America’s Best Places for First-Time Homebuyers

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Updated · 5 min read
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Co-written by Daniel Tonkovich

Buying your first house is a major milestone, replete with tough choices, mountains of paperwork and a mortgage that may follow you into retirement. While price and location are important during your home search, there’s much more to consider. That’s why we looked at data in three categories — affordability, livability and price stability — to find the best places for first-time homebuyers nationwide.

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NerdWallet’s analysis

For this report, NerdWallet analyzed the most recent data from the U.S. Census Bureau’s American Community Survey, online data provider NeighborhoodScout, and Down Payment Resource for the 448 largest places in the U.S. by population. Down Payment Resource’s data allowed us to assess the availability of homeownership assistance programs, which can help cash-short first-time homebuyers. To see our detailed methodology, click here.

If you’re considering buying a home, try NerdWallet’s mortgage calculator to see how much you can afford in specific U.S. locations.

Key takeaways

  • Suburbs dominate: No large cities made the top 10 list, which is composed of suburbs or small cities within major metroplexes. These areas stand out because they’re close to the amenities and jobs of a big city, often with a more affordable and quieter lifestyle. Household incomes also tend to be much higher than the national median (which was $56,516 as of 2015) in these suburbs.

  • Size counts: There may be a sweet spot for population when it comes to the top places for first-time buyers. Five of our top 10 cities have populations between 83,000 and 89,000.

  • Look beyond the coasts. States like Indiana and Texas dominate the list because they have affordable housing, good schools and plenty of jobs. Folks starting out can build a solid financial foundation in these states because they don’t have to devote an outsized portion of their paychecks to housing.

Mortgage loans from our partners

NBKC - PURCHASE logo
Check Rate

on NBKC

NBKC

4.5

NerdWallet rating 
NBKC - PURCHASE logo

4.5

NerdWallet rating 
Min. credit score 
620

Min. down payment 
3%

Check Rate

on NBKC

New American Funding - PURCHASE logo
Check Rate

on New American Funding

New American Funding

4.5

NerdWallet rating 
New American Funding - PURCHASE logo

4.5

NerdWallet rating 
Min. credit score 
500

Min. down payment 
3.5%

Check Rate

on New American Funding

GO Mortgage - PURCHASE logo
Check Rate

on GO Mortgage

GO Mortgage

4.0

NerdWallet rating 
GO Mortgage - PURCHASE logo

4.0

NerdWallet rating 
Min. credit score 
620

Min. down payment 
3%

Check Rate

on GO Mortgage

Mortgage loans from our partners

NBKC - PURCHASE logo
Check Rate

on NBKC

NBKC

4.5

NerdWallet rating 
NBKC - PURCHASE logo

4.5

NerdWallet rating 
Min. credit score 
620

Min. down payment 
3%

Check Rate

on NBKC

New American Funding - PURCHASE logo
Check Rate

on New American Funding

New American Funding

4.5

NerdWallet rating 
New American Funding - PURCHASE logo

4.5

NerdWallet rating 
Min. credit score 
500

Min. down payment 
3.5%

Check Rate

on New American Funding

GO Mortgage - PURCHASE logo
Check Rate

on GO Mortgage

GO Mortgage

4.0

NerdWallet rating 
GO Mortgage - PURCHASE logo

4.0

NerdWallet rating 
Min. credit score 
620

Min. down payment 
3%

Check Rate

on GO Mortgage

Rocket Mortgage - PURCHASE logo
Check Rate

on Rocket Mortgage

Rocket Mortgage

4.5

NerdWallet rating 
Rocket Mortgage - PURCHASE logo

4.5

NerdWallet rating 
Min. credit score 
580

Min. down payment 
3.5%

Check Rate

on Rocket Mortgage

Veterans United - PURCHASE logo
Check Rate

on Veterans United

Veterans United

5.0

NerdWallet rating 
Veterans United - PURCHASE logo

5.0

NerdWallet rating 
Min. credit score 
620