Real estate listings website Realtor.com has ranked DeForest at No. 2 on its list of the 10 best markets for first-time homebuyers in 2023, it announced in a news release on Jan. 18.
As affordability continues to be a hurdle in the wake of the COVID-19 pandemic, first-time buyers may need to be flexible in order to land a house in the coming year and look to unexpected markets such as DeForest, the website stated.
“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,” Realtor.com’s Chief Economist Danielle Hale said in the news release.
To determine its list of the top 10 best markets for first-time homebuyers, Realtor.com explored several factors that make a town attractive including affordability, livability, and where it might be easier for young buyers to break into the housing market.
DeForest shared a spot on the list with: Portsmouth, Virginia; Windsor Locks, Connecticut; Gloucester City, New Jersey; Moore, Oklahoma; Magna, Utah; Eggertsville, New York; Watervliet, New York; Mattydale, New York; and Somersworth, New Hampshire.
The 10 markets on the list had a higher number of homes to choose from than the national rate. The selections have short commutes with an average expected commute time of 24 minutes, better than the national average of 30 minutes.
The communities have ample options for food and drinks with an average of 5.6 food and drink establishments per 1,000 households in the metro area.
The choices also have younger residents, with an average of 14.8% of residents in the 25- to 34-year-old age category, compared to the national average of 13.4%.
The selections were picked for affordability, with a listing price to income ratio of 3.5 for 25- to 34-year-olds, lower than the national rate of 5.1.
Strong housing markets were also considered, where a home 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 by 14.1%. The Madison metro area containing DeForest is expected to grow by 9%.
The website’s methodology for determining this list of top 10 markets for first-time homebuyers included the inventory of homes for sale and local median listing price data from December 2021 to November 2022 in communities with an expected population of at least 5,000 residents in 2023.
The population, household count, household income, and average commute time data were sourced from 2022 and 2023 estimates based on U.S. Census Bureau data.
Forecasted unemployment rates are Moody’s Analytics projections of U.S. Bureau of Labor Statistics local area unemployment statistics for each community’s surrounding metro area.
Counts of food and beverage establishments are from 2020 County Business Patterns data. The 2023 sales and price forecasts are Realtor.com projections for each community’s surrounding metro area.
