Best cities for first-time homebuyers

The five best cities for first-time homebuyers

Congratulations, you’re ready to buy your first home! But where should you put down roots? The five best cities for first-time homebuyers all boast affordable monthly payments, a bustling housing market and opportunities for millennial and Generation Z buyers. Keep reading to find out which cities scored the highest on our list.

1. Chesapeake, Virginia

The city of Chesapeake was officially formed in 1963 — but it has a rich history, with the first settlement in the area dating to 1620. This historic city, though, is anything but antiquated. Younger generations are flocking to Chesapeake, where the Gen Z and millennial homeownership rate is 23.9%. That’s the second-highest rate among the nation’s largest cities and an especially notable stat, since the median age of first-time homebuyers in 2024 was a record-high 38 years old.

There’s a lot of fun to be had in Chesapeake, too. First-time homebuyers can take advantage of the city’s 80-plus public parks, visit its preserved historic sites and even pick their own peaches at one of Chesapeake’s farms.

Key findings:

• Great affordability: The median home price in Chesapeake is only 3.4 times the city’s median income, making it the 10th lowest ratio among the nation’s largest cities.
• Bustling homebuying market: Homes in Chesapeake spend a median of just 22 days on the market, the second-fastest turnover among the cities on our list.

2. Virginia Beach, Virginia

Virginia is for lovers — and for first-time homebuyers. The first two cities on our list are both located in southeast Virginia. Virginia Beach ranks second on our list because of its strong affordability ratio and low rate of violent crime (0.95 crimes per 1,000 people). Like in Chesapeake, homes in Virginia Beach spend a median of only 22 days on the market before selling.

There’s more to Virginia Beach than just numbers. It’s been voted one of the happiest destinations in the United States, with over 38 miles of beaches along the ocean and bay. Ready to relocate to Virginia? Learn more about the cost of living for Virginia residents.

Other key points about Virginia Beach:

• Going green: Nearly 70% of Virginia Beach residents live within a 10-minute walk of green space.
• Hustle and bustle: Virginia Beach is the largest of the five best cities for first-time homebuyers, with a population over 457,000.

3. Fort Wayne, Indiana

Early settlers and Native American residents of Fort Wayne considered the city a crossroads because of its proximity to three nearby rivers. Today, Fort Wayne could be considered a crossroads to the rest of the Midwest: Chicago, Detroit, St. Louis and Toronto are all within driving distance of the second-largest city in Indiana.

Homebuyers may choose Fort Wayne for its affordable mortgage payments (an average of $1,553 per month with 20% down) and excellent home appreciation rate (6.7%, the highest among the top five cities). They’ll call it “home” for the vibrant parks, museums and arts districts that Fort Wayne has to offer. If you’re ready to join them, check out the best moving companies in Fort Wayne.

Important metrics: 

• Low barrier to entry: Fort Wayne has the lowest median home sale price among the top cities, at $232,678.
• Flash sale: Homes for sale in Fort Wayne spend a median of only 28 days on the market. As of January 2025, the United States national average was 73 days.

4. Aurora, Illinois

Aurora is just over 40 miles from Chicago, but residents don’t need to commute to the Windy City for a good time. Touring Broadway productions, river kayaking tours and a bustling Christmas market are all just around the corner in Aurora. This northeastern Illinois city also has a thing for records: The state's largest water park and Chicagoland’s largest outlet mall are both located in the Aurora area.

Of course, one key feature of Aurora homeownership is affordability. The median home price is only 3.4 times the city’s median income — the ninth-lowest ratio among the nation’s largest cities.

More key points about Aurora:

• High appreciation rates: Aurora boasts a high home appreciation rate of 6.3% between 2023 and 2024, well above the national figure of 3.4%
• Great access to parks: Nearly 85% of Aurora residents can walk to a park within 10 minutes. Aurora also has the highest walkability score among our top five cities, at 39.4, just below the national average.

5. Gilbert, Arizona

Gilbert, Arizona, isn’t just any suburb of Phoenix — it’s actually been declared “Phoenix’s coolest suburb.” Its downtown, called the Heritage District, is full of dining and shopping opportunities and art events.

Our research shows Gilbert to be more than a good time. Residents can enjoy a low unemployment rate (2.4%, well below the national average of 3.3%) and an affordable standard of living. If you’re wondering about the cost of living in Arizona, we’ve got you covered: The median home price in Gilbert is only 3.7 times the city’s median income, well below the national ratio of 4.5.

Other stats about Gilbert:

• Young homeowner’s paradise: Young generations of homebuyers will find themselves at home in Gilbert, where Gen Z and millennials together have a homeownership rate of 26.8%. That’s the highest percentage of all cities on our list.
• Safe and sound: Gilbert’s low rates of violent crime (1.18 crimes per 1,000 people) and property crime (9.45 per 1,000 people) make it one of the safest of the nation’s largest cities.

Which cities are the worst for first-time homebuyers?

Some cities woo first-time homebuyers with low monthly payments, high home appreciation rates and promises of safety and nearby green space. These are not those cities. The worst cities for first-time homebuyers have two major things in common: high median home prices and low affordability.

1. Oakland, California
2. Newark, New Jersey
3. San Jose, California
4. Los Angeles, California
5. San Francisco, California

Why are these cities the absolute worst for first-time homebuyers? They’re just too expensive. Not one of these cities has a monthly mortgage payment under $4,500 — and some, including Oakland and San Francisco, stretch above the $7,000 range. With prices this high, young buyers struggle to get into the market. The millennial and Gen Z homeownership rate in Newark is only 5.4%, placing it dead last on our list.

How do the largest cities rank for first-time homebuyers?

Whether you’re looking for a city with a low cost of living or curious about how different costs treat different generations of buyers, it’s a good idea to see the data for yourself. Dive into the table below to find out how the largest cities in the U.S. rank for first-time homebuyers.

How to navigate the homebuying process for the first time

Buying a home is never an easy process, especially when you’re doing it for the first time. Here are some tips to keep in mind as a first-time homebuyer:

• Run the numbers: Find out how much house you can afford by using a mortgage calculator and determining your income-to-mortgage ratio.
• Qualify for a mortgage: Lenders will take into account your credit score, debt-to-income ratio, the type of property and your income and assets before approving you for a mortgage.
• Check the fees: It takes more than a mortgage to buy a home. Make sure you’ve run the numbers on loan origination fees, closing costs, inspection fees and insurance.
• Look into first-time homebuyer programs: The Federal Housing Administration, the U.S. Department of Agriculture and the U.S. Department of Veterans Affairs all offer first-time homeowner loans and programs that you may qualify for.
• Save for home maintenance: As a homeowner, you’re now responsible for repairing or replacing everything that breaks. Make sure you have some extra money in the bank in case the furnace goes out or the fridge is on the fritz.

Methodology

To determine the best cities for first-time homebuyers, the ConsumerAffairs Research Team compared the 150 most populous cities across 11 weighted metrics in three categories. For each metric, the city that performed the best was given the highest possible score, with others earning relative scores. We added the category scores together to get overall scores out of a maximum of 100 points.

• Affordability (40 points): This category includes an affordability ratio of median home price to median income (14), median sale price (13) and the total monthly payment with 20% down (13). Data is from the U.S. Census Bureau (2023) and Zillow (2024).
• Market strength (40 points): This category includes the home appreciation rate from 2023 to 2024 (14), the median number of days a home stays on the market (13) and the percentage of millennial and Gen Z homeowners within the city's total homeowner population (13). Data is from the U.S. Census Bureau (2023) and Zillow (2024).
• Quality of life (20 points): This category includes the annual violent crime rate per 1,000 people (6), the annual property crime rate per 1,000 people (6), the unemployment rate (4), the percentage of the population living within a 10-minute walk of a green space (2) and walkability (Walk Score) (2). Data is from NeighborhoodScout (2023), the U.S. Census Bureau (2023) and NYU Langone Health (2024).

For questions about the data or if you'd like to set up an interview, please contact acurls@consumeraffairs.com.

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