After the pandemic fueled bidding wars, the number of shoppers in the housing market has fallen. And although housing affordability is extremely challenging these days, some markets fare better than others for first time home buyers. Markets with relatively more affordable rent, less competition and higher inventory in the for-sale market in 2023 will provide the best opportunity for home buyers – especially those looking to acquire their first home. 

Zillow’s winter/spring 2023 list of the best markets for first-time buyers is based on four metrics: mortgage affordability, rent affordability, the inventory-to-buyer ratio which indicates available supply, and the share of listings with a price cut.  

Lower rent shortens the time it takes to save for a down payment. A higher number of active for-sale listings relative to the number of active shoppers means more options and higher bargaining power for potential home buyers in those markets.

1. Wichita, KS
   1. Typical rent payment as a percentage of income (as of 10/2022): 27%
   2. Typical mortgage payment as a percentage of income (as of 10/2022): 32%
   3. Years needed to save for a 10% down payment (at 2.4% savings rate): 19
   4. Estimated inventory to buyer ratio: 22 to 1
   5. Percent of listings with a price cut: 22%
2. Toledo, OH
   1. Typical rent payment as a percentage of income (as of 10/2022): 29%
   2. Typical mortgage payment as a percentage of income (as of 10/2022): 26%
   3. Years needed to save for a 10% down payment (at 2.4% savings rate): 15
   4. Estimated inventory to buyer ratio: 5 to 1
   5. Percent of listings with a price cut: 23%
3. Syracuse, NY
   1. Typical rent payment as a percentage of income (as of 10/2022): 36%
   2. Typical mortgage payment as a percentage of income (as of 10/2022): 30%
   3. Years needed to save for a 10% down payment (at 2.4% savings rate): 17
   4. Estimated inventory to buyer ratio: 4 to 1
   5. Percent of listings with a price cut: 19%
4. Akron, OH
   1. Typical rent payment as a percentage of income (as of 10/2022): 25%
   2. Typical mortgage payment as a percentage of income (as of 10/2022): 28%
   3. Years needed to save for a 8% down payment (at 2.4% savings rate): 16
   4. Estimated inventory to buyer ratio: 5 to 1
   5. Percent of listings with a price cut: 29%
5. Cleveland, OH
   1. Typical rent payment as a percentage of income (as of 10/2022): 31%
   2. Typical mortgage payment as a percentage of income (as of 10/2022): 30%
   3. Years needed to save for a 10% down payment (at 2.4% savings rate): 17
   4. Estimated inventory to buyer ratio: 6 to 1
   5. Percent of listings with a price cut: 27%
6. Tulsa, OK
   1. Typical rent payment as a percentage of income (as of 10/2022): 31%
   2. Typical mortgage payment as a percentage of income (as of 10/2022): 31%
   3. Years needed to save for a 10% down payment (at 2.4% savings rate): 18
   4. Estimated inventory to buyer ratio: 7 to 1
   5. Percent of listings with a price cut: 24%
7. Detroit, MI
   1. Typical rent payment as a percentage of income (as of 10/2022): 31%
   2. Typical mortgage payment as a percentage of income (as of 10/2022): 31%
   3. Years needed to save for a 10% down payment (at 2.4% savings rate): 18
   4. Estimated inventory to buyer ratio: 6 to 1
   5. Percent of listings with a price cut: 28%
8. Pittsburgh, PA
   1. Typical rent payment as a percentage of income (as of 10/2022): 33%
   2. Typical mortgage payment as a percentage of income (as of 10/2022): 30%
   3. Years needed to save for a 10% down payment (at 2.4% savings rate): 17
   4. Estimated inventory to buyer ratio: 6 to 1
   5. Percent of listings with a price cut: 28%
9. St Louis, MO
   1. Typical rent payment as a percentage of income (as of 10/2022): 27%
   2. Typical mortgage payment as a percentage of income (as of 10/2022): 31%
   3. Years needed to save for a 10% down payment (at 2.4% savings rate): 18
   4. Estimated inventory to buyer ratio: 4 to 1
   5. Percent of listings with a price cut: 25%
10. Little Rock, AR
    1. Typical rent payment as a percentage of income (as of 10/2022): 30%
    2. Typical mortgage payment as a percentage of income (as of 10/2022): 32%
    3. Years needed to save for a 10% down payment (at 2.4% savings rate): 19
    4. Estimated inventory to buyer ratio: 6 to 1
    5. Percent of listings with a price cut: 20%