Money

The 12 best states for first-time home buyers

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Owning a home costs more each month than renting across all 50 states. That being said, depending on your situation, buying a home can be a smart investment.

After all, self-made billionaire Warren Buffett says that real estate is a valuable asset "for a great many people." Some experts even go as far as saying that not prioritizing homeownership is "the single biggest mistake millennials are making."

If you want to get in the game, consider looking in the best states for first-time buyers, as determined by personal finance site GOBankingRates in a recent report. The site ranked all 50 U.S. states based on foreclosure rates, the share of the market represented by first-time home buyers and the median listing price for homes.

Here are the top 12 states for first-time home buyers.

12. Missouri

Share of the market represented by first-time home buyers: 57 percent
Median listing price: $158,900

Kansas City, Missouri
Andrew Rich | Getty Images
Kansas City, Missouri

11. Virginia

Share of the market represented by first-time home buyers: 57 percent
Median listing price: $288,000

Housing development in Fredericksburg, Virginia.
Micahel Melford | Getty Images
Housing development in Fredericksburg, Virginia.

10. New Mexico

Share of the market represented by first-time home buyers: 57 percent
Median listing price: $209,900

A haciend-style Southwestern house in Coralles, New Mexico
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A haciend-style Southwestern house in Coralles, New Mexico

9. Minnesota

Share of the market represented by first-time home buyers: 52 percent
Median listing price: $239,900

An early morning jog around Lake Calhoun, Minneapolis/St. Paul Minnesota.
John Elk | Getty Images
An early morning jog around Lake Calhoun, Minneapolis/St. Paul Minnesota.

8. Georgia

Share of the market represented by first-time home buyers: 56 percent
Median listing price: $212,900

Macon, Georgia
Walter Bibikow | Getty Images
Macon, Georgia

7. Alaska

Share of the market represented by first-time home buyers: 52 percent
Median listing price: $270,000

Anchorage, Alaska
David Ryder | Bloomberg | Getty Images
Anchorage, Alaska

6. Pennsylvania

Share of the market represented by first-time home buyers: 59 percent
Median listing price: $185,000

A house in Chester County, Pennsylvania.
Robert Kirk | Getty Images
A house in Chester County, Pennsylvania.

5. New York

Share of the market represented by first-time home buyers: 65 percent
Median listing price: $359,000

A home for sale is shown in White Plains, N.Y.
Craig Ruttle | Bloomberg | Getty Images
A home for sale is shown in White Plains, N.Y.

4. Michigan

Share of the market represented by first-time home buyers: 54 percent
Median listing price: $152,000

Ann Arbor, Michigan
Andy Sacks | Getty Images
Ann Arbor, Michigan

3. Mississippi

Share of the market represented by first-time home buyers: 54 percent
Median listing price: $165,000

The historic district of Hattiesburg, Mississippi
Csfotoimages | Getty Images
The historic district of Hattiesburg, Mississippi

2. West Virginia

Share of the market represented by first-time home buyers: 52 percent
Median listing price: $149,900

West Virginia
Walter Bibikow | Getty Images
West Virginia

1. Rhode Island

Share of the market represented by first-time home buyers: 67 percent
Median listing price: $279,900

Providence, Rhode Island
Jeff Greenberg | UIG | Getty Images
Providence, Rhode Island