Portsmouth, VA ranked No. 1 on Realtor.com’s^® 10 Best Markets for First-Time Homebuyers in 2023

Beyond affordability, these 10 markets have many attractive features for first-time buyers – from nearby amenities to job opportunities.

Hampton Roads REALTORS® Association, Chesapeake, VA - Jan 20, 2023 – Portsmouth, VA, one of the market areas served by members of the Hampton Roads REALTORS® Association, has been ranked number 1 on the Realtor.com^® list of Top 10 best markets for first-time homebuyers in 2023.

To find the Best Markets for First-time Homebuyers, Realtor.com^® looked at a number of qualities that make a town attractive, including affordability, livability and where it might be easier for young buyers to break into the housing market.

The top 10 markets for first-time homebuyers in 2023 are:

1. Portsmouth, Va.,
2. DeForest, Wisc.,
3. Windsor Locks, Conn.,
4. Gloucester City, N.J.,
5. Moore, Okla.,
6. Magna, Utah,
7. Eggertsville, N.Y.,
8. Watervliet, N.Y.,
9. Mattydale, N.Y. and
10. Somersworth, N.H.

“The City of Portsmouth has long offered great real estate opportunities, and now the proverbial cat is out of the bag! As a Hampton Roads native, I’m proud to see one of the Seven Cities represented,” said Jeremy Caleb Johnson, 2023 Chairman of the Board of the Hampton Roads REALTORS® Association.

When he heard the news, Portsmouth Mayor Shannon E. Glover reacted, “As Mayor of the City of Portsmouth, Virginia, I am elated to see our city recognized as #1 on the list for First-Time Homebuyers in 2023. We continue to make Portsmouth a community where first-time homebuyers will choose to live, work and play. We are Portsmouth Proud of this outstanding recognition.”

What makes these towns great for first-time buyers? They have strong job markets, short commute times, plenty of places to eat and drink, a younger population, affordability, and more homes to choose from.

“The housing market will continue to be challenging for first-time buyers in the coming year, but 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 Realtor.com^® Chief Economist Danielle Hale. “Affordability is always a consideration for first-time buyers, but it’s also important to make sure that you’re settling down in a location that has all the qualities that make it an enjoyable place to live – after all, you’re not just buying a house, you’re investing in a community.”

This year’s best markets have:

• More homes to choose from: With inventory still near historic lows, having more homes to choose from can make a world of difference. Realtor.com^®’s best markets for first-time homebuyers have an average of 47.8 listings per 1,000 households, higher than the national rate of 45.2. Magna, Utah has the widest selection of listings per household on this year’s list.
• Short commutes: Typically, the farther from city centers, the cheaper the homes, but no one wants to spend all day commuting. This year’s top towns have an average expected commute time of just 24 minutes. This is significantly faster than the national average of 30 minutes–it would save 50 hours per year for a 5-day commuter. Those looking for an especially short commute should check out Eggertsville, N.Y., which has an average travel time of just 20 minutes.
• Options for food and drinks: Buying a house doesn’t need to mean giving up on a latte or an occasional meal out. The top towns have an average of 5.6 food and drink establishments per 1,000 households in their metro area, higher than the national rate of 5.3. Somersworth, N.H. topped the list for proximity to restaurants.
• Younger residents: When it comes to picking a new community, younger buyers are often drawn to younger towns. This year’s list has an average of 14.8% of residents in the 25-34 year age category, compared to the national average of 13.4%. Magna, Utah (which also made the 2022 list) tied Moore, Okla. as the youngest markets on the list.
• Affordability: With high home prices and interest rates, affordability is a key factor for first-time homebuyers. The best markets offer an average 2022 listing price to income ratio of 3.5 for 25-34 year-olds, much lower than the national rate of 5.1. Mattydale, N.Y. and Gloucester City, N.J. tied for the most affordable locations on the list.
• Strong housing markets: A home is an investment, and this is especially true for first-time buyers who are likely investing a large portion of their savings into a home. To help best protect that investment, it’s important to buy in a location that has a strong local housing market and is likely to hold its value, if not appreciate. This year’s markets are located within metro areas that have an average forecasted 2023 home sales growth rate of 1.2%, higher than the national rate which is expected to decline -14.1%. In terms of price growth, Somersworth, N.H. is located within the Boston metro area, which is expected to have the highest growth in 2023 among the 10 places on our list (+9.5%), followed closely by the Madison metro area containing DeForest, Wisc.(+9.0%).

Realtor.com^® 2023 Best Markets for First-Time Homebuyers

Home shoppers can visit Realtor.com^® to learn about the process, see if they might be eligible for down payment assistance and find out how much they can afford. Realtor.com^®’s Buying Power tool enables shoppers to save their personal information to their profile, so each home listing will show if it is “affordable,” “a stretch,” “difficult” or “out of reach” based on a shopper’s specific budget.

Methodology

Realtor.com^® ranked towns with an expected 2023 population of at least 5,000 residents. The inventory of homes for sale and local median listing prices are from Realtor.com^® December 2021 to November 2022 listing data and are reported at the city/place level. The cities and places are defined as postal codes mapped to Census Designated places and reflect approximate but not precise city or place boundaries. The population, household count, household income, and average commute time data were sourced from 2022 and 2023 Claritas estimates based on Census Bureau data. Population and household count numbers are at the city/place level but are also composed of mapped zip code data while household incomes and average commute times at the city/place level. The stated forecasted unemployment rates are Moody’s Analytics projections of U.S. Bureau of Labor Statistics Local Area Unemployment Statistics for each city/place’s surrounding metro area. Counts of food and beverage establishments are from 2020 County Business Patterns data and are also reported at the metro-level. The 2023 sales and price forecasts are Realtor.com^® projections for each city/place’s surrounding metro area as detailed in our 2023 Housing Forecast and Top Housing Markets for 2023 reports.

Hampton Roads REALTORS® Association, and its approximate 5,000 members, serve the entire Hampton Roads area. Our members stand on the REALTOR® Code of Ethics and are experts who stay steady, even when the market isn’t. The association continuously works toward protecting private property rights and promoting the American Dream of homeownership.