The best US markets for first-time homebuyers… with an unexpected state leading the charge

Buying a home has become a challenge for first-time buyers in the US housing market.

Listing and mortgage prices have remained high and in 2024 only 24 percent of homebuyers were first-time buyers – the lowest on record, according to the report National Association of Real Estate Agents.

However, some US cities can give these buyers a chance to find their first home.

The sooner they make an offer, the better — especially in the 10 cities that Realtor.com ranked as the best this year best markets for first-time homebuyers.

Realtor.com scored 3,579 Census-Designated Places in the 100 largest metropolitan areas in the U.S. and ranked the top 10 cities with at least 5,000 residents and at least 500 active for-sale listings in the past year.

“The places highlighted offer opportunities for first-time buyers in terms of the cost of housing, the availability of homes for sale and the quality of location,” said Danielle Hale, chief economist at Realtor.com.

“Even in these high opportunity areas, there are likely trade-offs to be made before buyers can get to the closing table.”

Of the ten cities on the list, Harrisburg, the capital of Pennsylvania, is the one that stood out from the rest.

Harrisburg, Pa

Harrisburg’s median home price is $140,000, according to Realtor.com.

With an interest rate of 7 percent and a buyer putting down just 3.5 percent, monthly payments would be less than $1,300 per month.

“Honestly, it’s a little easier to buy a house than rent an apartment in Harrisburg,” Chris Timmons, the owner of an independent real estate brokerage in the area, told Realtor.com.

“If you rent an apartment from a property manager, you often need a higher credit score than to get an FHA mortgage, and you still need the first and last month’s rent to move in.”

“So they look at it like, ‘Why not buy?'”

Harrisburg also has a large number of low-priced townhomes, and the city currently has a strong economy and a low unemployment rate.

“A lot of the younger people I’ve talked to don’t think of it as buying a house so much as an investment,” Timmons added.

“Their attitude seems to have changed from the generations a while ago where a house is a house, and they never quite saw it as an investment.”

Rochester, New York

Rochester, New York, took second place, with a median home price of $129,900.

The city had the lowest price-to-income ratio on the list, with the typical home costing 2.5 times media revenue, Realtor.com reported.

About 22 percent of homeowners in Rochester are expected to be between the ages of 25 and 34, 8 percent higher than the average for all ten cities in the report.

Realtor.com noted that the main reason Rochester ranks second on the list is the low supply of homes on the market.

One factor that first-time homebuyers may want to consider is purchasing a new construction home Keller Williams Realty Greater Rochester.

The team also advised homebuyers to purchase a home in 2025 if mortgage rates stabilize or decline.

Villas, Florida

Villas, Florida, outside Ft. Meyers, came in at number 3.

It had the highest media home price – $236,950 – of the top 10 cities on the list. That’s still about $180,000 below the national average.

There are currently 126 homes for sale in the Florida city and homes tend to sell on average 91 days after you are listed on the market.

Lauderdale Lakes, Florida

Lauderdale Lakes in the suburb of Fort Lauderdale has a median home price of $154,850.

According to Realtor.com, it has a sales-to-price ratio of 96 percent, meaning it’s more of a buyer’s market than a seller’s market.

On average, homes here sell after 74 days on the market and there are currently more than 600 homes for sale between $5,000 and $1.6 million.

Altamonte Springs, Florida

Unlike Lauderdale Lakes, Altamonte Springs outside Orlando has a much higher median home price of $229,400.

It is a balanced market, which means that supply and demand for housing in this city are equal.

According to Realtor.com, homes in Altamonte Springs typically sell for 2.15 percent below asking price and usually sell after 89 days.

Lansing, Mich

Lansing is the only city in the Midwest to make the top 10.

It has a median home price of $135,000, the second lowest on the list.

The city is home to a General Motors factory, and its growth in the technology and small business sectors has benefited the job market, according to Jeff Burke & Associations.

“For first-time homebuyers, this translates into a reliable income base, increasing confidence in their ability to manage mortgage payments and the costs of homeownership,” the website says.

North Little Rock, Arkansas

North Little Rock, Arkansas, a sister city to Little Rock, has a median home price of $160,000.

Factors that have attracted first-time homebuyers include the healthy economy and employment opportunities.

North Little Rock currently has over 850 homes for sale on Realtor.com and currently has a balanced market.

Homes in North Little Rock typically sell 71 days after being put on the market.

Baltimore, Maryland

Baltimore has the largest population of any city on this list, with a median home price of $210,000.

Two factors that contribute to Baltimore’s affordability are the city’s reasonable grocery and healthcare costs Definitely sales group.

Realtor.com estimates that 19.9 percent of home buyers in Baltimore will be between the ages of 25 and 34.

Tonawanda, New York

The city just north of Buffalo, New York, currently has a median sales price of $229,900.

Realtor.com predicted that about 14.2 percent of buyers this year will be between the ages of 25 and 34.

Although Tonawanda has a strong labor market, it has faced economic challenges in the housing market.

It has also been a seller’s market since 2023, according to Rocket Homes data from December 2024.

Wilmington, Delaware

Wilmington, Delaware rounded out the top 10 with an average listing price of $222,000.

The average cost of living in Wilmington is lower than other Delaware cities and there is a high employment rate, according to the Office of Economic Development (OED).

As of December 2024, almost all homes on the market in Wilmington had sold for around the average asking price.