Best housing markets for first-time homebuyers
Affordability is just one component of buying a new home. Hopeful first-time homebuyers would be prudent to consider the competitive landscape, lifestyle, social and future growth potential of their home. Taking on such a large investment, particularly when the costs of homeownership may outpace the costs of renting in some places, requires planning ahead in terms of your career and family, as well as your budget.
With this in mind, SmartAsset ranked 180 of the largest U.S. metro areas based on a variety of factors that may influence the buying process and long-term payoff for first-time homebuyers. These metrics include affordability relative to local median incomes, the level of housing inventory and demand for that inventory, projections of home-price growth, and the relative population of residents in their 20s and 30s.
Key Findings
McAllen, TX is the best metro area for first-time homebuyers in 2025. After ranking fourth last year, McAllen has replaced Lawton, OK as the number one metro area for hopeful homeowners. In particular, it offers positive projected home-price growth over the next year, moderate affordability with the median sale price of $204,499 being about four times as much as the median local income, and a market that allows potential buyers to take their time to make a decision before putting in an offer.
Midwestern metros have the most affordable homes relative to local incomes. Peoria and Decatur, IL rank first and second in the affordability metric, with local home sale prices averaging about twice the amount of the median annual income. Davenport, IA; Springfield, IL; Lawton, OK; Cedar Rapids, IA; St. Joseph, MO; and Muncie, IN metros are also among the least expensive. However, only the Lawton, OK metro makes the top 10 best metros for first-time homebuyers when considering other metrics.
Homes are on the market for less than a week in these metro areas. Bloomington, IL and Rockford, IL homes average just five days on the market before they go under contract, making it a competitive landscape for first-time homebuyers. The average days til pending is also just six days in the Ann Arbor, MI; Cincinnati, OH; and Springfield, IL metros.
These Florida metro areas have some of the highest inventory. Cape Coral has more than double the amount of homes per sale per local resident as Port St. Lucie, which ranks second in this metric. Also among Floridian metros with the highest inventory are Jacksonville, Lakeland and Tampa.
Top 20 Places for First-Time Homebuyers
1. McAllen, TX
Median sale price: $204,499
Median household income: $56,655
Income to sale-price ratio: 27.70%
Days to pending: 64
Inventory: 3,488
Inventory per capita: 0.003882151
One-year price change forecast: 40.0%
Percent aged 25 to 39: 20.02%
2. Lawton, OK
Median sale price: $150,007
Median household income: $59,843
Income to sale-price ratio: 39.89%
Days to pending: 25
Inventory: 493
Inventory per capita: 0.003891481
One-year price change forecast: -110.0%
Percent aged 25 to 39: 23.37%
3. Killeen, TX
Median sale price: $253,104
Median household income: $74,976
Income to sale-price ratio: 29.62%
Days to pending: 45
Inventory: 3,029
Inventory per capita: 0.00604188
One-year price change forecast: -100.0%
Percent aged 25 to 39: 23.54%
4. Warner Robins, GA
Median sale price: $232,822
Median household income: $79,903
Income to sale-price ratio: 34.32%
Days to pending: 19
Inventory: 658
Inventory per capita: 0.003277235
One-year price change forecast: 80.0%
Percent aged 25 to 39: 22.35%
5. Appleton, WI
Median sale price: $296,011
Median household income: $88,651
Income to sale-price ratio: 29.95%
Days to pending: 42
Inventory: 507
Inventory per capita: 0.002057354
One-year price change forecast: 130.0%
Percent aged 25 to 39: 19.24%
6. Fayetteville, NC
Median sale price: $255,157
Median household income: $64,636
Income to sale-price ratio: 25.33%
Days to pending: 19
Inventory: 1,781
Inventory per capita: 0.004539476
One-year price change forecast: 150.0%
Percent aged 25 to 39: 23.29%
7. Savannah, GA
Median sale price: $353,187
Median household income: $79,392
Income to sale-price ratio: 22.48%
Days to pending: 38
Inventory: 2,359
Inventory per capita: 0.005551437
One-year price change forecast: 60.0%
Percent aged 25 to 39: 22.71%
8. Clarksville, TN
Median sale price: $289,257
Median household income: $70,825
Income to sale-price ratio: 24.49%
Days to pending: 26
Inventory: 1,475
Inventory per capita: 0.004378661
One-year price change forecast: 60.0%
Percent aged 25 to 39: 24.14%
9. Cape Coral, FL
Median sale price: $344,037
Median household income: $75,539
Income to sale-price ratio: 21.96%
Days to pending: 59
Inventory: 20,066
Inventory per capita: 0.024043433
One-year price change forecast: -160.0%
Percent aged 25 to 39: 16.35%
10. Muncie, IN
Median sale price: $152,814
Median household income: $58,286
Income to sale-price ratio: 38.14%
Days to pending: 12
Inventory: 293
Inventory per capita: 0.002608595
One-year price change forecast: 160.0%
Percent aged 25 to 39: 18.41%
11. Peoria, IL
Median sale price: $142,080
Median household income: $72,327
Income to sale-price ratio: 50.91%
Days to pending: 11
Inventory: 928
Inventory per capita: 0.002563614
One-year price change forecast: -100.0%
Percent aged 25 to 39: 17.89%
12. El Paso, TX
Median sale price: $235,000
Median household income: $62,331
Income to sale-price ratio: 26.52%
Days to pending: 30
Inventory: 3,196
Inventory per capita: 0.003664873
One-year price change forecast: 70.0%
Percent aged 25 to 39: 22.11%
13. Eau Claire, WI
Median sale price: $259,763
Median household income: $79,378
Income to sale-price ratio: 30.56%
Days to pending: 43
Inventory: 453
Inventory per capita: 0.002590451
One-year price change forecast: 10.0%
Percent aged 25 to 39: 19.75%
14. Yuma, AZ
Median sale price: $306,083
Median household income: $66,397
Income to sale-price ratio: 21.69%
Days to pending: 49
Inventory: 828
Inventory per capita: 0.003883295
One-year price change forecast: 180.0%
Percent aged 25 to 39: 18.13%
15. Decatur, IL
Median sale price: $124,945
Median household income: $61,550
Income to sale-price ratio: 49.26%
Days to pending: 10
Inventory: 243
Inventory per capita: 0.002415723
One-year price change forecast: -150.0%
Percent aged 25 to 39: 18.66%
16. Huntsville, AL
Median sale price: $303,761
Median household income: $89,668
Income to sale-price ratio: 29.52%
Days to pending: 29
Inventory: 2,254
Inventory per capita: 0.004274979
One-year price change forecast: -10.0%
Percent aged 25 to 39: 20.83%
17. Youngstown, OH
Median sale price: $151,734
Median household income: $54,215
Income to sale-price ratio: 35.73%
Days to pending: 14
Inventory: 1,382
Inventory per capita: 0.003244368
One-year price change forecast: 100.0%
Percent aged 25 to 39: 18.39%
18. Green Bay, WI
Median sale price: $325,239
Median household income: $80,421
Income to sale-price ratio: 24.73%
Days to pending: 40
Inventory: 791
Inventory per capita: 0.002383377
One-year price change forecast: 120.0%
Percent aged 25 to 39: 18.79%
19. Jonesboro, AR
Median sale price: $191,251
Median household income: $61,817
Income to sale-price ratio: 32.32%
Days to pending: 38
Inventory: 738
Inventory per capita: 0.005410954
One-year price change forecast: -210.0%
Percent aged 25 to 39: 20.78%
20. Syracuse, NY
Median sale price: $231,720
Median household income: $77,356
Income to sale-price ratio: 33.38%
Days to pending: 7
Inventory: 807
Inventory per capita: 0.001235918
One-year price change forecast: 200.0%
Percent aged 25 to 39: 18.66%
Data and Methodology
This SmartAsset study examined 180 metro areas for which data was available. Metro areas are ranked based on four metrics, composed of:
Affordability. Median sale price relative to median income.
Median sale price comes from Zillow (Smooth, All Homes, Monthly) for 4/30/2025.
Median income comes from the U.S. Census Bureau’s 1 Year ACS. The data is from 2023, adjusted for wage growth of 5.58% through April 2025 per FRED.
Growth potential.
Zillow’s Home Value Forecast; All Home Forecast, 1 Year; Homes (SFR, Condo/coop), smoothed. 4/30/2026
Competition.
Median days to pending, Zillow. 4/30/2025
Inventory per capita
Zillow: For-Sale Inventory, All Homes, Smoothed, Monthly
U.S. Census Bureau 1 year ACS 2023
Social.
Population aged 25-39: U.S. Census Bureau one year ACS 2023
This story was produced by SmartAsset and reviewed and distributed by Stacker.
