Indianapolis, Muncie rank among best US housing markets for first-time buyers
INDIANAPOLIS (WISH) — Indianapolis is one of the top cities for homebuyers to purchase their first homes, based on the findings of a new report.
Indianapolis wasn’t the only area ranked highly in the report: Muncie, Indiana, came in even higher at 14. At the top was Killeen, Texas, known for the Fort Hood military base.
To determine the best markets for first-time homebuyers, SmartAsset ranked 185 metro areas based on metrics measuring affordability, growth potential, competition and demographics. Indianapolis was found to be the 22nd best metro area for first-time homebuyers.
Ashley Farris-Rush with Highgarden Real Estate told News 8 on Tuesday’s “UnPHILtered,” “Besides that, Indianapolis is an amazing place to live. Across the United States, we are seeing supply and demand, so we are seeing supply is low in the homes that are listed, and the demand is high.”
“Over the last year or so rental rates have increased over 30%, and that can sometimes knock it out of the ballpark for somebody. Especially if you are seeing $300, $400, $500 for your rental increase but your wages stay the same, or you get a 1% or 2% increase (raise). It almost makes more sense to get into the housing market, get a mortgage and build equity,” Farris-Rush said.
Cities were ranked based on four metrics:
- Affordability, or the median sale price relative to median income.
- Growth potential.
- Competition, or median days to pending sales.
- Social, or the population aged 25-39 by the U.S. Census Bureau in 2021.
The study also found homes in Lexington, Kentucky; Cincinnati; and Fort Wayne, Indiana, are on the market for the shortest time. Lafayette, Indiana, and Indianapolis were among areas where homes were on the market five days or less.