Editor's Note: This story originally appeared on Construction Coverage.
The American dream of homeownership often begins with a starter home — a manageable property that allows young adults and families to establish roots, build equity, and lay the groundwork for financial security.
This initial step on the property ladder fuels the housing market and strengthens the economy by creating a generation of invested homeowners.
However, finding an affordable starter home has become increasingly challenging in recent times. With historically low levels of inventory at entry price points, homeownership in the U.S. has become an uphill battle.
While conditions are challenging overall for new buyers, some parts of the U.S. are more favorable than others. To determine the best places to find a starter home in the U.S., researchers at Construction Coverage calculated a composite score based on home data.
The following is a breakdown of the best major cities to find a starter home. For more information on the analysis, see the methodology section at the end.
15. Jacksonville, FL
- Composite score: 47.3
- Percentage of homes that are starter-size: 65.3%
- Starter-size mortgage payment as a share of renter income: 34.7%
- Median price of starter-size homes: $295,565
- Months supply: 4.6
- Homeownership rate for under-35 householders: 39.6%
14. Buffalo-Cheektowaga, NY
- Composite score: 48.5
- Percentage of homes that are starter-size: 70.8%
- Starter-size mortgage payment as a share of renter income: 35.2%
- Median price of starter-size homes: $237,819
- Months supply: 1.3
- Homeownership rate for under-35 householders: 38.3%
13. Memphis, TN-MS-AR
- Composite score: 48.7
- Percentage of homes that are starter-size: 62.0%
- Starter-size mortgage payment as a share of renter income: 27.8%
- Median price of starter-size homes: $185,963
- Months supply: 3.6
- Homeownership rate for under-35 householders: 28.6%
12. Rochester, NY
- Composite score: 48.8
- Percentage of homes that are starter-size: 69.6%
- Starter-size mortgage payment as a share of renter income: 30.5%
- Median price of starter-size homes: $229,993
- Months supply: 1.0
- Homeownership rate for under-35 householders: 37.3%
11. Cleveland, OH
- Composite score: 49.2
- Percentage of homes that are starter-size: 67.2%
- Starter-size mortgage payment as a share of renter income: 31.7%
- Median price of starter-size homes: $199,934
- Months supply: 2.0
- Homeownership rate for under-35 householders: 39.4%
10. Louisville-Jefferson County, KY-IN
- Composite score: 50.5
- Percentage of homes that are starter-size: 70.6%
- Starter-size mortgage payment as a share of renter income: 38.3%
- Median price of starter-size homes: $245,901
- Months supply: 2.0
- Homeownership rate for under-35 householders: 47.0%
9. St. Louis, MO-IL
- Composite score: 52.3
- Percentage of homes that are starter-size: 69.4%
- Starter-size mortgage payment as a share of renter income: 30.8%
- Median price of starter-size homes: $232,230
- Months supply: 1.9
- Homeownership rate for under-35 householders: 43.8%
8. San Antonio-New Braunfels, TX
- Composite score: 53.8
- Percentage of homes that are starter-size: 64.5%
- Starter-size mortgage payment as a share of renter income: 28.4%
- Median price of starter-size homes: $230,632
- Months supply: 5.0
- Homeownership rate for under-35 householders: 35.1%
7. Miami-Fort Lauderdale-Pompano Beach, FL
- Composite score: 55.6
- Percentage of homes that are starter-size: 76.0%
- Starter-size mortgage payment as a share of renter income: 47.1%
- Median price of starter-size homes: $432,906
- Months supply: 7.6
- Homeownership rate for under-35 householders: 30.1%
6. Tampa-St. Petersburg-Clearwater, FL
- Composite score: 56.1
- Percentage of homes that are starter-size: 72.6%
- Starter-size mortgage payment as a share of renter income: 35.6%
- Median price of starter-size homes: $320,405
- Months supply: 3.9
- Homeownership rate for under-35 householders: 33.3%
5. Oklahoma City, OK
- Composite score: 57.3
- Percentage of homes that are starter-size: 69.5%
- Starter-size mortgage payment as a share of renter income: 29.1%
- Median price of starter-size homes: $207,619
- Months supply: 3.0
- Homeownership rate for under-35 householders: 33.7%
4. Tulsa, OK
- Composite score: 58.7
- Percentage of homes that are starter-size: 69.9%
- Starter-size mortgage payment as a share of renter income: 30.0%
- Median price of starter-size homes: $209,286
- Months supply: 2.7
- Homeownership rate for under-35 householders: 38.4%
3. Detroit-Warren-Dearborn, MI
- Composite score: 58.9
- Percentage of homes that are starter-size: 71.6%
- Starter-size mortgage payment as a share of renter income: 34.1%
- Median price of starter-size homes: $236,999
- Months supply: 2.1
- Homeownership rate for under-35 householders: 48.9%
2. Birmingham-Hoover, AL
- Composite score: 59.2
- Percentage of homes that are starter-size: 66.3%
- Starter-size mortgage payment as a share of renter income: 29.5%
- Median price of starter-size homes: $195,659
- Months supply: 3.5
- Homeownership rate for under-35 householders: 44.8%
1. Pittsburgh, PA
- Composite score: 71.8
- Percentage of homes that are starter-size: 72.7%
- Starter-size mortgage payment as a share of renter income: 28.3%
- Median price of starter-size homes: $191,776
- Months supply: 3.3
- Homeownership rate for under-35 householders: 42.5%
Methodology
To determine the best locations to find a starter home in the U.S., researchers at Construction Coverage analyzed the latest data from the U.S. Census Bureau’s 2023 American Community Survey, Zillow’s Housing Data, Redfin’s Data Center, and Freddie Mac’s Primary Mortgage Market Survey.
The researchers ranked locations according to a composite score comprising the following factors and weights:
- Percentage of owner-occupied homes with three or fewer bedrooms (40%)
- Monthly mortgage payment for homes with three or fewer bedrooms as a percentage of median renter income (20%)
- Median sale price of homes with three or fewer bedrooms (15%)
- Months supply (15%)
- Homeownership rate for under-35 householders (10%)
The monthly mortgage payment as a percentage of income was calculated using a 20% down payment for the median home sale price for three or fewer bedroom homes, a 6.76% interest rate, and the median monthly renter-occupied household income.
Median home sales prices and months supply data were from March 2024, the latest data available.
In the event of a tie, the location with the larger percentage of homes with three or fewer bedrooms was ranked higher.
Add a Comment