The best markets for first-time homebuyers in 2026 revealed
Fresh off a year marked by affordability challenges, first-time homebuyers enter 2026 still braving high prices and mortgage rates, but knowing where to buy can make all the difference.
A new report from Realtor.com® economists identifies the 10 best markets for first-time homebuyers in 2026, based on affordability, housing availability, local amenities (retailers, restaurants and daycares), economic health and overall housing market strength. Other important factors are commuting times and the presence of other young people in the community.
“Buying a house is expensive and difficult, something you will probably only do a few times, and doing it for the first time can set you up for success later,” says Realtor.com senior economist Joel Berner. “So choosing where to buy your first home is an essential first step toward building wealth and achieving your desired lifestyle.”
This is especially important considering that last year the share of first-time homebuyers fell to a record low 21%, while their typical age rose to a record high of 40, according to the National Association of Realtors®. 2025 Profile of home buyers and sellers.
First-time buyers face many hurdles: they are often earlier in their careers, earn less than older buyers and miss the benefit of existing equity when purchasing a starter home.
Three of the four US regions are well represented in the rankings, led by four markets in the Northeast and three in the Midwest and South. However, the West is noticeably absent for the second year in a row.
“Housing prices in the West are higher without proportionately higher incomes, and because the housing stock for sale has recovered more strongly since the [COVID-19] pandemic in that region, the prospects for a strong increase in house prices are more muted,” Berner explains.
“Our top ten markets for first-time homebuyers are all in the eastern half of the country, and with the exception of Baltimore, far from the East Coast.”
All of the cities on this year’s list have an average list price below the national median of $415,000 for November 2025 and below the median for their metropolitan area.
“Overall, these are affordable parts of affordable metro areas where relatively high incomes make purchasing a first home a reality for younger community members,” Berner says.
As a rule of thumb, a home is considered affordable if the monthly mortgage payment is 30% or less of the buyer’s monthly income. At median prices and median incomes for 25- to 34-year-olds in the 10 ranked markets, assuming a mortgage rate of 6.25% on a 30-year mortgage with a 10% down payment, this is the share of income a buyer would spend on a home with a median list price.
Four of the housing markets in the 2026 rankings also featured in last year’s report, underscoring their continued appeal to first-time homebuyers.
Rochester, NY, tops the list this year, unseating 2025 leader Harrisburg, PA – now in second place – thanks to its budget-friendly home prices, strong income-based affordability, and short average commute times.
The ranking also includes cities in Illinois, Alabama, Arkansas, Maryland, Minnesota and Ohio.
“It’s a commonly held belief that to find an affordable home, first-time buyers should scour the suburbs and outlying areas of a metropolitan area,” says Berner. “Our list of top markets proves this is not true: six of the ten places highlighted represent the main city itself, in addition to the metro.”
Notably, the three Florida markets that made the rankings last year – Villas, Lauderdale Lakes and Altamonte Springs – have dropped out of the top 10 for 2026, largely due to lower price and home sales forecasts for their metro areas.
What makes Rochester a top market for first-time buyers?
Home to the University of Rochester and headquarters to major employers like Rochester Regional Health, Wegmans, Xerox and Paychex, Rochester has the second-lowest average list price in the rankings, at just $139,900.
The affordable hub in New York State also has a relatively low price-to-income ratio, with the typical listed home costing 2.9 times the average salary of $48,617 for 25- to 34-year-olds.
Other advantages of Rochester over the other cities on the list include the shortest average commute time of just 21 minutes, and the strongest forecast sales growth for 2026 of 5.3%.
In addition, the city of Rochester offers a Home purchase assistance programwhich provides grants of up to $8,000 for closing cost assistance to income-eligible first-time buyers.
As a result of these conditions, 21.3% of Rochester homeowners are expected to be between the ages of 25 and 34 this year.
“We have everything here: change of seasons, affordable housing, jobs, great schools and hospitals, lakes, outdoor activities,” Jeff Scofieldbroker and partner Re/Max Plus in Rochestertells Realtor.com.
Compared to some of the larger markets, Rochester offers a lower cost of living and less traffic, he adds. But the factor that most attracts young first-time buyers to the local market is simple: “It’s still affordable to buy a home.”
The broker says many of its entry-level out-of-town buyers are medical residents at one of Rochester’s hospitals.
Singles entering Rochester’s housing market for the first time tend toward apartments and townhomes, while young couples and families prefer single-family homes, Scofield said.
The No. 1 must-have for first-time buyers, the agent says, is to have some money left over after closing to cover any unexpected expenses.
“Murphy’s law will dictate that something will go wrong,” says Scofield.
Other notable destinations for first-time buyers
Harrisburg, PA, last year’s leader, ranks second in the 2026 rankings, with an average list price of $151,999. It is followed by Granite City, IL, a highly rated Midwest entry with the lowest home price at just $119,000.
Located a short drive from St. Louis, MO, Granite City has an average list price that is nearly 60% lower than that metro’s median.
A typical 25- to 34-year-old buyer earning about $62,000 would spend just 12.6% of their income on monthly mortgage payments – the lowest share among the ten cities listed – making Granite City the most affordable market in the rankings, with a price-to-income ratio of just 1.9.
Birmingham, AL, is number 4 on the list, with a median home price of $148,950, followed by North Little Rock AR, at $170,000.
North Little Rock is located in the metro area of Little Rock, AR, which stands out for having the lowest projected unemployment rate in 2026 of 3.8% among the 10 cities on the list.
Syracuse, NY, ranks sixth, with a projected price growth through 2026 of 12.4%, the highest in the rankings. Baltimore, St. Louis Park, MN, Pittsburgh and Garfield Heights, OH, round out the list.
A closer look at St. Louis Park
St. Louis Park, MN, located in a suburb of Minneapolis, ranks eighth on the list of top markets for first-time buyers in 2026, with the highest average list price of $375,000.
But Berner notes that the typical home in the suburb of 50,000 residents is still priced 10% lower than metro Minneapolis.
The typical 25- to 34-year-old homebuyer in St. Louis Park earns $98,000 – the highest annual salary on the rankings – but also spends the majority of their income on rent payments, more than 25%.
Consequently, St. Louis Park has the highest price-to-income ratio of 3.8 on the rankings, making it the least affordable market on the list.
However, Kerby Skuratchief agent with Re/Max resultssays St. Louis Park offers potential buyers a wide range of benefits compared to more expensive and hectic Minneapolis.
“St. Louis Park is kind of the best of both worlds,” Skurat tells Realtor.com. “You’re five to 10 minutes from downtown Minneapolis, but it still feels like a real neighborhood with parks, trails, coffee shops and a strong sense of community. It’s easy to get around, easy to live in, and it appeals to a wide range of people from young professionals to growing families because it’s convenient without feeling hectic.”
Skurat explains that St. Louis Park is one of the few places near the city where first-time buyers can still find a mix of condos, townhomes and smaller single-family homes at relatively pocket-friendly prices.
“Such people don’t have to choose between affordability, walkability and access to jobs,” the agent says. “St. Louis Park offers all three, making it a strong starter market.”
As a result, St. Louis Park has seen increasing interest from out-of-town buyers, especially those relocating for work or relocating from higher-end markets like Chicago, Denver and coastal metros to boost their housing budgets.
To arrive at the 2026 ranking of the best markets for first-time buyers, Realtor.com researchers scored 10,067 Census-Designated Places located within the 100 largest metropolitan areas in the US. They chose the 10 highest-ranked places with at least 500 active for-sale listings in the past twelve months.
The team rated each market based on the availability of homes for sale, average list price from December 2022 through November 2023, a higher percentage of younger homeowners, reasonable commute times, low unemployment rates, the amenities the communities offer, and forecast home sales and home prices in the coming year.
1. Rochester, NY
Median list price: $139,900
2. Harrisburg, PA
Median list price: $151,999
3. Granite City, IL
Median list price: $119,000
4. Birmingham, AL
Median list price: $148,950
5. North Little Rock, AR
Median list price: $170,000
6. Syracuse, NY
Median list price: $169,900
7. Baltimore, MD
Median list price: $223,900
8. St. Louis Park, Minnesota
Median list price: $375,000
9. Pittsburgh, PA
Median list price: $249,000
10. Garfield Heights, Ohio
Median list price: $140,000
