First-time homebuyers decreased to just 24% of the market share in 2024, down from 32% a year prior and the lowest share since the National Association of Realtors began collecting data in 1981. And it’s generally taking longer for Americans to buy homes: The median first-time buyer age increased to 38 years old from 35 in 2023.
A lack of affordability and inventory, paired with high mortgage rates, have kept many young people from buying homes. While the housing market isn’t expected to see drastic improvements in 2025, there are cities that could be ripe for first-time homebuyers this year, according to a Realtor.com (NWSA) analysis.
To find the top cities for first-time buyers, Realtor.com scored some of the largest cities across the country based on: median listing price, aggregate location score, number of for-sale listings per 1,000 households, percentage of households with owners aged 25-34, average length of commutes to work, forecasted unemployment rate, and projected sales growth and median listing price growth in 2025.
Click through to see the 10 best cities for first-time homebuyers in 2025.
Coming in at no. 10 is Wilmington, where the median list price of a home as of November 2024 is $222,000. At that price, homes in the city are 4.1 times the median income.
The city of Tonawanda, less than a 30-minute drive from Niagara Falls, is ninth on Realtor.com’s list. Homes in Tonawanda have a median list price of $229,000, with a 2.9 price-to-income ratio.
Baltimore is the eighth-best city for first-time homebuyers in 2025. The city has a median list price of $210,000 and a price-to-income ratio of 3.3.
The twin city of Little Rock, North Little Rock ranks at no. 7 on Realtor.com’s list of top cities for first-time buyers. Homes here are listed for a median price of $160,000, resulting in a price-to-income ratio of 3.3.
With a median list price of $135,000 and a 2.6 price-to-income ratio, this state capital is the sixth-best city for first-time buyers in 2025, according to Realtor.com.
Altamonte Springs in central Florida cracked the top 5, with a median list price of $229,400 and a 3.6 price-to-income ratio.
At no. 4 is Lauderdale Lakes, a city in the Miami metropolitan area. As of November, homes in this city are listed for a median price of $154,850, making them 2.7 times buyers’ median income.
On Florida’s west coast is the unincorporated community of Villas, which Realtor.com ranked as the third-best place for first-time buyers. It has a median list price of $236,950, and a 3.4 price-to-income ratio.
Rochester is the no. 2 city in the U.S. for first-time buyers in 2025. Homes in this upstate New York city are listed for a median price of $129,900, 2.5 times the median income of the area.
Taking the top spot for first-time homebuyers in 2025 is Harrisburg, the capital of Pennsylvania, where homes hsve a median list price of $140,000 for a 2.6 price-to-income ratio.
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