Real Estate Rankings

Houston declared No. 3 best real estate market for first-time homebuyers

Houston is the third best market for first-time buyers.

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Saving up for a down payment is tough — especially if you're single — but Texas seems to be a little more forgiving to first-time homebuyers.

Zillow ranked the 35 largest U.S. housing markets to determine the best for first-time buyers, and three Texas cities make it to the top 10. The real estate website looked at things such as affordable homes with little buyer competition and strong forecasted home value appreciation.

The highest ranking is No. 3 Houston, thanks to a proliferation of price cuts (16.7 percent of all listings here had at least one) and a strong inventory of available homes (26,275 as of January 2018). A healthy population growth of 1.7 percent, coupled with Zillow's forecasted home value growth of 2.7 percent, certainly makes H-Town a desirable city for first-timers.

Coming in at No. 5 is San Antonio, where a growing population can expect a sizable amount (18.8 percent) of the 8,036 currently available homes to have had a price cut. The Zillow Breakeven Horizon, the time it takes for buying to be financially advantageous compared to renting, isn't spectacular at two years, but the real estate website's Home Value Index is an affordable $169,300.

Dallas squeaks in at No. 10 with a Zillow Home Value Index of $220,900. Prospective homebuyers can expect price cuts on 15.4 percent of local listings, and the Breakeven Horizon in Big D is better than Alamo City: only one year and eight months.

Of all homebuyers, Zillow has found that 42 percent are jumping into real estate for the first time. Where should those newbies be looking? Tampa (1), Indianapolis (2), and Orlando (4) join Houston and San Antonio in the top five. Philadelphia (6), Atlanta (7), Las Vegas (8), and St. Louis (9) come in ahead of Dallas.

Surprising no one, metro California cities are the most difficult in which to buy your first home.

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bang for your buck

These are the 6 most affordable ZIP codes for Houston renters

Facebook / City of Bellaire, Texas

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Trying to afford buying a home in Houston is difficult enough with current mortgage rates, and doubly so if you're already paying high rent on an apartment or a house. But there are six Houston ZIP codes where renters can get the most bang for their buck, according to a new study by financial services company CashNetUSA.

To find the most affordable ZIP codes to rent in the U.S., analysts compared median household incomes by ZIP code to the average annual rent costs using the Zillow Observed Rent Index. ZIP codes where the average annual rental costs required the lowest percentage of median household income were considered the "most affordable."

Two Houston-area ZIP codes specifically stood out in CashNetUSA's ranking of the most affordable ZIP codes for renters in America: 77401 in Bellaire (No. 9) and 77094 in the Energy Corridor (No. 12).

According to the study's findings, the average monthly cost of a rental in Bellaire comes out to $2,401.25, and the median annual income of a Bellaire household is $210,577. Analysts then calculated that the annual rent of a home in the Bellaire ZIP code only takes up 13.68 percent of a household's median income, which is the ninth-lowest in the nation.

But as Houstonians know all too well, Bellaire residents aren't exactly struggling to pay their rent, seeing as they live in one of the wealthiest places in America.

Meanwhile in Houston's 77094 ZIP, annual rent costs only represent 13.88 percent of a household's median annual income. The area – which encompasses the Kingsland Estates, Green Trails, Green Trails Oaks, Windsor Park Estates, Windsor Park Lakes, and Barker neighborhoods – has a median household income of over $168,000, and average rent costs add up to $1,944.58, according to the study.

CashNetUSA found the No. 1 most affordable ZIP code for renters nationwide is 66224 in Leawood, Kansas, where annual rent only takes a 10.57 percent cut out of a household's median annual income.

Elsewhere in Texas, San Antonio's 78248 ZIP ranked as the No. 4 most affordable ZIP code for renters in the U.S., and the No. 1 most affordable ZIP code statewide. The North Texas ZIP code 75013 in Allen ranked two spots behind Houston to claim the No. 14 spot nationally.

The most affordable Houston ZIP codes for renters
CashNetUSA further unveiled the five most affordable ZIP codes across major U.S. cities, including in Houston, Austin, and San Antonio.

Following 77094 (which took the No. 1 spot citywide) is 77008 (No. 2), which spans Greater Heights, Houston Heights, Shady Acres, and Lazybrook/Timbergrove. Rent costs in this ZIP code averaged out to $1,856 per month, the report found.

Landing in the No. 3 spot is 77024, which includes four of Houston's historic Memorial Villages, including Hedwig, Bunker Hill, Hunters Creek, and Piney Point. The report said average rent in the area comes out to $1,730 per month, which takes up 16.88 percent of a household's median annual income.

The remaining top two most affordable ZIP codes for Houston renters are located in 77007 (Washington Avenue Coalition/Memorial Park, Rice Military, and Crestwood/Glen Cove) and 77345 in Kingwood, which is about 30 miles north of downtown Houston.