Las Vegas Is Tough On First-Time Home Owners

Las Vegas has rebounded nicely from the recession of the late 2000s, but that doesn't mean it's kind to young homeowners. A new study from LendingTree names Las Vegas as the fifth most challenging U.S, city for first-time home buyers.

The study looked at average down payment amount, average down payment percentage, the number of FHA mortgages being used, percentage of buyers who have a credit score below 680, the share of home sold that are affordable to the median income, and the average FHA down payment.

Las Vegas' rank among the ten worst cities for first-time buyers was "surprising," the report stated.

"Las Vegas and Austin both had very low shares of FHA and non-prime borrowers and didn’t rank particularly well in other metrics. These are both very popular smaller cities that may be seeing external buyers crowding out the local population," the study determined.

Out of 100 cities, Las Vegas ranked 99th for the number of FHA mortgages being used and 95th for the number of home owners with a credit score below 680. The average down payment for a home in Las Vegas is $40,785, which ranked 65th.

Industrial states like Ohio, Pennsylvania, Michigan and Indiana present good home-buying opportunities for first-time home buyers as 12 of the top 15 cities are in these states, according to LendingTree.

Check out the full report from LendingTree here

Image via Matt Rourke/Associated Press