Connect with us

Hi, what are you looking for?

The American Genius Real EstateThe American Genius Real Estate


The 10 best states for first time homebuyers

In an effort to find the best places for first time homebuyers , GoBankingRates studied the growth in the number of new homeowners versus foreclosures.

Despite the recent recession, real estate purchases by first time homebuyers are on the rise. According to the National Association of Realtors, 32 percent of home purchases came from first-timers in May 2015, and those numbers will continue to climb. Lawrence Yun, chief economist for NAR said this “encouraging sign” was the result of “strong job gains among young adults, less expensive mortgage insurance and lenders offering low down payment programs.”

To find out where hopeful first time homebuyers will find the most favorable and affordable housing conditions, GoBankingRates, a banking advice site, studied the growth in the number of new homeowners as well as the percentage of foreclosures from 2003 to 2013, state by state.

The top ten best states for first time homebuyers are as follows (drumroll, please!):

10.) Arizona
9.) Maine
8.) Wyoming
7.) Washington D.C.
6.) Hawaii
5.) Massachusetts
4.) Vermont
3.) Rhode Island
2.) New Hampshire
1.) West Virginia

Six of the top ten best states are located in the Northeast, with Arizona as the only Western state that made it into the ranking.

How these states were ranked

In order to land a high ranking, a state had to show significant growth in the number of new home owners, while also maintaining a low rate of foreclosure. GoBankingRates also compared median home values with median rents. In all locations except Washington D.C., mortgage payments for homeowners were lower than monthly rent payments. Washington D.C. also had the highest median housing prices, reserving home purchases for the wealthiest first time buyers. However, D.C. also boasts one of the lowest foreclosure rates at 0.01 percent.

Advertisement. Scroll to continue reading.

GoBankingRates also examined public assistance programs. Most states offer program for first time homeowners such as low-interest financing, assistance with down payments and closing costs, tax credits, and affordable mortgage insurance. Notable exceptions are Hawaii and Arizona, who offer little in the way of public assistance programs, yet continue to attract a healthy number of first time homeowners.

Let’s hear from some Realuso readers living and working in these high ranking states. What makes your state a great place for a new homeowner?

Ellen Vessels, a Staff Writer at The American Genius, is respected for their wide range of work, with a focus on generational marketing and business trends. Ellen is also a performance artist when not writing, and has a passion for sustainability, social justice, and the arts.


The Daily Intel
in your inbox

Subscribe and get news and EXCLUSIVE content to your email inbox.



Real Estate Big Data

You don't have to be a master gardener to know that curb appeal impacts a home sale - let's talk about what to avoid.


It may come as a shocking fact that almost half of the young adults in the US choose to continue to reside with their...


Real estate scams continue to victimize people, but Realtors are in a position to better protect homebuyers. Here are some tips.


It’s no coincidence that the most exciting areas of our country are also the most diverse.

The American Genius' real estate section is honest, up to the minute real estate industry news crafted for industry practitioners - we cut through the pay-to-play news fluff to bring you what's happening behind closed doors, what's meaningful to your practice, and what to expect in the future. We're your competitive advantage. The American Genius, LLC Copyright © 2005-2022