Housing News

The 10 Best—and 10 Worst—Cities for First-Time Homebuyers in 2024

July 17, 2024

First-time homebuyers trying to figure out where to live may want to start their property searches in the Sunshine State.

Florida is one of the best states in the U.S. to buy a home for first-time homebuyers, according to a WalletHub report. Six out of the top 10 best cities for aspiring homeowners are in Florida.

Palm Bay, Florida, about 75 miles southeast of Orlando, Florida on the coast, was named the best city overall for first-time buyers. It ranked third in both the real-estate market and quality of life and 122^nd in affordability.

"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," said WalletHub analyst Cassandra Happe in a statement.

Palm Bay had the third-highest Millennial homeownership rate in the nation, according to WalletHub.

The median home price in the Palm Bay market was $313,940 in June, according to Zillow. That was up 1.3% year-over-year.

First-time homebuyers shouldn't just prioritize affordability when purchasing a home. They should also consider things like the local school systems, public safety, and commuting distances, said Mike Mei, an economics professor at Colgate University in Hamilton, New York. This affects quality of life.

"It is important to view homebuying as a long-term decision, considering future household needs," said Mei in a statement.

WalletHub ranked 300 cities using 22 metrics across three key elements: affordability, real estate markets, and quality of life.

Affordability includes things like the average cost of homeowner's insurance, cost of living, and tax rates. The real-estate market ranking factors in appreciation rates, foreclosure rates, and the homeownership rate for millennials. Quality of life includes school systems, the job market, and crime rates.

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What are the best cities for first-time homebuyers?

The top three cities for first-time buyers were in Florida.

Cape Coral, about two hours south of Tampa, Florida, came in second. It was followed by Port St. Lucie, just under an hour south of Palm Beach.

These are the best cities for first-time homebuyers, according to WalletHub.

Palm Bay, Florida
Cape Coral, Florida
Port St. Lucie, Florida
Tampa, Florida
Orlando, Florida
Surprise, Arizona
Lakeland, Florida
Boise, Idaho
Gilbert, Arizona
Henderson, Nevada

What are the worst cities for first-time homebuyers?

Conversely, eight out of the bottom 10 worst cities for first-time homebuyers are in California. That's largely because real estate prices and the cost of living are so high in the state.

Berkeley, California, outside of San Francisco, is ranked last overall. It ranked 263^rd in real estate market, 281^st in quality of life, and 297^th in affordability.

Below are the 10 worst places for first-time buyers to purchase a home, according to WalletHub.