In 1950, the average first-time homebuyer was typically in their early 20s. Driven by post-WWII economic growth, the GI Bill, and the rapid expansion of suburbs, young adults were able to buy starter homes early in life. Today, according to the National Association of Realtors (NAR), the typical age of first-time buyers has climbed to an all-time high of 40 years. “Unfolding in the housing market is a tale of two cities,” explains Jessica Lautz, NAR deputy chief economist and vice president of research. “We’re seeing buyers with significant housing equity making larger down payments and all-cash offers, while first-time buyers continue to struggle to enter the market.” That struggle is being caused by higher home prices, elevated mortgage rates, and rising ownership costs in many parts of the country. As a result, choosing the right city can be just as important as choosing the right home. According to WalletHub’s 2026 Best & Worst Cities for First-Time Home Buyers report, first-time buyers accounted for just 21% of home purchases last year, well below the historical average of 40%. In this guide, we’ll break down WalletHub’s top 10 cities for first-time home buyers, explain why each earned its ranking, and highlight what prospective buyers should know before making a move. To identify where first-time buyers have the greatest opportunity, WalletHub evaluated 300 U.S. cities using 22 metrics grouped into three broad categories: Looking beyond home prices provides a more complete picture of where first-time buyers are most likely to succeed. “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,” says Chip Lupo, WalletHub analyst. What makes a city best for you as a first-time buyer may not be the same as other buyers. Affordability might be your highest priority, while others might be willing to spend more for stronger schools, a shorter commute, or better long-term appreciation potential. With this in mind, WalletHub’s rankings reveal several cities that consistently perform well across the factors that matter most to first-time buyers. Let’s take a closer look at WalletHub’s top 10 best cities for first-time home buyers: Palm Bay claims the top spot in WalletHub’s 2026 rankings by offering one of the most balanced environments for first-time buyers. Rather than excelling in just one area, the Space Coast city scores well across several factors that can make buying a first home easier, from finding available listings to building equity over time. According to WalletHub, Palm Bay ranks among the nation’s leaders for active home listings per capita and new building permits per capita, giving buyers more choices than they might find in many similarly sized markets. “Palm Bay has the fourth-highest millennial homeownership rate and the fourth-highest home appreciation rate in the country,” says Lupo. “Home buyers will also benefit from Palm Bay’s low property-crime rate.” If you choose Palm Bay, you can expect to find a mix of established neighborhoods and newer residential developments, along with convenient access to major employers in aerospace, defense, healthcare, and technology throughout Brevard County. Once considered a quiet Phoenix suburb, Surprise has transformed into one of the fastest-growing communities in the Valley of the Sun. The city offers expanded housing options while giving first-time buyers access to suburban living without moving too far from the region’s employment centers. WalletHub ranked Surprise second overall because of its strong performance across affordability, housing availability, quality-of-life measures, and appreciation — it has the 18th-highest home price appreciation rate in the country. The city’s steady population growth has been accompanied by new neighborhoods, shopping centers, parks, and community amenities that appeal to young professionals and growing families alike. While commuting to downtown Phoenix may not suit every buyer, many residents work throughout the broader metropolitan area, where employment opportunities span healthcare, education, manufacturing, logistics, and technology. If you’re willing to trade a longer commute for newer houses and more neighborhood amenities, you may find Surprise offers an attractive balance of benefits when shopping for your first home. Located roughly 25 miles from Phoenix, Gilbert has evolved from a small agricultural community into one of the metropolitan area’s most sought-after suburbs, earning WalletHub’s No. 3 ranking for first-time home buyers. The city stands out for its highly regarded schools, extensive parks and recreation system, well-planned residential neighborhoods, and its Heritage District, considered the vibrant, bustling heart of the Southeast Valley. This combination of benefits attracts young families and professionals. While home prices can be higher than in some nearby communities, many buyers are drawn to the city’s reputation for safety, quality of life, and long-term stability. You’ll find a broad selection of single-family homes, townhomes, and newer developments. The city’s location also provides convenient access to employment hubs throughout the East Valley, including nearby Chandler, Mesa, and Tempe. As the largest city in WalletHub’s top 10, Tampa proves that first-time buyers don’t necessarily have to choose between big-city opportunities and homeownership. Ranked No. 4 overall, Tampa’s diverse economy attracts buyers from across the country. Unlike many large metros where affordability has pushed first-time buyers to the sidelines, Tampa remains competitive thanks to its broad mix of housing options, from downtown condos and townhomes to suburban single-family neighborhoods. New buyers also benefit from a strong job market anchored by healthcare, financial services, technology, education, and the region’s busy port. While you should budget carefully for ongoing expenses, such as higher homeowners insurance and property taxes — both important considerations throughout Florida — Tampa is a market with long-term growth potential and a high quality of life. As the smallest city on this list, Yuma may not receive as much national attention as Phoenix or Tucson, but WalletHub ranked it fifth overall thanks to its affordability and favorable conditions for first-time buyers. Located in Arizona’s southwest corner near the California and Mexico borders, Yuma benefits from a relatively low cost of living and housing prices that remain accessible compared to many larger Western markets. The local economy is supported by agriculture, military operations, healthcare, and cross-border commerce, providing a stable employment base for many residents. You’ll find a mix of established neighborhoods and newer developments, along with a slower pace of life than Arizona’s largest metropolitan areas. However, new buyers should also consider that Yuma is officially recognized as the second-hottest city in the U.S. and the sunniest city in the world. It typically experiences over 120 days a year with temperatures topping 100°F. Peoria is the fourth Arizona city to earn a spot in WalletHub’s top 10, reinforcing the state’s growing reputation as a strong destination for first-time home buyers. Stretching across the northwestern Phoenix metro, Peoria has experienced steady residential growth over the past two decades. New subdivisions, expanding retail centers, and convenient freeway access have helped attract both young professionals and families looking for more space. As with other Arizona cities on this list, you’ll find a wide variety of housing options, from established neighborhoods with mature landscaping to newly built homes in master-planned communities. If you choose Peoria, you’ll also find the city offers favorable access to employment throughout the Phoenix area. This can provide you with more flexibility as you search for a home that fits both your needs and your budget. Boise’s housing market made national headlines during the pandemic as rapid population growth sent home prices soaring. While the pace of appreciation has moderated, WalletHub’s No. 7 ranking suggests the Idaho capital continues to offer many of the ingredients first-time buyers value most. The city combines a strong local economy with neighborhoods that appeal to a wide range of buyers. The city has also added new housing in recent years, helping create a more balanced market than buyers encountered during the height of the pandemic buying frenzy. Although affordability isn’t what it once was, if you buy in Boise, you’ll find a vibrant, booming city offering a walkable, amenity-rich downtown and access to mountains, rivers, and outdoor trails. It’s celebrated for its casual, unpretentious community. Chandler’s place in the top 10 reflects more than just its housing market; it also speaks to the city’s economic strength. Home to major employers in the semiconductor and technology industries, including Intel, Chandler has built one of the strongest employment bases in metropolitan Phoenix. That economic stability has supported consistent housing demand while helping the city develop a broad mix of neighborhoods, schools, and community amenities. As a first-time buyer, you can choose from condos, townhomes, and single-family houses across neighborhoods ranging from established communities to newer developments. Its location also offers convenient access to Tempe, Mesa, Scottsdale, and downtown Phoenix. While many people associate Orlando with Walt Disney World, SeaWorld, and other tourism resorts, today’s housing market is supported by a much more diverse economy than just theme parks. WalletHub ranked Orlando ninth overall based on its blend of housing opportunities and quality-of-life factors. Along with hospitality, the region has become a hub for healthcare, aerospace, higher education, simulation technology, and professional services, attracting a growing workforce from around the country. You can choose from urban condos near downtown, suburban master-planned communities, and established neighborhoods throughout the metropolitan area. Like elsewhere in Florida, you should carefully consider insurance costs alongside your mortgage payment when evaluating affordability. Rounding out WalletHub’s top 10 is Murfreesboro, one of the fastest-growing communities in the Nashville metropolitan area. As Nashville’s popularity has pushed home prices higher, many buyers have expanded their search to nearby cities like Murfreesboro (about 35 miles southeast), where they can find more attainable housing without giving up access to the region’s job market. The city also benefits from a growing local economy, Middle Tennessee State University, and ongoing residential development. As a first-time buyer, Murfreesboro offers a blend of newer neighborhoods, established communities, and a family-friendly atmosphere, making it an increasingly popular choice for new buyers seeking value in Middle Tennessee. This year’s rankings highlight an important trend: many of the best places for first-time buyers aren’t the country’s biggest or most expensive housing markets. Instead, they’re growing cities that offer a combination of attainable home prices, expanding housing supply, and strong long-term potential. Arizona dominates this year’s rankings, with five cities earning spots in the top 10: Surprise (No. 2), Gilbert (No. 3), Yuma (No. 5), Peoria (No. 6), and Chandler (No. 8). Four of those cities are part of the greater Phoenix metropolitan area, underscoring the region’s continued appeal for first-time home buyers. While each of these cities has its own strengths, they all share characteristics that can benefit buyers entering the market: If you’re considering one of these Arizona cities, you may find that continued residential development will give you more housing choices than you may find in older, more land-constrained metro areas. Florida placed three cities in the top 10, led by Palm Bay (No. 1), along with Tampa (No. 4) and Orlando (No. 9). Rather than relying on a single type of market, Florida’s highest-ranked cities offer three different paths to homeownership. If you’re comparing Florida cities, be certain to research and budget for ongoing ownership costs, especially homeowners insurance. One of the clearest themes running through WalletHub’s rankings is the importance of housing availability. According to a recent nationwide HomeLight survey, nearly half of all loan officers (46%) said the lack of affordable starter homes is the No. 1 obstacle preventing qualified first-time buyers from purchasing a home. Only 14% said interest rates were the biggest barrier. Several top-ranked cities scored well because buyers have more homes to choose from, whether through active listings, new construction, or both. That’s an important advantage in today’s market, where limited inventory continues to challenge buyers in many parts of the country. As Lupo noted, the best cities don’t simply have lower home prices — they also provide “a lot of housing choices,” giving first-time buyers a better chance of finding a home that fits both their needs and budget. Not surprisingly, 9 out of 10 of this year’s lowest-ranked cities for first-time home buyers are located in some of California’s most expensive housing markets. WalletHub’s 10 worst cities for first-time home buyers are: High home prices, limited affordability, and elevated ownership costs can create significant barriers for buyers trying to purchase their first house, even in places with strong job markets and desirable amenities. WalletHub’s broader findings reinforce just how wide those affordability gaps can be. For example: You can review WalletHub’s full list of the best first-time home buyer cities on their website, wallethub.com. While the list can help you identify markets that may deserve a closer look, take time to research individual neighborhoods and identify a city that fits your budget and lifestyle. Remember to look beyond the purchase price. Compare monthly ownership costs (e.g., taxes, insurance, utilities, HOA fees) and consider factors like housing inventory, local amenities, commute times, and long-term growth potential. Once you’ve identified a city, get preapproved so you know exactly what you can afford. You can also try our Home Affordability Calculator. An experienced local real estate agent can provide valuable insight into market conditions, help you evaluate your options, and guide you through the buying process. If you’re ready to take the next step, HomeLight’s free Agent Match platform can connect you with a top-performing local agent based on your goals and the market where you’re buying. We analyze millions of transactions and thousands of real customer reviews.How WalletHub ranked first-time home buyer cities
The 10 best cities for first-time home buyers
Rank
City
Why it stands out
1
Palm Bay, Florida
Inventory, appreciation, and low crime
2
Surprise, Arizona
Growing suburb with attainable housing
3
Gilbert, Arizona
Strong schools and stable neighborhoods
4
Tampa, Florida
Employment opportunities and housing choices
5
Yuma, Arizona
Affordability and value
6
Peoria, Arizona
Expanding housing supply
7
Boise, Idaho
Long-term appreciation potential
8
Chandler, Arizona
Technology-driven economy
9
Orlando, Florida
Diverse economy and housing options
10
Murfreesboro, Tennessee
Nashville-area affordability
1. Palm Bay, Florida
2. Surprise, Arizona
3. Gilbert, Arizona
4. Tampa, Florida
5. Yuma, Arizona
6. Peoria, Arizona
7. Boise, Idaho
8. Chandler, Arizona
9. Orlando, Florida
10. Murfreesboro, Tennessee
What these rankings reveal about today’s first-time homebuyer market
Arizona’s suburbs continue to stand out
Florida offers choices in coastal and non-coastal markets
Supply still matters
The 10 worst cities for first-time home buyers
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