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Best Housing Markets for First-Time Homebuyers – 2025 Study

Byline profile imageWritten by Jaclyn DeJohn, CFP®
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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 has 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 rates of homes for sale. Cape Coral, ranking second overall for first-time homebuyers despite a population that skews older, 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 the top 10 for this metric are the Jacksonville, Lakeland and Tampa metros.

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 study examined 180 metro areas for which data was available. Metro areas are ranked based of 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: US Census Bureau 1 year ACS 2023

    Questions about this study? Contact us at press@smartasset.com

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