The 10 top markets for first-time homebuyers in 2023

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Newcomers to the market still face mortgage rates above 6% and lofty home prices, but they can secure strong investments in some up-and-coming towns minutes away from major metropolitan centers, according to Realtor.com. 

"For those with a bit of flexibility in where they live, there are markets where young buyers can find not just a relatively affordable home, but a neighborhood that offers a mix of economic opportunity and lifestyle amenities," said Danielle Hale, Realtor.com chief economist, in a press release.

The real estate firm's 10 best markets for first-time homebuyers features listings with the strongest combination of inventory, young residents, limited commutes and encouraging price trends (find Zillow's top 10 list for first-time homebuyers here). The locales in the list feature commutes under 30 minutes and plenty of local entertainment with an above-average amount of food and drink establishments and residents between ages 25 and 34. 

Most importantly, each town in the ranking features price-to-income ratios under the national average of 5.1, and forecasted home price growth compared to the national expected decline of 14.1%. Some of last year's top markets returned to the list, but former hotspots like Florida and Rocky Mountain metros fell behind North and East Coast locales. 

Realtor.com ranked towns with an expected population of at least 5,000 residents this year, and used its own housing data between December 2021 and November of last year. The ranking also utilized federal population and labor data and combined statistics for average food and beverage establishments per 1,000 residents, with the national average at 5.3.

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Boston, Massachusetts.

Somersworth, New Hampshire

Metro: Boston, Massachusetts
Median home list price: 329,900
2023 forecasted 25-34 year-old population share: 14.9%
2020 food and beverage establishments per 1,000 households: 6.2
2023 forecasted price growth: 9.5%
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Mattydale, New York

Metro: Syracuse, New York
Median home list price: 128,900
2023 forecasted 25-34 year-old population share: 15.9%
2020 food and beverage establishments per 1,000 households: 5.3
2023 forecasted price growth: 5.1%
Views Of New York State's Capital City

Watervliet, New York

Metro: Albany, New York 
Median home list price: $228,300
2023 forecasted 25-34 year-old population share: 15.9%
2020 food and beverage establishments per 1,000 households: 5.8
2023 forecasted price growth: 4.7%
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Eggertsville, New York

Metro: Buffalo, New York
Median home list price: $230,800
2023 forecasted 25-34 year-old population share: 13.3%
2020 food and beverage establishments per 1,000 households: 5.4
2023 forecasted price growth: 6.0%
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Magna, Utah

Metro: Salt Lake City, Utah
Median home list price: $410,000
2023 forecasted 25-34 year-old population share: 16.8%
2020 food and beverage establishments per 1,000 households: 5.6
2023 forecasted price growth: 2.6%
2022 rank: 1
Oklahoma City, Oklahoma, USA downtown skyline at twilight.
Oklahoma City, Oklahoma.

Moore, Oklahoma

Metro: Oklahoma City, Oklahoma 
Median home list price: $220,000
2023 forecasted 25-34 year-old population share: 16.8%
2020 food and beverage establishments per 1,000 households: 5.3
2023 forecasted price growth: 2.6%
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Gloucester City, New Jersey

Metro: Philadelphia, Pennsylvania
Median home list price: $160,000
2023 forecasted 25-34 year-old population share: 13.6%
2020 food and beverage establishments per 1,000 households: 5.6
2023 forecasted price growth: 5.7%
Aetna Inc. headquarters in Hartford, Conn. on Tuesday, Nov. 22, 2016.

Windsor Locks, Connecticut

Metro: Hartford, Connecticut 
Median home list price: $239,900
2023 forecasted 25-34 year-old population share: 12.6%
2020 food and beverage establishments per 1,000 households: 5.7
2023 forecasted price growth: 8.5%
Madison

DeForest, Wisconsin

Metro: Madison, Wisconsin 
Median home list price: $389,900 
2023 forecasted 25-34 year-old population share: 15.1%
2020 food and beverage establishments per 1,000 households: 5.5
2023 forecasted price growth: 9.0%
The nuclear powered aircraft carrier USS George Washington (CVN 73) passes downtown Norfolk, Va.

Portsmouth, Virginia

Metro: Virginia Beach, Virginia
Realtor.com median home list price as of November 2022: $239,000
2023 forecasted 25-34 year-old population share: 15.9%
2020 food and beverage establishments per 1,000 households: 5.5
2023 forecasted price growth: 5.1%
2022 rank: 5th
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