10 Best and Worst Cities for First-Time Homebuyers
Written by
Marc Guberti
Edited by
Jenna Klaverweiden
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Buying your first home is one of the most important decisions you can make. A house in the right neighborhood can lead to a high quality of life while having reasonable monthly mortgage payments.
While some people prefer to buy homes in the same neighborhoods they have lived in for their entire lives, others are willing to branch out. Research from WalletHub recently unveiled the best and worst cities for first-time homebuyers.
The 10 Best Cities Overall
WalletHub’s top 10 cities feature many places in the Sunshine State. An additional two cities that made the list are in Arizona. These were the top cities based on the overall ranking.
- Palm Bay, Florida
- Boise, Idaho
- Tampa, Florida
- Surprise, Arizona
- Huntsville, Alabama
- Gilbert, Arizona
- Cape Coral, Florida
- Orlando, Florida
- Lakeland, Florida
- Sunrise, Florida
Homebuyers looking at Palm Bay will see average home values of $306,477, with 60.3% of sales under list price, per Zillow.
Top 10 Cities for Affordability
WalletHub also had a ranking system based on affordability. It gauged cities exclusively based on their affordability without regard for the quality of life that the cities offer. These were the top 10 cities based on that category.
- Montgomery, Alabama
- Flint, Michigan
- Akron, Ohio
- Toledo, Ohio
- Detroit, Michigan
- Davenport, Iowa
- Fort Wayne, Indiana
- Indianapolis, Indiana
- Cleveland, Ohio
- Cedar Rapids, Iowa
The top spot for affordability, Montgomery, has a cost of living that’s 21% below the national average, according to BestPlaces.
Although these cities were ranked as the most affordable, many of them had low quality of life rankings.
The 10 Worst Cities Overall
WalletHub didn’t only compile the best of the best, but it also reviewed 300 cities and revealed which ones are the worst for first-time homebuyers. These cities were ranked the worst.
- Berkeley, California
- Santa Monica, California
- Oakland, California
- San Francisco, California
- Santa Barbara, California
- Los Angeles, California
- Costa Mesa, California
- Anchorage, Alaska
- New Orleans, Louisiana
- San Mateo, California
California overrepresents on this list, making up eight of the 10 worst cities for first-time homebuyers. The top spot went to Berkeley, where the cost of living is 95.5% higher than the U.S. average, per BestPlaces.
Most of these Californian cities received low rankings when it came to the quality of life category as well.
The Worst 10 Cities for Affordability
As for the worst cities when it comes to affordability, there are some repeats on this list from the overall worst cities list.
- Santa Monica, California
- Santa Barbara, California
- Irvine, California
- Costa Mesa, California
- Berkeley, California
- Glendale, California
- Los Angeles, California
- Burbank, California
- Pasadena, California
- Westminster, California
Santa Monica sat in spot 300 for affordability. Residents of the city will experience a cost of living that’s 61.7% higher than the U.S. average, per BestPlaces.
While California has some of the most expensive homes, some of the California cities on this list are in the top 33% in the quality of life category. Irvine and Glendale are the two California cities that rank in the top 33% for the quality of life category.
Recapping the Results
The WalletHub study also included cities like New York, Cambridge and Austin. It’s good to keep that in mind since almost all of the cities in both rankings are from Florida, California or Arizona. The research found that the Californian cities were worse for affordability and overall rankings than those cities.Â
First-time homebuyers can use this information as a gauge when deciding where to buy a home. Knowing optimal locations can help you find a good deal in a promising neighborhood if you are okay with moving out of your hometown.
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