Buying a home for the first time is an exciting and important milestone for many Americans. Their purchases make up a sizable chunk of the market, too. In 2024, a historic low of 24% of home purchases were made by first-time buyers, down from 32% the previous year.
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For people willing and able to invest in a house this year, the search for a first home requires careful consideration of a number of factors. Buyers must balance what they want and need with what they can afford. Often, people begin searching for their dream homes without a realistic idea of market prices, interest rates or even their eligibility to get a mortgage.
Where a home is located is just as important as what features it has. If the neighborhood is unpleasant, it can sour the experience of a great home. Potential buyers may want to narrow their search down to an area with a good reputation before getting into housing details.
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To simplify the process, WalletHub compared 300 cities of varying sizes across 22 key indicators of market attractiveness, affordability and quality of life. Our data set ranges from cost of living to real-estate taxes to property-crime rate.
“Buying a home for the first time is a very stressful and difficult process, especially when housing prices are through the roof and interest rates have risen sharply in the past few years. The best cities for first-time home buyers not only are affordable both in terms of buying a house and living there afterward, but they also have a lot of housing choices as well as low crime rates and good schools.”
Note: With the exception of “Total Score,” all of the columns in the table above depict the relative rank of each city, where a rank of 1 represents the best conditions for each category.
Affordable Housing
Most
1. Flint, MI
2. Detroit, MI
3. Peoria, IL
4. Springfield, IL
5. Toledo, OH
Least
259. Glendale, CA
260. Costa Mesa, CA
261. Irvine, CA
T-262. Santa Monica, CA
T-262. Santa Barbara, CA
Best City vs. Worst City: 10x Difference
Flint, MI vs. Santa Barbara, CA
Cost of Living
Lowest
1. Flint, MI
2. Oklahoma City, OK
3. Amarillo, TX
T-4. Akron, OH
T-4. Augusta, GA
Highest
T-251. Honolulu, HI
T-251. Thousand Oaks, CA
T-251. Santa Barbara, CA
T-251. Santa Clara, CA
T-251. Sunnyvale, CA
Best City vs. Worst City: 3x Difference
Flint, MI vs. Sunnyvale, CA
Ranking by City Size
Rank (1=Best)
Large Cities (Score)
Rank (1=Best)
Midsize Cities (Score)
Rank (1=Best)
Small Cities (Score)
1
Tampa, FL (64.41)
1
Boise, ID (64.73)
1
Palm Bay, FL (67.24)
2
Orlando, FL (63.01)
2
Huntsville, AL (63.79)
2
Surprise, AZ (64.32)
3
Henderson, NV (60.22)
3
Gilbert, AZ (63.50)
3
Lakeland, FL (62.85)
4
Raleigh, NC (59.82)
4
Cape Coral, FL (63.43)
4
Sunrise, FL (61.82)
5
Pittsburgh, PA (59.52)
5
Chandler, AZ (61.57)
5
Green Bay, WI (61.23)
6
Atlanta, GA (59.37)
6
Peoria, AZ (61.14)
6
Boca Raton, FL (60.60)
7
Jacksonville, FL (58.77)
7
Lincoln, NE (60.97)
7
Thornton, CO (60.55)
8
Mesa, AZ (58.75)
8
Madison, WI (60.10)
8
Clearwater, FL (60.48)
9
Las Vegas, NV (58.45)
9
Scottsdale, AZ (59.88)
9
Kenosha, WI (60.21)
10
Colorado Springs, CO (58.38)
10
Fort Wayne, IN (59.61)
10
Arvada, CO (59.62)
11
Virginia Beach, VA (58.06)
11
Pembroke Pines, FL (59.22)
11
Yuma, AZ (59.22)
12
Phoenix, AZ (56.82)
12
Chesapeake, VA (59.21)
12
Spokane Valley, WA (58.75)
13
Lexington, KY (56.38)
13
Murfreesboro, TN (58.90)
13
Springfield, IL (58.07)
14
Omaha, NE (56.31)
14
Port St. Lucie, FL (58.85)
14
Joliet, IL (57.94)
15
Charlotte, NC (56.29)
15
Cary, NC (58.66)
15
Longmont, CO (57.78)
16
Tucson, AZ (54.79)
16
Salt Lake City, UT (58.20)
16
Davie, FL (57.75)
17
Columbus, OH (54.41)
17
North Las Vegas, NV (58.08)
17
Yakima, WA (57.66)
18
Nashville, TN (54.09)
18
Spokane, WA (57.37)
18
Naperville, IL (57.30)
19
Austin, TX (53.72)
19
Charleston, SC (57.12)
19
Centennial, CO (57.29)
20
Indianapolis, IN (53.55)
20
Reno, NV (56.84)
20
Broken Arrow, OK (57.28)
21
Cincinnati, OH (53.51)
21
St. Petersburg, FL (56.55)
21
Roanoke, VA (57.06)
22
Aurora, CO (53.13)
22
Durham, NC (56.26)
22
Elgin, IL (56.65)
23
Tulsa, OK (52.99)
23
Glendale, AZ (56.25)
23
West Palm Beach, FL (56.61)
24
Miami, FL (52.71)
24
Lancaster, CA (56.25)
24
Westminster, CO (56.49)
25
Oklahoma City, OK (52.63)
25
Richmond, VA (56.14)
25
Davenport, IA (56.38)
26
Baltimore, MD (52.39)
26
Fort Collins, CO (55.52)
26
Manchester, NH (55.89)
27
Fort Worth, TX (51.87)
27
McKinney, TX (55.29)
27
Sterling Heights, MI (55.83)
28
Milwaukee, WI (51.81)
28
Aurora, IL (55.24)
28
Miramar, FL (55.81)
29
Louisville, KY (51.72)
29
Tempe, AZ (55.17)
29
Pueblo, CO (55.67)
30
Denver, CO (51.64)
30
Roseville, CA (55.05)
30
Waukegan, IL (55.41)
31
El Paso, TX (50.07)
31
Norfolk, VA (54.83)
31
Hampton, VA (55.40)
32
Memphis, TN (50.00)
32
Newport News, VA (54.78)
32
High Point, NC (55.27)
33
Philadelphia, PA (49.64)
33
Des Moines, IA (54.76)
33
Greeley, CO (55.08)
34
Fresno, CA (49.37)
34
Palmdale, CA (54.68)
34
Clovis, CA (55.06)
35
Detroit, MI (48.93)
35
Augusta, GA (54.45)
35
Wilmington, NC (55.02)
36
Minneapolis, MN (48.78)
36
Grand Rapids, MI (54.40)
36
Warren, MI (54.90)
37
Corpus Christi, TX (48.16)
37
Frisco, TX (54.07)
37
Cedar Rapids, IA (54.89)
38
Arlington, TX (48.11)
38
Winston-Salem, NC (54.07)
38
Roswell, GA (54.85)
39
San Antonio, TX (48.00)
39
Knoxville, TN (53.75)
39
Flint, MI (54.82)
40
Bakersfield, CA (47.97)
40
Buffalo, NY (53.31)
40
Victorville, CA (54.56)
41
Sacramento, CA (47.68)
T-41
Elk Grove, CA (53.30)
41
Savannah, GA (54.46)
42
Seattle, WA (47.65)
T-41
Overland Park, KS (53.27)
42
Visalia, CA (54.40)
43
Cleveland, OH (47.56)
43
Grand Prairie, TX (53.19)
43
Portsmouth, VA (54.37)
44
Riverside, CA (47.36)
44
Vancouver, WA (53.12)
44
Hillsboro, OR (54.03)
45
Kansas City, MO (47.26)
45
Tallahassee, FL (53.05)
45
Allentown, PA (54.00)
46
St. Paul, MN (46.65)
46
Little Rock, AR (52.54)
46
Murrieta, CA (53.86)
47
Chicago, IL (45.95)
47
Plano, TX (52.32)
47
Fort Smith, AR (53.78)
48
Portland, OR (45.85)
48
Hialeah, FL (52.31)
48
Plantation, FL (53.64)
49
Wichita, KS (45.49)
49
Toledo, OH (52.27)
49
Temecula, CA (53.44)
50
Stockton, CA (44.86)
50
Hollywood, FL (52.14)
50
Dearborn, MI (53.35)
51
Dallas, TX (44.22)
51
Birmingham, AL (52.12)
51
Coral Springs, FL (53.34)
52
Irvine, CA (44.03)
52
Columbus, GA (52.10)
52
Peoria, IL (53.31)
53
Honolulu, HI (43.92)
53
Lakewood, CO (51.95)
53
Rockford, IL (53.29)
54
Washington, DC (43.59)
54
Akron, OH (51.92)
54
Livonia, MI (53.26)
55
Santa Ana, CA (42.37)
55
Mobile, AL (51.90)
55
Miami Gardens, FL (53.08)
56
Houston, TX (42.36)
56
Salem, OR (51.81)
56
Pompano Beach, FL (53.04)
57
Albuquerque, NM (41.85)
57
Alexandria, VA (51.66)
57
Denton, TX (52.90)
58
Boston, MA (41.55)
58
Greensboro, NC (51.43)
58
North Charleston, SC (52.87)
59
Anaheim, CA (41.40)
59
Fort Lauderdale, FL (51.22)
59
Allen, TX (52.47)
60
San Diego, CA (41.21)
60
Fayetteville, NC (51.17)
60
Athens-Clarke, GA (52.28)
61
Newark, NJ (39.25)
61
Amarillo, TX (50.96)
61
Gainesville, FL (52.23)
62
New York, NY (38.97)
62
Montgomery, AL (50.12)
62
Vacaville, CA (51.58)
63
Long Beach, CA (38.82)
63
Rochester, NY (50.07)
63
Tuscaloosa, AL (51.52)
64
San Jose, CA (38.34)
64
Fontana, CA (49.99)
64
Erie, PA (51.48)
65
New Orleans, LA (35.24)
65
Moreno Valley, CA (49.96)
65
Beaverton, OR (51.26)
66
Los Angeles, CA (34.12)
66
Corona, CA (49.45)
66
Everett, WA (50.79)
67
San Francisco, CA (33.36)
67
Ontario, CA (49.38)
67
Norman, OK (50.57)
68
Oakland, CA (31.77)
68
Garland, TX (49.35)
68
Carrollton, TX (50.47)
69
Jersey City, NJ (48.71)
69
Sandy Springs, GA (50.44)
70
Tacoma, WA (48.69)
70
Gresham, OR (50.04)
71
Bellevue, WA (48.45)
71
Renton, WA (49.95)
72
Modesto, CA (48.09)
72
Chico, CA (49.94)
73
Laredo, TX (47.92)
73
Dayton, OH (49.78)
74
Worcester, MA (47.83)
74
Richardson, TX (49.61)
T-75
Santa Clarita, CA (47.71)
75
Federal Way, WA (48.70)
T-75
Yonkers, NY (47.32)
76
Kent, WA (48.67)
77
Irving, TX (47.27)
77
Albany, NY (48.64)
78
Rancho Cucamonga, CA (47.22)
78
Waterbury, CT (47.65)
79
Springfield, MA (46.94)
79
Stamford, CT (47.51)
80
San Bernardino, CA (46.77)
80
Rialto, CA (47.45)
81
Eugene, OR (46.62)
81
Ann Arbor, MI (47.10)
82
Springfield, MO (46.53)
82
Simi Valley, CA (46.97)
83
Santa Rosa, CA (46.14)
83
Fairfield, CA (46.92)
84
Providence, RI (45.60)
84
Mission Viejo, CA (46.72)
85
Chula Vista, CA (44.91)
85
Santa Maria, CA (46.60)
86
Garden Grove, CA (43.35)
86
Mesquite, TX (46.47)
87
Salinas, CA (43.02)
87
Quincy, MA (46.45)
88
St. Louis, MO (42.95)
88
Lowell, MA (46.41)
89
Baton Rouge, LA (42.52)
89
Lansing, MI (46.12)
90
Sunnyvale, CA (42.48)
90
Norwalk, CA (46.11)
91
Paterson, NJ (41.87)
91
Brockton, MA (46.05)
92
Shreveport, LA (41.86)
92
Carson, CA (46.01)
93
Fremont, CA (41.67)
93
Antioch, CA (45.75)
94
Oxnard, CA (41.38)
94
New Bedford, MA (45.67)
95
Hayward, CA (40.84)
95
Hartford, CT (45.44)
96
Oceanside, CA (40.56)
96
Lynn, MA (45.41)
97
Huntington Beach, CA (40.53)
97
Fall River, MA (45.34)
98
Glendale, CA (37.27)
98
New Haven, CT (44.90)
99
Anchorage, AK (34.66)
99
West Covina, CA (44.87)
100
Boulder, CO (44.78)
101
Pomona, CA (44.45)
102
Jackson, MS (44.00)
103
Vallejo, CA (43.69)
104
Concord, CA (43.67)
105
Ventura, CA (43.57)
106
Bridgeport, CT (43.55)
107
Orange, CA (43.51)
108
Thousand Oaks, CA (43.30)
109
Compton, CA (42.85)
110
Escondido, CA (42.56)
111
Vista, CA (41.69)
112
Elizabeth, NJ (41.67)
113
Carlsbad, CA (41.53)
114
Santa Clara, CA (41.44)
115
Downey, CA (40.28)
116
Torrance, CA (40.22)
117
South Gate, CA (40.05)
118
El Cajon, CA (39.83)
119
Inglewood, CA (39.66)
120
Fullerton, CA (39.59)
121
El Monte, CA (39.55)
122
Miami Beach, FL (39.37)
123
Cambridge, MA (39.12)
124
Westminster, CA (38.22)
125
Richmond, CA (38.15)
126
Pasadena, CA (37.56)
127
Burbank, CA (36.66)
128
Daly City, CA (36.50)
129
San Mateo, CA (35.53)
130
Costa Mesa, CA (34.28)
131
Santa Barbara, CA (33.41)
132
Santa Monica, CA (30.90)
133
Berkeley, CA (26.06)
In-Depth Look at the Best Cities for First-Time Home Buyers
Palm Bay, FL
Palm Bay, FL, is the best city for first-time home buyers. It’s among the leading cities in the country when it comes to active home listings per capita and new building permits per capita, so there are plenty of older and brand-new homes to choose from. In addition, while it’s a stereotype that millennials struggle to buy homes, Palm Bay has the fifth-highest millennial home-ownership rate.
Palm Bay residents can also look forward to their homes growing in value, as the city has the third-highest home appreciation rate in the country. Homes in the city were worth 108% more in 2023 than they were in 2017.
It’s also worth noting that Palm Bay has a pretty decent school system, too, for those who have or want children.
Palm Bay also isn’t the only Florida city that’s great for first-time home buyers – six of the top 10 cities are in Florida, including two of the top three.
Boise, ID
Boise, ID, is the second-best city for first-time home buyers, boasting high number of new building permits per capita and the seventh-lowest foreclosure rate in our study. It also has a high number of real estate agents per capita, which helps ensure that people are able to find good houses for their needs and makes the process go more smoothly.
In addition, Boise is a good place to live because it has a relatively low crime rate. It has the 64th-lowest violent crime rate and 27th-lowest property crime rate in the country out of the 300 cities in this study.
To top things off, Boise has the highest home price appreciation rate in the country, with values growing by roughly 121% between 2017 and 2023.
Tampa, FL
Tampa, FL, is the third-best city for first-time home buyers, and like the other top cities, it stands out for having a large number of new building permits and active home listings per capita. Tampa also has the 13th-most real estate agents per capita, highlighting the city’s highly competitive and active housing market.
In addition, Tampa has a pretty strong job market, making it an attractive place for career growth, and when it comes to education, the city has the 10th-best school system, offering families strong academic opportunities.
Finally, Tampa has the 12th-highest home price appreciation in the country, with homes worth 97% more in 2023 than they were in 2017.
