Purchasing a home is considered to be one of the most expensive transactions most Americans will make in their life, and breaking into the housing market can be very difficult for first-time buyers.

However, a new RealEstate.com analysis finds the typical first-time buyer earns more than the median household income, helping them afford to buy a home.

The median income for a first-time buyer is $72,500, compared with the national median household income of $60,700. The difference in income for first-time buyers is more pronounced when compared with their peers who didn’t buy, who have a median income of $42,500, according to the 2018 Zillow Group Report on Consumer Housing Trends.

Most buyers rely on savings to finance a down payment, but the second-highest source for a down payment comes from the proceeds from a previous home sale. Buyers entering the market for the first time don’t have this resource, though, so a higher income helps them set aside enough for a down payment, according to the report.

First-time home buyers tend to put down slightly smaller down payments, with a median down payment of 14.5 percent of a home’s price, rather than the traditional 20 percent down payment. By comparison, 58 percent of repeat buyers put down at least 20 percent. With this smaller down payment, first-time buyers earning the median income could afford to buy a $338,000 home, meaning they could buy about 68 percent of available homes, the report finds.

“Buying a home, especially for the first time, is a major step in a lot of people’s lives,” said Justin LaJoie, RealEstate.com general manager in a news release. “But with home prices climbing ever higher, and inventory yet to see sustained increases, getting a foot in the door is incredibly difficult for new buyers who can’t rely on selling another home to come up with a down payment.”

These are the markets where first-time buyers can afford the largest and smallest shares of listings:

Largest Share of Listings Affordable Smallest Share of Listings Affordable
Metropolitan Area Share Affordable Metropolitan Area Share Affordable
1. St. Louis, MO 83.7% 1. Los Angeles, CA 25.4%
2. Pittsburgh, PA 81.7% 2. San Jose, CA 28.4%
3. Hartford, CT 81.5% 3. San Diego, CA 30.4%
4. Buffalo, NY 80.7% 4. San Francisco, CA 34.1%
5. Oklahoma City, OK 79.7% 5. Miami, FL 39.7%

Zillow Group designed the RealEstate.com search experience to help first-time buyers trying to understand what they can afford with their monthly housing budget, it reports. Home shoppers can search RealEstate.com for homes based on the “All-In Monthly Price,” which lets people search based on their monthly budget and down payment savings amount. It includes mortgage payments, property taxes and utilities.

Metropolitan Area  Median First-
time Buyer
Income
Maximum
Price
Affordable to
Median First-
time Buyer
Share of
Homes
Affordable to
Median First-
time Buyer
United States $ 72,500 $ 338,100 67.7%
New York/Northern New Jersey $ 95,800 $ 446,800 41.3%
Los Angeles-Long Beach-Anaheim, CA $ 90,000 $ 419,600 25.4%
Chicago, IL $ 87,000 $ 405,800 72.0%
Dallas-Fort Worth, TX $ 88,600 $ 413,000 66.5%
Philadelphia, PA $ 88,000 $ 410,300 76.6%
Houston, TX $ 84,900 $ 396,000 70.1%
Washington, DC $ 132,500 $ 617,800 72.2%
Miami-Fort Lauderdale, FL $ 70,700 $ 329,800 39.7%
Atlanta, GA $ 86,700 $ 404,500 70.7%
Boston, MA $ 109,900 $ 512,500 52.0%
San Francisco, CA $ 133,200 $ 621,100 34.1%
Detroit, MI $ 73,800 $ 344,300 74.6%
Riverside, CA $ 79,100 $ 368,800 57.1%
Phoenix, AZ $ 79,200 $ 369,500 64.1%
Seattle, WA $ 107,900 $ 503,100 47.6%
Minneapolis-St Paul, MN $ 96,500 $ 450,200 73.3%
San Diego, CA $ 96,600 $ 450,800 30.4%
St. Louis, MO $ 78,700 $ 367,200 83.7%
Tampa, FL $ 70,700 $ 329,800 69.3%
Baltimore, MD $ 107,100 $ 499,300 77.6%
Denver, CO $ 98,400 $ 458,800 51.4%
Pittsburgh, PA $ 75,100 $ 350,400 81.7%
Portland, OR $ 94,100 $ 438,700 48.8%
Charlotte, NC $ 83,600 $ 390,000 71.8%
Sacramento, CA $ 87,200 $ 406,800 45.7%
San Antonio, TX $ 77,700 $ 362,200 73.4%
Orlando, FL $ 72,500 $ 337,900 63.4%
Cincinnati, OH $ 79,500 $ 370,600 78.1%
Cleveland, OH $ 68,500 $ 319,300 79.2%
Kansas City, MO $ 81,000 $ 377,600 72.4%
Las Vegas, NV $ 73,800 $ 344,200 55.3%
Columbus, OH $ 79,400 $ 370,300 71.2%
Indianapolis, IN $ 75,000 $ 349,700 73.3%
San Jose, CA $ 150,900 $ 704,000 28.4%
Austin, TX $ 99,200 $ 462,600 75.2%

Even if you are a first-buyer don’t despair there’s a home out there for you and your family just waiting for you to move in!