Real Estate News

Bankrate ranks states for new home purchases

Published: 13 Mar 2017

Though mortgage rates can determine home buying activity, there's more to a region's housing market than just one statistic. Bankrate recently ranked the 50 states based on which would be the easiest or most difficult to buy a new home in. Unlike other similar studies of these metrics, this seems to be a more general survey that used credit availability, housing prices and the local job market to determine the answer.

Based on all of these different categories, the source found Iowa to be the top state for new home buyers. This state ranked just .16 points above the second-place state, Utah, overall. However, in terms of housing affordability, Iowa was far ahead of Utah, with the latter four whole points under the Hawkeye State. At the very bottom of the list was California, which placed 13.67 overall, though Hawaii scored a 0 for both affordable housing and millennial ownership.

Bankrate also quoted Urban Institute Metropolitan Housing and Communities Policy Center co-Director, Rolf Pendall, about the reasons for California's low placement in particular.

"When you have a state like California where the housing prices are really high and the rental housing is also really expensive, unless you have access to wealth from some source that's not your job, it's going to be really hard for you to amass enough of a down payment, and also the kind of credit that you need to get into the housing market," Pendall said.

However, other sources tell a different story about the best markets. Forbes and Local Market Monitor recently ranked Dallas the highest on a list that specifically focused on cities for 2017. The source said that Dallas surged ahead of the pack several spots after its 2016 ranking, but that its placement was based on different criteria to the Bankrate study: this was focused more on which ones will gain the most value over the next three years, as well as a population growth rate above 6 percent.