Smaller Markets Offer Relief and Opportunity for First-Time Homebuyers In 2022

With strong job markets, short commute times, younger resident populations, lively restaurant and bar scenes, greater affordability, and rare real estate availability, these top markets of 2022 offer first time buyers long-awaited relief from a frenzied year-long seller’s market. According to Forbes, rural and suburban markets had 72.9 active listings per 1,000 households compared with a national rate of 44.9. 

States like Utah and Nebraska in the Midwest boast the most prosperous markets for new buyers in rural areas like Magna and Chalco, where flourishing communities and opportunities for job growth intersect with housing affordability.

More affordable homes: Sticking to a budget can be tricky for many first-time buyers, but the best markets have options for the cost-conscious. By comparing the typical home list price to the average income for young adults, Realtor.com determined that the home-price-to-income ratio in the best markets (3.9) was much lower than the national rate (5.0). Home shoppers who are looking for affordability can head to Chalco, Nebraska or Ferndale, Michigan, which offer the most affordability on the list.

Strong local housing markets – All of the cities on the list are within metro areas that are forecasted to have strong home sales and price growth. Sales in these  surrounding metro areas are projected to grow at 10.2% in 2022, much faster than the national average of 6.6%. Prices are expected to rise by 5.4%, which is significantly higher than the national average rate of 2.9%. Magna, Utah has the highest expected sales growth rate of 15.2% and the highest expected price growth of 8.5%.

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