Entering the Housing Market: Smart Actions for First-Time Buyers

Like many eager home buyers, you might have a significant obstacle in front of you: the cost of living.  Prices have increased all around, from groceries, gasoline, and almost everything else. Unfortunately, it also applies to the housing prices.

Still, there are methods to make homeownership more than just something on your wish list, even if everything seems costly. You might simply have to consider some new plans.

Use Your First Home as a Stepping Stone

Some first-time homebuyers have the misunderstanding that their first house must be their lifetime residence or that it must satisfy all their needs right from the start.  A first home can be just the beginning point of their homeownership journey.

Once you own a house, you begin to create equity—which increases gradually as house values rise. The equity you have built up will enable you to upgrade later, whether to a better location, a place with more room to roam, or both.

It might be time to think about beginning with something that fits now instead of waiting until you can afford your dream home.

Extend Your Search Area To Discover More Reasonably Priced Homes

You should widen your search if the price of homes in your chosen neighborhood or area is preventing you from moving forward. Keeping an open mind by being open to different locations will help you see what is currently doable within your means. Looking at the nearby neighborhoods or even at the next city, town, or village helps many buyers find success; others even decide to relocate outside of their state.

Here are some of the top markets throughout the U.S. for first-time home buyers this year, according to a Realtor.com analysis (Hale & Berner, 2025). See the chart below:

Moving to a different state is not something that suits everyone, of course. No matter where you are and where you plan on living, the right agent can help you find the best deals.

Looking just beyond the area you really want to live in might help you to locate that affordable house that is still near your favorite parks, restaurants, stores, and local events. Sometimes a short ten minutes away can make a significant difference.

Working with a real estate agent who knows the local market and can assist you in finding hidden treasures (sometimes only by targeting off-market properties) close by can be a huge asset to you. An agent might refer you to neighborhoods you might not have thought about as having cheaper homes now but are rapidly becoming more valuable and appealing. This will help you to purchase your first house and set you in position to increase equity over time.

Final Thoughts

For many home buyers, today's cost of living creates some difficult decisions. However, you can start creating equity for your future after you purchase that first home. You might just have to start this path of homeownership by looking at several locations and collaborating with an experienced real estate agent.

How far outside your chosen neighborhood would you search in order to become a future homeowner? Let's connect and check out some options!

References

Hale, D., & Berner, J. (2025, January 16). The Best Markets for First-Time Homebuyers in 2025. Realtor.com Economic Research. Retrieved from https://www.realtor.com/research/first-time-homebuyer-markets-2025/