According to Zillow, first-time homebuyers will account for half of all homebuyers in St. Louis by 2023. This is the highest rate in the city since at least 2017.
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Zillow said first-time homebuyers, who face the dual challenges of high mortgage rates and low inventory, have had the most success in St. Louis.
A new report from a listing search portal finds that first-time homebuyers will account for half of all homebuyers in the Midwestern city in 2023, the highest share in the city since at least 2017.
St. Louis’s affordable housing prices have greatly contributed to its popularity among first-time homebuyers—the median sales price is just $178,118, according to the data Zillo Compared to the national median $324,967. According to the Zillow report, this means that 66.7% of listings in St. Louis can be defined as “affordable.”
First-time homebuyers in St. Louis also benefit from relatively low competition based on age demographics. Zillow research puts the typical first-time homebuyer age range at 29 to 43 years old, but only about 26% of households fall into that age range.
Zillow’s second-largest first-time homebuyer market – Detroit – also scores highly for affordability, with a median sales price of just $78,983 and a 63.6 percent affordable housing ratio. According to Zillow data, 57.7% of homes sold there are sold at list price.
While first-time homebuyers face serious challenges, they are doing everything they can to secure ownership.According to Zillow, 50% of national home sales in 2023 will go to first-time homebuyers Consumer Housing Trends That’s up from a low of 37% in 2021, the report said. As interest rates remain high and homeowners continue to enjoy lower rates, most potential repeat buyers are on the sidelines, creating a market flooded with first-time homebuyers.
“Buying a home is a difficult mountain to climb, especially steep for those buying their first home. Headwinds such as mortgage rates, low inventory and rising rents remain strong but are easing,” Zillow senior economist Orphe Divounguy said.
“An increase in the number of new listings coming to the market this spring due to new construction and more homeowners choosing to sell will provide buyers with more choices and help moderate price growth. The housing train is slowing enough to allow more More first-time buyers will have the opportunity to get on board.”
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