These U.S. metro areas are among the best for first-time homebuyers

Tips for buying homes with idiosyncratic other

What to see erstwhile buying a location with idiosyncratic else 04:00

With owe rates and lodging prices still stubbornly elevated, imaginable homebuyers are looking for ways prevention wherever they can. 

The median merchantability terms for a location successful the first-quarter of 2025 was implicit $400,000, according to the Federal Reserve Bank of St. Louis. Mortgage rates, meanwhile, proceed to hover astir 7% — up from a grounds debased of 2.65% successful January 2021. Moody's determination to downgrade the U.S.' recognition standing briefly pushed rates above the 7% threshold earlier this month.

While homebuyers cannot power median location prices and owe rates, their prime of metropolis oregon municipality to bargain successful tin play a defining relation successful however overmuch they extremity up spending connected a property. Certain locales volition connection much affordable listings and a wider scope of options to take from — giving buyers thing to deliberation astir arsenic they determine wherever to marque their adjacent investment.

A recent study from SmartAsset ranks the champion cities for first-time buyers — providing a cheat expanse of sorts for those connected the hunt for a caller home. The fiscal exertion institution looked astatine 180 U.S. cities and ranked their entreaty for first-time buyers based connected affordability, disposable lodging inventory, request and however overmuch location prices are expected to displacement successful the country implicit the adjacent year.

Here is simply a breakdown of the cities that volition springiness first-time homebuyers the champion bang for their buck.

Best spot to bargain overall

McAllen, Texas, located connected the state's confederate tip, claimed the No. 1 spot connected SmartAsset's list. A large selling constituent for the borderline metropolis is that lodging prices are forecast to alteration conscionable 0.4% implicit the adjacent year, meaning that buyers tin remainder assured the marketplace won't fluctuate excessively wildly arsenic they hunt for the close home. 

The median merchantability terms for homes successful McAllen — $204,499 — is astir 4 times arsenic overmuch arsenic the median section income, giving buyers much mean wiggle country erstwhile it comes to affordability. 

Best successful affordability

When looking solely astatine affordability — the median merchantability terms of a location comparative to the median section income — Midwestern metro areas reign. Illinois cities Peoria and Decatur apical the ranking successful affordability, according to SmartAsset. Other locales location hunters whitethorn privation to support an oculus connected see Cedar Rapids, Iowa; Davenport, Iowa; Muncie, Indiana; Springfield, Illinois; and St. Joseph, Missouri, which are among the slightest costly metro areas, according to the study.

While Midwestern cities ranked higher successful affordability than others, lone Lawton, Oklahoma, wherever homes person a median merchantability terms of $150,007, made it into SmartAsset's apical 10 cities for first-time homebuyers overall. 

Best spot for expanded inventory

One of biggest issues plaguing the lodging marketplace is the constricted proviso of homes for merchantability While studies show that the inventory of disposable properties is rising successful galore markets, immoderate metro areas are inactive suffering from shortages, which increases contention and prices for homebuyers.

If you're looking for much robust inventory, you whitethorn privation to see heading south. Cape Coral, Florida, offers the top fig of homes for merchantability per capita, according to SmartAsset, followed by Port St. Lucie, Florida.

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