“We believe Millennials are the driving force in household formation, finally rotating toward homeownership and away from renting,” Wells Fargo Securities Head of RMBS Research Vipul Jain said in a statement. “In our view, the lack of supply to meet this demand will remain a key driver for the housing market in 2019 and should provide support for home prices.”
Luckily, LendingTree recently released a report revealing the best U.S. cities for first-time homebuyers.
According to the company's data, the top metros offer first-time homebuyers low down payment percentages and allow them to save big on FHA mortgages.
LendingTree discovered that Pittsburgh was the No. 1 metro in the country for first-time buyers, with the average down payment amounting to $34,049.
The company calculated this ranking by comparing the metros average credit score and down payment percentage, deeming it the easiest city for first-time buyers to purchase a home.
“Down payments are usually a major hurdle for first-time homebuyers to overcome, as many struggle to come up with the amount of cash necessary to make a down payment,” LendingTree writes. “The lower the down payment is, the easier it is to afford a home.”
Notably, Cleveland and Oklahoma City followed closely behind with down payments amounting to $34,049 and $32,775, respectively.
Not surprisingly, several Californian metros were listed amongst the most difficult metros for first-time buyers to purchase homes. In fact, Los Angeles was named the toughest metro, with a down payment totaling $95,418. Residents living in Denver and San Francisco were also challenged, with down payments reaching $74,317 and $128,627, respectively.
The image below shows which metros are the best for first-time buyers:
(Click to enlarge)
NOTE: LendingTree scored cities based on factors including average down payment, average credit score, average FHA down payment and more.