REVEALED: The top markets for first-time buyers this year (and half of them are in the Midwest)

St Louis has been named as the prime destination for Americans hunting for their first home. 

The Missouri city is the best market this year for first-time buyers - since their dollars will go further and there is a wider availability of affordable homes.

Of the top ten markets named in the new analysis from homes selling site Zillow, half are in the Midwest - including Detroit, Minneapolis, Indianapolis and Kansas City. 

First-time buyers accounted for half of all home buyers last year, according to Zillow - the highest share since at least 2017. 

High mortgage rates last year meant that many homeowners were incentivized to stay put because of the low rate on their current mortgage - which kept some would-be repeat buyers on the sidelines. 

Alongside the Midwestern cities, Austin, Pittsburgh, San Antonio, Birmingham and Baltimore also made the list of the best markets for people looking to get onto the property ladder. 

Zillow ranked the best markets for first-time buyers on rent affordability, the share of for-sale listings a typical household can comfortably afford, how stiff the competition is expected to be for those affordable listings, and how many similar-age households live in the area.

The study looked into rental affordability as a way to judge how easy it would be for prospective buyers to build up savings for a down payment.

Unlike some similar studies, Zillow did not look into average salaries in the area as a basis for the affordability of certain markets.  

The top two markets in Zillow's ranking - St Louis and Detroit - scored well in terms of affordability, both in terms of rent and the number of affordable homes available to buy. 

Austin, meanwhile, although not the most affordable market on the list, ranks first for the number of similar-age households living there, with which a buyer could build a community. 

House prices in Austin boomed during the pandemic, as its sunny climate, expansive state parks and relative affordability attracted an influx of buyers. 

The Texan city came to be seen as the epitome of the Sunbelt's hot housing market, but house prices are now on the decline.

'Affording a home is a tough hill to climb, and it's especially steep for those buying their first home, said Zillow Senior Economist Orphe Divounguy. 

'Headwinds like mortgage rates, low inventory and rising rents are still strong, but easing.

'The increase in new listings this spring, due both to new construction and to more homeowners choosing to sell, will give buyers more options and help to ease price growth. 

'The housing train is slowing down just enough to give more first-time buyers an opportunity to hop on board,' he added.

First-time buyers need to be aware of financial hurdles including how their credit score can impact their loan options and costs, and how much they need to save up for a down payment. 

While a typical down payment tends to be 20 percent, Zillow points out that those who have not saved enough should not think this writes them off from purchasing their first home.

Separate analysis from the real estate marketplace shows that nearly half of buyers last year put down less than 20 percent.

While home sales and inventory climbed in February, according to the National Association of Realtors, high mortgage rates and property prices mean many Americans are still facing affordability challenges. 

According to latest data from government-backed lender Freddie Mac, the average 30-year fixed mortgage is hovering around 6.82 percent. 

Last year, the housing market gained a huge $2 trillion in value, amid a historic shortage of homes for sale.

And in the last two years, the housing market has gained $5.6 trillion, according to Redfin, pricing many Americans out of the market.