Houses are still too expensive. The S&P Case-Shiller index shows home prices continue to rise month after month, although the increase has decelerated. Mortgage rates are too high, mostly above 6%. Three years ago, the figure was close to 3%.
Realtor.com says some markets are affordable, particularly for first-time buyers. They are in cities with low incomes and are not on America’s expensive coasts. The real estate research firm reports, “We identified this set of the 10 best markets for first-time homebuyers to help guide young Americans seeking a place to put their roots down.”
It scored 10,067 Census-designated places that are located within the 100 largest metropolitan areas in the country. The yardsticks were affordability, economic health, housing availability, commutes, community quality, and economy, and housing outlook.
Most of the top markets were in the Northeast and Midwest, often in older, post-industrial cities. In each case, residents will not be living in places known for their size or economic diversity. In other words, none are like New York or Los Angeles.
The list is topped by Rochester, in upstate New York state, close to where the land meets Lake Erie. The median listing price of homes is $139,900. The number six market is just a few miles away. The median home price in Syracuse is $169,900
These are the 10 best cities in America for starter homes, along with their median listing prices:
| Rochester, N.Y. | Northeast | $139,900 |
| Harrisburg, Pa. | Northeast | $151,999 |
| Granite City, Ill. | Midwest | $119,000 |
| Birmingham, Ala. | South | $148,950 |
| North Little Rock, Ark. | South | $170,000 |
| Syracuse, N.Y. | Northeast | $169,900 |
| Baltimore, Md. | South | $223,900 |
| St. Louis Park, Minn. | Midwest | $375,000 |
| Pittsburgh, Pa. | Northeast | $249,000 |
| Garfield Heights, Ohio | Midwest | $140,000 |
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