2019’s 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 2018, 39% 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 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 (67.14) |
1 | Overland Park, KS (67.04) |
1 | Thornton, CO (66.30) |
| 2 | Colorado Springs, CO (62.57) |
2 | Grand Rapids, MI (65.21) |
2 | Greeley, CO (64.79) |
| 3 | Atlanta, GA (62.53) |
3 | Boise, ID (65.00) |
3 | Arvada, CO (64.53) |
| 4 | Lexington, KY (61.55) |
4 | Peoria, AZ (64.57) |
4 | Centennial, CO (64.21) |
| 5 | Oklahoma City, OK (61.37) |
5 | McKinney, TX (64.27) |
5 | Murfreesboro, TN (63.79) |
| 6 | Columbus, OH (61.24) |
6 | Lincoln, NE (63.96) |
6 | Roanoke, VA (63.74) |
| 7 | Las Vegas, NV (61.08) |
7 | Chandler, AZ (63.91) |
7 | Charleston, SC (63.50) |
| 8 | Denver, CO (60.69) |
8 | Frisco, TX (63.82) |
8 | Kenosha, WI (63.02) |
| 9 | Phoenix, AZ (60.50) |
9 | Gilbert, AZ (63.64) |
9 | Broken Arrow, OK (62.69) |
| 10 | Fort Worth, TX (60.29) |
10 | Orlando, FL (63.18) |
10 | Westminster, CO (62.64) |
| 11 | Minneapolis, MN (59.94) |
11 | Cary, NC (63.00) |
11 | Longmont, CO (62.51) |
| 12 | Aurora, CO (59.59) |
12 | Chesapeake, VA (62.68) |
12 | Surprise, AZ (62.47) |
| 13 | Louisville, KY (59.46) |
13 | Scottsdale, AZ (62.43) |
13 | Roseville, CA (62.47) |
| 14 | Pittsburgh, PA (59.37) |
14 | Henderson, NV (62.33) |
14 | Roswell, GA (62.28) |
| 15 | Omaha, NE (59.33) |
15 | Fort Wayne, IN (62.02) |
15 | Spokane Valley, WA (62.05) |
| 16 | Virginia Beach, VA (59.22) |
16 | Fort Collins, CO (61.80) |
16 | Pueblo, CO (61.81) |
| 17 | El Paso, TX (58.97) |
17 | Cape Coral, FL (61.71) |
17 | Livonia, MI (61.73) |
| 18 | Mesa, AZ (58.96) |
18 | Vancouver, WA (61.33) |
18 | Norman, OK (61.71) |
| 19 | Raleigh, NC (58.91) |
19 | Plano, TX (60.55) |
19 | Dearborn, MI (61.62) |
| 20 | Nashville, TN (58.80) |
20 | St. Petersburg, FL (60.15) |
20 | Green Bay, WI (61.42) |
| 21 | Charlotte, NC (58.75) |
21 | Madison, WI (60.13) |
21 | Hampton, VA (61.23) |
| 22 | St. Paul, MN (58.62) |
22 | Cincinnati, OH (60.04) |
22 | Sunrise, FL (60.83) |
| 23 | Jacksonville, FL (58.02) |
23 | Tacoma, WA (59.78) |
23 | Boca Raton, FL (60.68) |
| 24 | Sacramento, CA (57.95) |
24 | Newport News, VA (59.77) |
24 | Warren, MI (60.07) |
| 25 | Austin, TX (55.77) |
25 | Richmond, VA (59.73) |
25 | Clearwater, FL (60.03) |
| 26 | Tucson, AZ (55.32) |
26 | Grand Prairie, TX (59.68) |
26 | Carrollton, TX (59.93) |
| 27 | Arlington, TX (54.93) |
27 | Columbus, GA (59.57) |
27 | Naperville, IL (59.86) |
| 28 | Milwaukee, WI (54.85) |
28 | Huntsville, AL (59.33) |
28 | Erie, PA (59.71) |
| 29 | Tulsa, OK (54.82) |
29 | Port St. Lucie, FL (59.12) |
29 | Tuscaloosa, AL (59.53) |
| 30 | Kansas City, MO (54.67) |
30 | Des Moines, IA (59.11) |
30 | Denton, TX (59.26) |
| 31 | San Antonio, TX (54.52) |
31 | Lakewood, CO (58.91) |
31 | Portsmouth, VA (59.13) |
| 32 | Bakersfield, CA (54.26) |
32 | Reno, NV (58.31) |
32 | Cedar Rapids, IA (59.11) |
| 33 | Cleveland, OH (54.15) |
33 | Akron, OH (58.28) |
33 | Palm Bay, FL (59.04) |
| 34 | Philadelphia, PA (54.12) |
34 | Pembroke Pines, FL (58.17) |
34 | North Charleston, SC (58.99) |
| 35 | St. Louis, MO (53.86) |
35 | Spokane, WA (58.16) |
35 | Yakima, WA (58.92) |
| 36 | Wichita, KS (53.66) |
36 | Glendale, AZ (58.01) |
36 | Elgin, IL (58.67) |
| 37 | Baltimore, MD (53.63) |
37 | Elk Grove, CA (57.83) |
37 | Visalia, CA (58.65) |
| 38 | Seattle, WA (52.37) |
38 | Durham, NC (57.76) |
38 | Savannah, GA (58.50) |
| 39 | Portland, OR (52.17) |
39 | Norfolk, VA (57.40) |
39 | Wilmington, NC (58.47) |
| 40 | Fresno, CA (51.45) |
40 | Tempe, AZ (57.35) |
40 | Lakeland, FL (58.30) |
| 41 | Indianapolis, IN (51.28) |
41 | North Las Vegas, NV (56.98) |
41 | Richardson, TX (58.18) |
| 42 | Memphis, TN (51.26) |
42 | Knoxville, TN (56.87) |
42 | Joliet, IL (58.15) |
| 43 | Riverside, CA (51.01) |
43 | Alexandria, VA (56.62) |
43 | Davie, FL (58.02) |
| 44 | Dallas, TX (50.60) |
44 | Salt Lake City, UT (56.30) |
44 | Allen, TX (57.93) |
| 45 | Albuquerque, NM (50.59) |
45 | Winston-Salem, NC (56.17) |
45 | Vacaville, CA (57.83) |
| 46 | Stockton, CA (49.08) |
46 | Aurora, IL (56.10) |
46 | Sterling Heights, MI (57.62) |
| 47 | San Diego, CA (49.05) |
47 | Toledo, OH (55.85) |
47 | Sandy Springs, GA (57.45) |
| 48 | Chicago, IL (48.39) |
48 | Irving, TX (55.29) |
48 | Manchester, NH (57.32) |
| 49 | Corpus Christi, TX (47.34) |
49 | Rochester, NY (54.48) |
49 | Miramar, FL (57.15) |
| 50 | Houston, TX (46.72) |
50 | Amarillo, TX (54.37) |
50 | Renton, WA (57.00) |
| 51 | New Orleans, LA (45.50) |
51 | Salem, OR (54.21) |
51 | Hillsboro, OR (56.95) |
| 52 | Anaheim, CA (45.04) |
52 | Greensboro, NC (54.20) |
52 | Bellevue, WA (56.87) |
| 53 | San Jose, CA (44.91) |
53 | Springfield, MA (53.87) |
53 | Everett, WA (56.82) |
| 54 | Santa Ana, CA (44.31) |
54 | Garland, TX (53.67) |
54 | Peoria, IL (56.77) |
| 55 | Miami, FL (43.95) |
55 | Montgomery, AL (53.38) |
55 | High Point, NC (56.32) |
| 56 | Honolulu, HI (43.65) |
56 | Worcester, MA (53.19) |
56 | Allentown, PA (56.28) |
| 57 | Washington, DC (43.51) |
57 | Laredo, TX (52.95) |
57 | Temecula, CA (56.20) |
| 58 | New York, NY (43.00) |
58 | Palmdale, CA (52.56) |
58 | Yuma, AZ (56.19) |
| 59 | Boston, MA (42.99) |
59 | Moreno Valley, CA (52.31) |
59 | Clovis, CA (56.01) |
| 60 | Long Beach, CA (42.91) |
60 | Irvine, CA (52.30) |
60 | Springfield, IL (55.80) |
| 61 | San Francisco, CA (42.06) |
61 | Corona, CA (52.22) |
61 | Federal Way, WA (55.73) |
| 62 | Los Angeles, CA (40.17) |
62 | Augusta, GA (52.20) |
62 | Fort Smith, AR (55.57) |
| 63 | Oakland, CA (37.45) |
63 | Rancho Cucamonga, CA (52.14) |
63 | Victorville, CA (55.49) |
| 64 | Detroit, MI (33.37) |
64 | Lancaster, CA (52.09) |
64 | Plantation, FL (55.37) |
| 65 | Fontana, CA (51.84) |
65 | Waukegan, IL (55.32) |
||
| 66 | Modesto, CA (51.57) |
66 | Kent, WA (55.31) |
||
| 67 | Buffalo, NY (51.46) |
67 | Murrieta, CA (55.27) |
||
| 68 | Little Rock, AR (51.19) |
68 | Ann Arbor, MI (55.25) |
||
| 69 | Springfield, MO (51.06) |
69 | Coral Springs, FL (55.25) |
||
| 70 | Tallahassee, FL (51.02) |
70 | Rockford, IL (54.90) |
||
| 71 | Fayetteville, NC (50.46) |
71 | Chico, CA (54.66) |
||
| 72 | Ontario, CA (50.02) |
72 | Beaverton, OR (54.46) |
||
| 73 | Chula Vista, CA (49.22) |
73 | Lowell, MA (54.30) |
||
| 74 | Fort Lauderdale, FL (49.20) |
74 | Athens-Clarke, GA (54.27) |
||
| 75 | Santa Rosa, CA (49.12) |
75 | West Palm Beach, FL (54.10) |
||
| 76 | Eugene, OR (49.07) |
76 | Gainesville, FL (53.84) |
||
| 77 | Baton Rouge, LA (48.75) |
77 | Fairfield, CA (53.49) |
||
| 78 | Santa Clarita, CA (48.19) |
78 | Davenport, IA (53.43) |
||
| 79 | Jersey City, NJ (48.12) |
79 | Rialto, CA (53.08) |
||
| 80 | Oxnard, CA (47.98) |
80 | Miami Gardens, FL (53.07) |
||
| 81 | San Bernardino, CA (47.57) |
81 | Lansing, MI (52.95) |
||
| 82 | Mobile, AL (47.23) |
82 | Santa Maria, CA (52.47) |
||
| 83 | Providence, RI (47.18) |
83 | Hollywood, FL (52.45) |
||
| 84 | Hayward, CA (47.00) |
84 | Pompano Beach, FL (52.12) |
||
| 85 | Shreveport, LA (46.55) |
85 | Stamford, CT (51.91) |
||
| 86 | Jackson, MS (46.45) |
86 | New Bedford, MA (51.90) |
||
| 87 | Fremont, CA (46.20) |
87 | Fall River, MA (51.73) |
||
| 88 | Hialeah, FL (45.57) |
88 | Quincy, MA (51.48) |
||
| 89 | Pomona, CA (45.47) |
89 | Lynn, MA (51.27) |
||
| 90 | Escondido, CA (45.35) |
90 | Mission Viejo, CA (50.94) |
||
| 91 | Oceanside, CA (44.94) |
91 | Gresham, OR (50.32) |
||
| 92 | Salinas, CA (44.65) |
92 | Brockton, MA (50.22) |
||
| 93 | Anchorage, AK (44.21) |
93 | New Haven, CT (49.89) |
||
| 94 | Huntington Beach, CA (43.86) |
94 | Albany, NY (49.58) |
||
| 95 | Garden Grove, CA (43.29) |
95 | Simi Valley, CA (49.52) |
||
| 96 | Sunnyvale, CA (42.97) |
96 | Concord, CA (49.52) |
||
| 97 | Birmingham, AL (42.86) |
97 | Mesquite, TX (49.42) |
||
| 98 | Yonkers, NY (41.33) |
98 | Waterbury, CT (49.28) |
||
| 99 | Glendale, CA (39.72) |
99 | Antioch, CA (48.94) |
||
| 100 | Newark, NJ (38.97) |
100 | Dayton, OH (48.89) |
||
| 101 | Bridgeport, CT (48.84) |
||||
| 102 | Vallejo, CA (48.21) |
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| 103 | Hartford, CT (48.02) |
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| 104 | Thousand Oaks, CA (47.96) |
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| 105 | Orange, CA (47.40) |
||||
| 106 | Norwalk, CA (47.30) |
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| 107 | Ventura, CA (46.90) |
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| 108 | Carlsbad, CA (46.81) |
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| 109 | Carson, CA (46.71) |
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| 110 | Flint, MI (46.55) |
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| 111 | West Covina, CA (46.40) |
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| 112 | Boulder, CO (45.87) |
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| 113 | Paterson, NJ (45.06) |
||||
| 114 | Vista, CA (44.96) |
||||
| 115 | Richmond, CA (44.76) |
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| 116 | Santa Monica, CA (44.70) |
||||
| 117 | Fullerton, CA (44.57) |
||||
| 118 | Downey, CA (44.43) |
||||
| 119 | Compton, CA (44.22) |
||||
| 120 | Santa Clara, CA (44.02) |
||||
| 121 | Cambridge, MA (43.49) |
||||
| 122 | Costa Mesa, CA (42.86) |
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| 123 | El Cajon, CA (42.81) |
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| 124 | Pasadena, CA (42.70) |
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| 125 | Torrance, CA (42.35) |
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| 126 | South Gate, CA (42.17) |
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| 127 | Burbank, CA (41.92) |
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| 128 | Inglewood, CA (40.54) |
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| 129 | Miami Beach, FL (39.87) |
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| 130 | Elizabeth, NJ (39.48) |
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| 131 | Daly City, CA (39.44) |
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| 132 | El Monte, CA (39.01) |
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| 133 | Westminster, CA (38.95) |
||||
| 134 | San Mateo, CA (38.94) |
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| 135 | Santa Barbara, CA (36.40) |
||||
| 136 | Berkeley, CA (32.95) |
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:
- What should first-time home buyers consider when choosing a neighborhood?
- How do you know that you are financially ready to buy your first home?
- What do you recommend as the minimum down payment for a first-time home buyer?
- How can federal, state and local policymakers responsibly and effectively increase home affordability, particularly for first-time home buyers?
-
Craig Luna
Adjunct Instructor, Glendale Community College
-
Jia Xie
Assistant Professor, California State University, Fullerton
-
John Yeressian
MBA – Professor of Real Estate, Department Chair, El Camino College
-
David Echeverry
Ph.D. – Sabey Family Visiting Assistant Professor of Real Estate Innovation, Mendoza College of Business at University of Notre Dame
-
Marc Moffitt
MPA – Adjunct Professor of Real Estate, G. Brint Ryan College of Business, University of North Texas
-
Laurence J. Kotlikoff
Ph.D. – William Fairfield Warren Distinguished Professor and Professor of Economics at Boston University
Craig Luna
Jia Xie
John Yeressian
David Echeverry
Marc Moffitt
Laurence J. Kotlikoff
More Experts
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 (~14.28 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 2017: 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.
Image: Dean Drobot / Shutterstock.com
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