Best Housing Markets in Major U.S. Cities for First-Time Buyers – 2025
Affordability is only one factor to consider when purchasing a new home.
First-time homebuyers should carefully consider the competitive market, lifestyle fit, social environment, and long-term growth potential of any home they’re considering. Purchasing a home is a significant investment—especially in areas where the cost of ownership may exceed the cost of renting. It’s important to plan ahead, not only financially but also in terms of career goals and family needs.
To evaluate the best markets for first-time homebuyers, researchers analyzed 180 of the largest U.S. metro areas using a range of factors that impact both the homebuying process and long-term investment potential. These included affordability compared to local median incomes, housing supply and demand, projected home-price appreciation, and the concentration of residents in their 20s and 30s.
McAllen, TX has claimed the top spot as the best metro area for first-time homebuyers in 2025, moving up from fourth place last year and replacing Lawton, OK. The city stands out for its forecasted home-price growth, relatively affordable housing—with a median sale price of $204,499, roughly four times the median local income—and a buyer-friendly market that gives shoppers the flexibility to make thoughtful decisions before submitting an offer.
Midwestern metro areas offer the most affordable homes compared to local incomes, with Peoria and Decatur, Illinois leading the way—where average home prices are roughly twice the median annual income. Other notably affordable metros include Davenport, Iowa; Springfield, Illinois; Lawton, Oklahoma; Cedar Rapids, Iowa; St. Joseph, Missouri; and Muncie, Indiana. However, when factoring in additional criteria important to first-time buyers, only the Lawton, OK metro ranks among the top 10 best places to buy a first home.
In several metro areas, homes are flying off the market in under a week. In Bloomington and Rockford, Illinois, the average time on the market is just five days before going under contract—creating a highly competitive environment for first-time buyers. Homes in Ann Arbor, Michigan; Cincinnati, Ohio; and Springfield, Illinois also sell quickly, with an average of just six days until they go pending.
Several Florida metro areas have some of the highest rates of homes for sale. Cape Coral, which ranks second overall for first-time homebuyers despite its older population, has more than twice as many homes for sale per resident as Port St. Lucie, the next closest metro in this category. Jacksonville, Lakeland, and Tampa also rank in the top 10 for this metric.
