10 US Metros Where Harris’ $25K Down Payment Proposal Would Go Furthest for First-Time Homebuyers

Aspiring homebuyers are getting at least some good news in the form of cooling home values and the high likelihood of the Fed cutting interest rates.

However, middle-class buyers are still facing the daunting obstacles of elevated prices and expensive mortgages — a fact that Kamala Harris has made a centerpiece of her campaign. Among the vice president’s policy proposals is $25,000 in federal down payment assistance for qualifying first-time homebuyers.

Advocates say it could help level the playing field and open the ranks of homeownership to many who are currently priced out of the market. The plan’s detractors argue it will only send prices higher by fueling demand when supply can’t keep up.

While analysts and advocates can disagree, one thing is certain — $25,000 means different things in different markets. Using data from Realtor.com, GOBankingRates identified the 10 metros where Harris’s plan would go the furthest, keeping in mind that a 10% down payment is widely considered a healthy benchmark for first-time homebuyers.

• Average 2024 median list price: $171,000
• Percentage down with $25,000: 14.6%

According to Rocket Homes, Charleston is a seller’s market, with average sale prices up over 12% compared to this time last year. Smaller homes are in the highest demand, with one-bedroom properties selling for 31% more year over year.

• Average 2024 median list price: $178,000
• Percentage down with $25,000: 14.1%

Redfin ranks Peoria’s housing market as “very competitive,” with prices up by 27.4% over last year. The number of homes sold in that same time fell by 6.5%.

• Average 2024 median list price: $190,000
• Percentage down with $25,000: 13.2%

Zillow data shows that prices rose by 7.3% in this Rust Belt metro in the last year. In fact, they’ve been rising steadily since 2020 with almost no slowdown, despite rising interest rates.

• Average 2024 median list price: $200,000
• Percentage down with $25,000: 12.5%

Prices are rising fast in Flint, with Redfin quoting a 20.8% year-over-year increase in what the site calls a “somewhat competitive” market.

• Average 2024 median list price: $207,000
• Percentage down with $25,000: 12.1%

This tri-state metro saw housing prices taper off and go flat when interest rates rose. However, the needle is ticking back up, and Zillow says prices in the metropolitan area increased by more than 4% in the last year.

• Average 2024 median list price: $215,000
• Percentage down with $25,000: 11.6%

Redfin says Rockford is a “very competitive” market, where the price per square foot has risen by $98 — or 11.9% — since this time last year.

• Average 2024 median list price: $215,000
• Percentage down with $25,000: 11.6%

Zillow data shows that prices in this Midwestern metro have risen by a modest 1.6% over the last year and are beginning to taper off slightly as the market cools.

• Average 2024 median list price: $225,000
• Percentage down with $25,000: 11.1%

Redfin calls Binghamton a “somewhat competitive” market, where the year-over-year median sale price rose by a negligible 0.3% and the number of homes sold fell by 14%.

• Average 2024 median list price: $240,000
• Percentage down with $25,000: 10.4%

Redfin says prices in this “somewhat competitive” metro have increased by 7.3% over the last year, while the number of homes sold fell by 30%, and the median home languished on the market for 23 more days than before.

• Average 2024 median list price: $240,000
• Percentage down with $25,000: 10.4%

In this metro, it all depends on where you’re looking to buy. According to Rocket Homes, Bossier City is a seller’s market, while Shreveport is currently a buyer’s market.

Average median list prices and percentage down were sourced from Realtor.com. Additional information was sourced from Rocket Homes, Redfin and Zillow.

Editor’s note on election coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.