The ultimate list: The 10 best U.S. cities to buy your first home
SmartAsset ranks McAllen, Texas is the best city in the United States for first-time buyers based on price and market trends.
In terms of decisions with substantial financial implications, purchasing one's first home takes the cake and location contributes to its worth. A recent report from SmartAsset examined numerous indicators to determine the best U.S. cities for first-time homebuyers.
The study examined home affordability compared to local incomes, available housing stock, expected appreciation in local home values, and the percentage of the local population represented by young adults. McAllen, Texas, was the top city in the country.
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McAllen leads for its balance of price and growth
McAllen earned top honors due to a median home price of $204,499 and an average price-to-income ratio with homes costing about four times the area's average income. McAllen also offered a positive growth forecast for home values, making it a favorable location for long-term investment in one's home.
The report also suggests that McAllen has a slower-moving housing market, which allows first-time buyers plenty of time to consider their options before making an offer—an advantage that new homeowners should take full advantage.
The list of the best cities for first-time home buyers is helpful considering the economic aspect. Photo: Houwzer
Top 10 U.S. cities for first-time homebuyers
Here are the top-ranked cities:
- McAllen, Texas – Median home price: $204,499
- Lawton, Oklahoma – Median home price: $150,007
- Killeen, Texas – Median home price: $253,104
- Warner Robins, Georgia – Median home price: $232,822
- Appleton, Wisconsin – Median home price: $296,011
- Fayetteville, North Carolina – Median home price: $255,150
- Savannah, Georgia – Median home price: $353,187
- Clarksville, Tennessee – Median home price: $289,257
- Cape Coral, Florida – Median home price: $344,037
- Muncie, Indiana – Median home price: $152,814
Cities with the best affordability-to-income ratios
As well as ranking the cities overall, SmartAsset’s report identified the cities with the best home affordability relative to income. The majority of the Midwestern metro areas were in this category:
- Peoria and Decatur, Illinois, ranked 1st and 2nd, respectively, at median home prices of about twice the average income of the area.
- Also affordable were Davenport (Iowa), Springfield (Illinois), Lawton (Oklahoma), Cedar Rapids (Iowa), St. Joseph (Missouri), and Muncie (Indiana).
