MN 1st-Time Homebuyers Delaying Decisions, Even in Affordable Markets

First-time homebuyers in Minnesota are facing an affordability crisis that some research suggests is causing them to delay major milestones such as marriage and having children while they save money to buy a house.

There are a handful of markets where buying a starter home is more attainable this year, according to a new report from Realtor.com. The analysis identifies cities that balance home price affordability, inventory availability, local amenities and economic health — offering promising opportunities for aspiring homeowners in 2026.

In Minnesota, those markets include St. Louis Park, where the median list price for a home is $375,000.

"St. Louis Park is kind of the best of both worlds," Kerby Skurat, lead agent with Re/Max Results, told Realtor.com. "Skurat tells Realtor.com. "You’re five to 10 minutes from downtown Minneapolis, but it still feels like a real neighborhood with parks, trails, coffee shops, and a strong community feel. It’s easy to get around, easy to live in, and it appeals to a wide range of people, from young professionals to growing families, because it’s convenient without feeling hectic."

Ranked from 1 to 10, these cities include:

1. Rochester, New York
2. Harrisburg, Pennsylvania
3. Granite City, Illinois
4. Birmingham, Alabama
5. North Little Rock, Arkansas
6. Syracuse, New York
7. Baltimore
8. St. Louis Park, Minnesota
9. Pittsburgh
10. Garfield Heights, Ohio

A Coldwell Banker report last November found that about 71 percent of Gen Z, those born between 1997 and 2012, have postponed at least one major life decision, such as marriage and having kids, because they’re saving to buy a home.

Almost all of those surveyed said they want to buy a home, but also that high home prices and elevated mortgage rates make it tough. More than half (53 percent) said they don’t expect to buy their first home until age 40 or older, suggesting milestones like starting families could be pushed back even further until homeownership is achieved.

Another report, from Redfin.com, said the median age for first-time home purchases in 2025 was 35, down from 36 last year and 38 in 2018. Redfin said its findings skew younger than those of the National Association of Realtors, which reported the median age of a first-time homebuyer as 40. The difference is due to methodology and data sources.

Both Redfin and NAR’s findings point to the same long-term trend: Americans are buying homes later in life than they did a decade ago or two decades ago, even if the exact median age varies depending on how it’s measured.

A home is generally considered affordable if the monthly mortgage is 30 percent or less of the buyer’s monthly income. Based on median prices and incomes for 25- to 34-year-olds in the 10 ranked markets, the calculation assumes a 6.25 percent rate on a 30-year fixed mortgage with a 10 percent down payment, showing the share of income a buyer would spend on a median-priced home, according to the Realtor.com.

Realtor.com analysts said the report underscores a shift toward more affordable markets in the Northeast, Midwest and parts of the South, while the Western U.S. remains largely absent from the top rankings due to relatively higher prices and slower price growth.

Those markets stand out because they marry relatively low median listing prices with local economic opportunity, community amenities, and housing availability — critical factors for homebuyers taking that first step toward homeownership.

“Home buying is expensive and difficult,” said Joel Berner, a Realtor.com senior economist. “Choosing where to buy your first home is an essential step toward building wealth and achieving your desired lifestyle.”