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Whether it’s older generations holding onto large homes or the overall slowing of the housing market amid economic uncertainty, first-time homebuyers are facing an uphill battle when they enter the housing market.
Data from the National Association of Realtors (NAR) shows there are fewer first-time homebuyers than ever in the market. The market share of first-time homebuyers decreased from 32% in 2023 to 24% in 2024 — the lowest share since NAR began tracking in 1981.
It’s also taking longer for Americans to secure their first home. The median age of a first-time homebuyer increased from 35 in 2023 to 38 in 2024.
Still, it’s not impossible to buy for the first time, and some cities have better conditions than others.
The personal-finance website WalletHub analyzed 300 US cities of all sizes across 22 metrics, grouped into three key categories: affordability, the local real estate market, and quality of life. Factoring in elements like housing costs, weather, crime rates, and school quality, the cities were ranked based on how well they support first-time homebuyers.
“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,” WalletHub Analyst Chip Lupo said. “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.”
According to WalletHub, six of the best 10 cities for first-time homebuyers are in Florida, while all but one are in the South. California garnered the most cities at the bottom of the list.
Here are the 10 best cities for first-time homebuyers and the 10 worst, according to WalletHub.
The best cities for first-time homebuyers
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10. Sunrise, Florida
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- Population: 100,128
- Median household income: $72,107
- Median home-sale price: $422,500
- Real estate market rank: 22
- Affordability rank: 153
- Quality of life rank: 13
9. Lakeland, Florida
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- Population: 124,990
- Median household income: $60,947
- Median home-sale price: $315,000
- Real estate market rank: 9
- Affordability rank: 139
- Quality of life rank: 15
8. Orlando
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- Population: 334,854
- Median household income: $69,268
- Median home-sale price: $403,500
- Real estate market rank: 7
- Affordability rank: 159
- Quality of life rank: 17
7. Cape Coral, Florida
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- Population: 233,025
- Median household income: $76,062
- Median home-sale price: $368,800
- Real estate market rank: 4
- Affordability rank: 145
- Quality of life rank: 20
6. Gilbert, Arizona
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- Population: 288,790
- Median household income: $121,351
- Median home-sale price: 593,500
- Real estate market rank: 17
- Affordability rank: 34
- Quality of life rank: 85
5. Huntsville, Alabama
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- Population: 230,402
- Median household income: $70,778
- Median home-sale price: $343,000
- Real estate market rank: 35
- Affordability rank: 36
- Quality of life rank: 43
4. Surprise, Arizona
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- Population: 167,564
- Median household income: $93,371
- Median home-sale price: $435,000
- Real estate market rank:
- Affordability rank: 1
- Quality of life rank: 207
3. Tampa, Florida
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- Population: 414,547
- Median household income: $71,302
- Median home-sale price: $435,000
- Real estate market rank: 5
- Affordability rank: 170
- Quality of life rank: 6
2. Boise, Idaho
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- Population: 237,963
- Median household income: $81,308
- Median home-sale price: $511,250
- Real estate market rank: 8
- Affordability rank: 61
- Quality of life rank: 27
1. Palm Bay, Florida
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- Population: 142,023
- Median household income: $67,521
- Median home-sale price: $327,000
- Real estate market rank: 2
- Affordability rank: 118
- Quality of life rank: 3
The worst cities for first-time homebuyers
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10. San Mateo, California
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- Population: 103,006
- Median household income: $152,669
- Median home-sale price: $1,725,000
- Real estate market rank: 261
- Affordability rank: 287
- Quality of life rank: 245
9. New Orleans
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- Population: 362,701
- Median household income: $55,339
- Median home-sale price: $385,000
- Real estate market rank: 195
- Affordability rank: 213
- Quality of life rank: 295
8. Anchorage, Alaska
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- Population: 289,600
- Median household income: $98,152
- Median home-sale price: $425,000
- Real estate market rank: 259
- Affordability rank: 152
- Quality of life rank: 298
7. Costa Mesa, California
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- Population: 109,131
- Median household income: $110,073
- Median home-sale price: $1,640,000
- Real estate market rank: 230
- Affordability rank: 297
- Quality of life rank: 188
6. Los Angeles
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- Population: 3,878,704
- Median household income: $80,366
- Median home-sale price: $1,124,000
- Real estate market rank: 255
- Affordability rank: 294
- Quality of life rank: 246
5. Santa Barbara, California
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- Population: 87,291
- Median household income: $101,672
- Median home-sale price: $1,632,500
- Real estate market rank: 227
- Affordability rank: 299
- Quality of life rank: 130
4. San Francisco
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- Population: 827,526
- Median household income: $141,446
- Median home-sale price: $1,500,000
- Real estate market rank: 273
- Affordability rank: 280
- Quality of life rank: 281
3. Oakland, California
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- Population: 443,554
- Median household income: $97,369
- Median home-sale price: $868,000
- Real estate market rank: 275
- Affordability rank: 231
- Quality of life rank: 300
2. Santa Monica, California
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- Population: 90,729
- Median household income: $109,739
- Median home-sale price: $1,605,000
- Real estate market rank: 252
- Affordability rank: 300
- Quality of life rank: 231
1. Berkeley, California
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- Population: 121,749
- Median household income: $108,558
- Median-priced home: $1,350,000
- Real estate market rank: 291
- Affordability rank: 296
- Quality of life rank: 296
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