By all accounts, 2024 was a tough year for people in the market to buy their first home, with house prices at record highshigh interest rates and rising insurance costs are worsening America’s housing affordability crisis.

In fact, the share of first-time home buyers hit an all-time low last year, accounting for just 24% of purchases.

The market has been tough for prospective homebuyers, especially those looking to achieve the American dream for the first time. A new study reveals the best places to shop in 2025. (Justin Sullivan/Getty Images/Getty Images)

Still, demand is high, so for those still looking to make a purchase, Realtor.com recently posted annual report in which cities offer the brightest opportunities for those willing to take the leap into home ownership, and there have been changes from years past.

“More affordable markets, especially for first-time homebuyers, are starting to tilt further south,” said Joel Berner, senior economist at Realtor.com. FOX business.

DO YOU WANT TO BUY A HOUSE IN 2025? THIS IS WHERE MORTGAGE RATES WILL COME

He said that in last year’s rankings, the digital real estate group saw more Northeast and Midwestern markets in the mix, while this year, three of the top 10 were only in Florida.

“The Sun Belt was a major focus for buyers during the overheated post-pandemic market, but as these southern markets cool a bit, affordability is improving due to lower listing prices Berner explained.

Here are the best markets for first-time homebuyers in 2025, based on a combination of housing cost, availability of homes for sale and quality of location:

1. Harrisburg, Pennsylvania – Median list price $140,000

Harrisburg is the capital of Pennsylvania. (iStock/iStock)

2. Rochester, New York – Median list price $129,900

3. Villas, Florida: Median list price $236,950

4. Lauderdale Lakes, Florida – Median list price $154,850

TOP HOUSING MARKETS FOR 2025 REVEALED IN NEW FORECAST

5. Altamonte Springs, Florida – Median list price $229,400

6. Lansing, Michigan – Median list price $135,000

Aerial view of Lansing, Michigan (iStock/iStock)

7. North Little Rock, Arkansas – Median list price $160,000

8. Baltimore, Maryland – Median list price $210,000

MORTGAGE RATES ARE UP FOR THE FOURTH CONSECUTIVE WEEK, APPROACHING 7%

9. Tonawanda, New York – Median list price $229,900

10. Wilmington, Delaware – Median list price $222,000

Overlooking the Wilmington Riverfront from the Russell Peterson Wildlife Refuge, Wilmington, Delaware (Bo Shen/iStock)

While these may be the best places to buy a first home this year, Realtor.com recognizes that the current affordability crisis in the US is not expected to go away anytime soon.

GET THE FOX BUSINESS ANYWHERE CLICK HERE

“There will absolutely be affordability challenges in 2025,” Berner told FOX Business. “Our best hopes for affordability by 2025 remain to be seen increase in inventoryespecially smaller, more affordable homes, as builders respond to demand for affordable homes and homeowners who currently live in affordable homes make the move to upgrade.”