cities for First-Time Homebuyers in 2023

Alternatively, there are a handful of cities throughout the states that present challenges for first time home buyers. The cities themselves are not necessarily an issue, but price points for real estate make for a difficult entrance into the market.

Burbank, California

One of the most expensive places to consider for buying a new home is Burbank, California which has a median home price sitting in the 1 million range. The homes are beautiful but the cost of living is much higher than you’d expect (about 91% more than the average city in America) so you are bound to end up paying more than you’d like to. The housing prices are also falling quite a bit (-15.6% year over year) so if you’re looking to invest, you might want to look to one of the cities we already mentioned if you want to end up selling your investment home at a good price.

Anchorage, Alaska

Another city that is a bit more expensive than you might think is Anchorage, Alaska. The city has a high cost of living (16% higher than the average American city) and the median home price is in the $300K range. The homes in Anchorage offer fantastic views of the nearby mountains but there are very few available on the market so you will likely have a hard time finding something that suits all of your needs. The state is also very spread out so be prepared to do a bit of driving to get your basic needs. Many residents also complain about the lack of yearly sunshine and the heavy snowfall in the winter months.

Boulder, Colorado

Some cities have seen tremendous growth in the last few years but they have had a difficult job keeping up with the high demand for new housing which often drives the price up higher than you’d expect. Boulder is a beautiful city that relies heavily on the tourism industry to keep its economy flowing and this has led to home prices that are much higher than average. The median home price is in the upper $900K range (with a rise of 8.8% year over year) and the cost of living is 67% higher than the average American city so be prepared to shell out a bit more money for bills.

These are just a few places that are good (and not so good) for those that want to make their first home purchase. There is quite a bit to consider so make sure you do your research to figure out which city works best for your needs. Buying your first home is something you are going to remember for the rest of your life and talking to a realtor is one of the best ways to make sure you are getting a home that fits your lifestyle.