Study finds Manhattan Kansas ranks among top metros for first-time homebuyers

Manhattan, Kansas is one of the nation’s top emerging housing markets for first-time homebuyers, according to a new study from Neighbors Bank that evaluated 97 midsized metropolitan areas on housing affordability, demand and economic growth.

The Manhattan metropolitan area ranked No. 9 overall, driven by strong employment growth and business expansion while maintaining home prices that remain relatively affordable compared with many larger markets.

The Top-Ranked Markets for First-Time Buyers

The study measured six factors: home price-to-income ratio, average home value, market demand, employment growth, wage growth and new business establishment growth. Researchers focused on metros ranked between the 100th and 400th largest in the United States, citing their combination of employment opportunities and housing availability.

In Manhattan, the average home value was $258,965, with a home price-to-income ratio of 3.68. The metro recorded a market heat index of 57.9, indicating buyer demand above the national average without reaching the most competitive levels included in the study.

Among all metros analyzed, Manhattan posted the strongest three-year employment growth at 41.8 percent. The area also led the rankings for new business establishment growth, increasing 43.3 percent during the same period. Average wages increased 15.8 percent.

Neighbors Bank said markets with expanding employment, rising wages and business growth may offer opportunities for first-time buyers even as the national housing market remains challenging because of elevated home prices and mortgage rates.

Nationally, Charleston, West Virginia, ranked first in the study, followed by Springfield, Illinois; Racine, Wisconsin; Janesville, Wisconsin; and Wausau, Wisconsin. Manhattan was the highest-ranked Kansas metro in the report.

Researchers based the rankings on Zillow housing data, U.S. Census Bureau income data and Bureau of Labor Statistics employment information. The composite score weighted affordability and housing demand most heavily, with additional consideration given to employment, wage and business growth.

CLICK HERE to view the original report.

PHOTO: Manhattan is a city in northeastern Kansas in the United States at the junction of the Kansas River and Big Blue River. (iStock-#1125701348 │ Denis Tangney Jr)