Best & Worst Cities for First-Time Home Buyers

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 2017, 38% of all U.S. single-family home purchases were made by first-time buyers.

The search for a first home requires careful consideration of a number of factors. Buyers must balance what they want and need with to 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.

To simplify the process, WalletHub compared 300 cities of varying sizes across 27 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. Read on for our findings, insight from a panel of experts and a full description of our methodology.

Main Findings

Best Places for First-Time Home Buyers

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 (65.79)	1	Boise, ID (64.69)	1	Broken Arrow, OK (67.09)
2	Colorado Springs, CO (61.90)	2	Grand Rapids, MI (64.65)	2	Centennial, CO (64.74)
3	Raleigh, NC (61.65)	3	McKinney, TX (64.26)	3	Thornton, CO (64.49)
4	Columbus, OH (61.45)	4	Cary, NC (64.03)	4	Frisco, TX (64.26)
5	Pittsburgh, PA (61.37)	5	Gilbert, AZ (63.98)	5	Kenosha, WI (63.91)
6	Phoenix, AZ (60.41)	6	Chandler, AZ (63.92)	6	Allen, TX (63.45)
7	Denver, CO (60.08)	7	Peoria, AZ (63.80)	7	Arvada, CO (63.37)
8	Minneapolis, MN (59.96)	8	Orlando, FL (63.78)	8	Roseville, CA (63.07)
9	Las Vegas, NV (59.68)	9	Overland Park, KS (63.51)	9	Norman, OK (62.97)
10	El Paso, TX (59.59)	10	Scottsdale, AZ (62.69)	10	Greeley, CO (62.95)
11	Mesa, AZ (59.06)	11	Fort Collins, CO (62.54)	11	Wilmington, NC (62.71)
12	Aurora, CO (58.86)	12	Cape Coral, FL (61.74)	12	Longmont, CO (62.61)
13	Atlanta, GA (58.83)	13	Madison, WI (61.41)	13	Charleston, SC (62.57)
14	Sacramento, CA (58.79)	14	Henderson, NV (61.22)	14	Murfreesboro, TN (62.07)
15	Charlotte, NC (58.44)	15	Chesapeake, VA (60.96)	15	Westminster, CO (61.89)
16	Virginia Beach, VA (58.14)	16	Augusta, GA (60.83)	16	Surprise, AZ (61.69)
17	Oklahoma City, OK (57.91)	17	Des Moines, IA (60.83)	17	Hampton, VA (61.38)
18	Omaha, NE (57.54)	18	St. Petersburg, FL (60.39)	18	Livonia, MI (61.01)
19	Lexington, KY (57.29)	19	Lincoln, NE (60.23)	19	Pueblo, CO (60.90)
20	Nashville, TN (57.14)	20	Plano, TX (60.06)	20	Spokane Valley, WA (60.87)
21	Milwaukee, WI (56.57)	21	Grand Prairie, TX (60.03)	21	Joliet, IL (60.72)
22	Philadelphia, PA (56.22)	22	Akron, OH (59.88)	22	Green Bay, WI (60.47)
23	Austin, TX (56.08)	23	Winston-Salem, NC (59.82)	23	Naperville, IL (60.30)
24	Jacksonville, FL (55.86)	24	Newport News, VA (58.88)	24	Dearborn, MI (60.28)
25	Tucson, AZ (55.77)	25	Richmond, VA (58.52)	25	Roswell, GA (60.17)
26	Bakersfield, CA (54.89)	26	St. Paul, MN (58.45)	26	Boca Raton, FL (59.95)
27	San Antonio, TX (54.76)	27	Salt Lake City, UT (58.21)	27	Roanoke, VA (59.69)
28	Kansas City, MO (54.50)	28	Elk Grove, CA (58.05)	28	Yakima, WA (59.59)
29	Wichita, KS (54.47)	29	Reno, NV (57.68)	29	Richardson, TX (59.57)
30	Louisville, KY (53.96)	30	Glendale, AZ (57.59)	30	Cedar Rapids, IA (59.24)
31	Fort Worth, TX (53.84)	31	Fort Wayne, IN (57.39)	31	Denton, TX (58.87)
32	St. Louis, MO (53.34)	32	Vancouver, WA (57.37)	32	Warren, MI (58.72)
33	Tulsa, OK (52.37)	33	Spokane, WA (57.29)	33	Vacaville, CA (58.70)
34	Fresno, CA (52.11)	34	Cincinnati, OH (57.24)	34	Clearwater, FL (58.70)
35	Riverside, CA (51.72)	35	Alexandria, VA (57.23)	35	Portsmouth, VA (58.44)
36	Seattle, WA (51.56)	36	Pembroke Pines, FL (57.18)	36	Lakewood, CO (58.40)
37	San Diego, CA (50.96)	37	Garland, TX (57.11)	37	Davie, FL (58.34)
38	Albuquerque, NM (50.96)	38	Durham, NC (56.97)	38	Carrollton, TX (58.21)
39	Portland, OR (50.91)	39	Tacoma, WA (56.81)	39	Palm Bay, FL (58.12)
40	Memphis, TN (50.74)	40	Tempe, AZ (56.71)	40	Elgin, IL (57.99)
41	Baltimore, MD (50.71)	41	North Las Vegas, NV (56.71)	41	Manchester, NH (57.74)
42	Dallas, TX (50.55)	42	Toledo, OH (56.50)	42	Sandy Springs, GA (57.36)
43	Indianapolis, IN (49.93)	43	Norfolk, VA (56.22)	43	Waukegan, IL (57.28)
44	Stockton, CA (49.05)	44	Aurora, IL (55.79)	44	Allentown, PA (57.10)
45	Chicago, IL (49.01)	45	Springfield, MA (55.33)	45	Clovis, CA (56.51)
46	Arlington, TX (48.51)	46	Irving, TX (55.02)	46	Sterling Heights, MI (56.50)
47	Anaheim, CA (47.35)	47	Lancaster, CA (54.24)	47	Miramar, FL (56.47)
48	San Jose, CA (46.78)	48	Irvine, CA (54.07)	48	Bellevue, WA (56.46)
49	Honolulu, HI (46.29)	49	Greensboro, NC (53.90)	49	Temecula, CA (56.44)
50	Cleveland, OH (46.03)	50	Port St. Lucie, FL (53.60)	50	Victorville, CA (56.29)
51	Long Beach, CA (45.43)	51	Rancho Cucamonga, CA (53.41)	51	Lakeland, FL (56.16)
52	Corpus Christi, TX (45.32)	52	Columbus, GA (53.21)	52	North Charleston, SC (55.81)
53	New Orleans, LA (45.19)	53	Santa Rosa, CA (52.86)	53	High Point, NC (55.70)
54	Santa Ana, CA (45.10)	54	Palmdale, CA (52.69)	54	Plantation, FL (55.59)
55	Houston, TX (44.99)	55	Amarillo, TX (52.67)	55	Hillsboro, OR (55.46)
56	Boston, MA (43.36)	56	Moreno Valley, CA (52.62)	56	Murrieta, CA (55.44)
57	Los Angeles, CA (42.63)	57	Fontana, CA (52.58)	57	Savannah, GA (55.38)
58	Washington, DC (41.52)	58	Corona, CA (52.17)	58	Kent, WA (55.22)
59	Miami, FL (40.10)	59	Huntsville, AL (52.03)	59	Renton, WA (55.18)
60	New York, NY (39.76)	60	Ontario, CA (52.03)	60	Everett, WA (55.12)
61	Oakland, CA (38.31)	61	Knoxville, TN (51.97)	61	Coral Springs, FL (55.02)
62	San Francisco, CA (37.85)	62	Laredo, TX (50.94)	62	Davenport, IA (55.00)
63	Detroit, MI (37.21)	63	Little Rock, AR (50.82)	63	Visalia, CA (54.87)
		64	Santa Clarita, CA (50.66)	64	Boulder, CO (54.58)
		65	Springfield, MO (50.65)	65	West Palm Beach, FL (54.40)
		66	Glendale, CA (50.55)	66	Chico, CA (54.20)
		67	Worcester, MA (50.51)	67	Ann Arbor, MI (54.11)
		68	Salem, OR (50.50)	68	Erie, PA (53.90)
		69	Chula Vista, CA (50.33)	69	Athens-Clarke, GA (53.88)
		70	Fort Lauderdale, FL (49.74)	70	Santa Maria, CA (53.74)
		71	Fayetteville, NC (49.48)	71	Rialto, CA (53.69)
		72	Eugene, OR (49.03)	72	Fairfield, CA (53.66)
		73	Modesto, CA (49.00)	73	Yuma, AZ (53.42)
		74	Jersey City, NJ (48.86)	74	Beaverton, OR (53.27)
		75	Baton Rouge, LA (48.85)	75	Peoria, IL (53.16)
		76	San Bernardino, CA (48.76)	76	Pompano Beach, FL (53.13)
		77	Salinas, CA (48.64)	77	Tuscaloosa, AL (53.06)
		78	Oxnard, CA (48.01)	78	Sunrise, FL (52.95)
		79	Buffalo, NY (47.94)	79	Hollywood, FL (52.90)
		80	Hayward, CA (47.35)	80	Federal Way, WA (52.88)
		81	Fremont, CA (47.30)	81	Gainesville, FL (52.82)
		82	Pomona, CA (47.17)	82	Stamford, CT (52.03)
		83	Tallahassee, FL (47.17)	83	Mission Viejo, CA (51.94)
		84	Oceanside, CA (47.10)	84	New Bedford, MA (51.20)
		85	Garden Grove, CA (46.68)	85	Lowell, MA (51.13)
		86	Jackson, MS (46.53)	86	New Haven, CT (51.07)
		87	Shreveport, LA (46.30)	87	Quincy, MA (50.64)
		88	Mobile, AL (45.97)	88	Lynn, MA (50.60)
		89	Huntington Beach, CA (45.55)	89	Antioch, CA (50.39)
		90	Providence, RI (45.13)	90	Concord, CA (50.17)
		91	Hialeah, FL (44.81)	91	Fall River, MA (50.06)
		92	Montgomery, AL (43.49)	92	Fort Smith, AR (50.02)
		93	Rochester, NY (43.12)	93	Springfield, IL (49.95)
		94	Yonkers, NY (42.09)	94	Simi Valley, CA (49.84)
		95	Birmingham, AL (40.84)	95	Gresham, OR (49.54)
		96	Anchorage, AK (39.61)	96	Brockton, MA (49.41)
		97	Newark, NJ (39.43)	97	Norwalk, CA (49.23)
				98	Thousand Oaks, CA (49.20)
				99	Mesquite, TX (49.07)
				100	Santa Clara, CA (49.03)
				101	Carlsbad, CA (48.89)
				102	Richmond, CA (48.81)
				103	Orange, CA (48.79)
				104	Waterbury, CT (48.73)
				105	Carson, CA (48.59)
				106	Hartford, CT (47.99)
				107	West Covina, CA (47.67)
				108	Ventura, CA (47.44)
				109	Miami Gardens, FL (47.27)
				110	Vallejo, CA (47.19)
				111	Escondido, CA (47.10)
				112	Cambridge, MA (46.97)
				113	Bridgeport, CT (46.91)
				114	Dayton, OH (46.91)
				115	Downey, CA (46.55)
				116	Rockford, IL (46.50)
				117	Fullerton, CA (46.33)
				118	Santa Monica, CA (46.24)
				119	Santa Barbara, CA (46.16)
				120	Sunnyvale, CA (45.90)
				121	Compton, CA (45.87)
				122	Albany, NY (45.75)
				123	Pasadena, CA (45.65)
				124	Vista, CA (45.65)
				125	Lansing, MI (44.97)
				126	El Cajon, CA (44.59)
				127	Burbank, CA (44.32)
				128	Torrance, CA (43.91)
				129	Costa Mesa, CA (43.57)
				130	South Gate, CA (43.49)
				131	Inglewood, CA (43.16)
				132	Paterson, NJ (42.95)
				133	Westminster, CA (41.12)
				134	Daly City, CA (41.08)
				135	El Monte, CA (39.98)
				136	Elizabeth, NJ (39.38)
				137	Miami Beach, FL (38.55)
				138	San Mateo, CA (38.27)
				139	Flint, MI (37.36)
				140	Berkeley, CA (35.96)

 

Ask the Experts

Purchasing real estate for the first time can be a scary experience for many consumers. But it doesn’t have to be. For advice and insight, we asked a panel of experts to share their thoughts on the following key questions:

1. What should first-time home buyers consider when choosing a neighborhood
2. How do you know that you are financially ready to buy your first home?
3. What do you recommend as the minimum down payment for a first-time home buyer?
4. What effect did Trump’s Executive Order increasing the cost of FHA-backed loans have on first-time home buyers?
5. How can federal, state and local policymakers responsibly and effectively increase home affordability, particularly for first-time home buyers?

Methodology

To determine the most favorable housing markets for first-time home buyers, WalletHub compared a sample of 300 U.S. cities (varying in size) across three key dimensions: 1) Affordability, 2) Real-Estate Market and 3) Quality of Life.

We evaluated those dimensions using 27 relevant metrics, which are listed below with their corresponding weights. Each metric was graded on a 100-point scale, with a score of 100 representing the most favorable conditions for first-time home buyers. Data for metrics marked with an asterisk (*) were available at the state level only.

Finally, we determined each city’s weighted average across all metrics to calculate its overall score and used the resulting scores to rank-order our sample. Our sample considers only the city proper in each case and excludes cities in the surrounding metro area. Each city was categorized according to the following population-size guidelines:

• Large cities: More than 300,000 people
• Midsize cities: 150,000 to 300,000 people
• Small cities: Fewer than 150,000 people

Affordability – Total Points: 33.33

• Housing Affordability: Triple Weight (~14.29 Points)
  Note: This metric was calculated as follows: Median House Price / Median Annual Household Income.
• Average Cost of Homeowner’s Insurance*: Full Weight (~4.76 Points)
• Cost of Living: Full Weight (~4.76 Points)
• Cost per Square Foot: Full Weight (~4.76 Points)
  Note: This metric measures specifically the median list price per average home square footage.
• Real-Estate Tax Rate: Full Weight (~4.76 Points)

Real-Estate Market – Total Points: 33.33

• Rent-to-Price-Ratio: Double Weight (~4.44 Points)
• Housing-Market Health Index: Full Weight (~2.22 Points)
• Share of Homes Sold in One Year: Full Weight (~2.22 Points)
• Median Home-Price Appreciation: Double Weight (~4.44 Points)
• Foreclosure Rate: Full Weight (~2.22 Points)
• Share of Mortgage Holders with Negative Equity: Full Weight (~2.22 Points)
  Note: This metric measures the proportion of mortgage holders whose balance on mortgage is higher than the value of homes.
• Buy vs. Rent Breakeven Horizon: Full Weight (~2.22 Points)
  Note: The “breakeven horizon” is defined by Zillow as the point, in years, at which buying a home becomes less expensive than renting the same home.
• Share of Listings with Price Cuts: Full Weight (~2.22 Points)
• Share of Housing Units Built between 2010 and 2016: Full Weight (~2.22 Points)
• Building-Permit Activity: Full Weight (~2.22 Points)
  Note: This metric measures the number of unit permits pulled per 1,000 residents.
• Mortgage Lenders per Capita: Full Weight (~2.22 Points)
• Real Estate Agents per Capita: Full Weight (~2.22 Points)
• Homeownership Rate for Millennials: Full Weight (~2.22 Points)

Quality of Life – Total Points: 33.33

• Recreation-Friendliness: Full Weight (~3.33 Points)
  Note: This metric is based on WalletHub’s “Best & Worst Cities for Recreation” ranking.
• Recession Recovery: Full Weight (~3.33 Points)
  Note: This metric is based on WalletHub’s “Most & Least Recession-Recovered Cities” ranking.
• Weather: Full Weight (~3.33 Points)
  Note: This metric is based on WalletHub’s “Cities with the Best & Worst Weather” ranking.
• Quality of School System*: Double Weight (~6.67 Points)
  Note: This metric is based on WalletHub’s “States with the Best & Worst School Systems” ranking.
• Driver-Friendliness: Full Weight (~3.33 Points)
  Note: This metric is based on WalletHub’s “Best & Worst Cities to Drive in” ranking.
• Job Market: Full Weight (~3.33 Points)
  Note: This metric is based on WalletHub’s “Best & Worst Cities for Jobs” ranking.
• Total Home-Energy Cost: Full Weight (~3.33 Points)
• Violent-Crime Rate: Full Weight (~3.33 Points)
• Property-Crime Rate: Full Weight (~3.33 Points)

Sources: Data used to create this ranking were collected from the U.S. Census Bureau, Bureau of Labor Statistics, Council for Community and Economic Research, U.S. Department of Housing and Urban Development, Zillow, Federal Bureau of Investigation, Insurance Information Institute, AreaVibes, Renwood RealtyTrac and WalletHub research.