If you're like many aspiring homeowners, the rising cost of living is likely a major obstacle. From groceries to gas, everything feels more expensive these days — and home prices are no exception.

But don’t worry, even in a market where costs are high, homeownership is still within reach. You may just need to shift your perspective on where to buy.

Think of Your First Home as a Launchpad

A common misconception is that your first home needs to be your forever home, or that it has to meet all your needs right from the start. In reality, your first home is simply a stepping stone.

By purchasing your first home, you start building equity, which grows as home values rise. Over time, this equity can help you upgrade to a larger space, better location, or both when you're ready to move. So, rather than waiting until you can afford your dream home, consider starting with something that works for you now.

Expand Your Search to Find More Affordable Options

If the high prices in your ideal neighborhood are holding you back, it might be time to broaden your search. By being flexible with location, you may find affordable options within your budget that you hadn’t considered. Many buyers discover hidden gems in surrounding areas – and some even choose to move out of state.

For example, according to Realtor.com, there are several markets that are ideal for first-time buyers this year (see chart below). Of course, moving to a new state isn’t for everyone, but it’s not necessary either. A good agent can help you find more affordable options within your current area.

If you’d prefer to stay local, consider looking just outside your desired neighborhood. Sometimes, moving even 10 minutes away can open up more affordable possibilities, while still keeping you close to your favorite spots.

Work with a Local Agent to Find Hidden Opportunities

The best way to find what’s available in your budget is to partner with a real estate agent who knows the local market. They can help you discover areas you might not have thought of, with lower prices now and potential for future growth. This way, you can start building equity right away.

Bottom Line

The current cost of living is a challenge, but with the right approach and guidance from a knowledgeable agent, homeownership is still possible. By exploring different neighborhoods, you can find a home that fits your budget while setting yourself up for future growth.

How far outside your desired area would you be willing to look to make homeownership a reality? Let’s connect and talk through your options.