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The 12 best states for first-time home buyers

Kathleen Elkins
The 12 best states for first-time home buyers

Owning a home costs more each month than renting across all 50 states. That being said, depending on your situation, buying a home can be a smart investment.

After all, self-made billionaire Warren Buffett says that real estate is a valuable asset "for a great many people." Some experts even go as far as saying that not prioritizing homeownership is "the single biggest mistake millennials are making."

If you want to get in the game, consider looking in the best states for first-time buyers, as determined by personal finance site GOBankingRates in a recent report. The site ranked all 50 U.S. states based on foreclosure rates, the share of the market represented by first-time home buyers and the median listing price for homes.

Here are the top 12 states for first-time home buyers.


12. Missouri

Share of the market represented by first-time home buyers: 57 percent
Median listing price: $158,900


11. Virginia

Share of the market represented by first-time home buyers: 57 percent
Median listing price: $288,000


10. New Mexico

Share of the market represented by first-time home buyers: 57 percent
Median listing price: $209,900


9. Minnesota

Share of the market represented by first-time home buyers: 52 percent
Median listing price: $239,900


8. Georgia

Share of the market represented by first-time home buyers: 56 percent
Median listing price: $212,900


7. Alaska

Share of the market represented by first-time home buyers: 52 percent
Median listing price: $270,000


6. Pennsylvania

Share of the market represented by first-time home buyers: 59 percent
Median listing price: $185,000


5. New York

Share of the market represented by first-time home buyers: 65 percent
Median listing price: $359,000


4. Michigan

Share of the market represented by first-time home buyers: 54 percent
Median listing price: $152,000


3. Mississippi

Share of the market represented by first-time home buyers: 54 percent
Median listing price: $165,000


2. West Virginia

Share of the market represented by first-time home buyers: 52 percent
Median listing price: $149,900


1. Rhode Island

Share of the market represented by first-time home buyers: 67 percent
Median listing price: $279,900

Don't miss: Self-made millionaire: Not buying a home is the single biggest millennial mistake