Where Are the Most Affordable Housing Markets for First-Time Buyers?

Many first-time homebuyers struggle when searching for an entry-level home, especially with the current affordable housing shortage. But in these 12 most affordable housing markets, the largest share of homes are within reach for budget-conscious buyers. And, according to National Mortgage News, the choices are nothing to sneeze at: living in one of these cities means you can either easily catch a Cubs game in Chicago, see whale sharks in Atlanta, Georgia, or watch the Kentucky Derby live every May in Louisville, Kentucky.

The barriers to homeownership begin with a lack of affordability, mostly stemming from the dearth of starter level houses. Because of this, the rate of first-time homebuyers lags repeat purchasers.

However, some markets offer more opportunity for median-income consumers to purchase a property in their price range.

"While expensive markets like San Francisco, Los Angeles and Boston are attractive destinations for many reasons, there are attractive alternatives for millennial first-time homebuyers," Odeta Kushi, deputy chief economist at First American, said in the report. "Smaller cities such as Oklahoma City, Louisville, Ky., or Memphis, Tenn., are 'affordability friendly' because the median renter's house-buying power in these cities allows first-time home buyers to consider a much larger selection of homes to buy."

From Middle American to the Midwestern plains, here's a look at the 12 cities where first-time homebuyers can afford the largest share of houses for sale, according to First American Financial Corp.

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