First-time home buyer havens
First-time home buyers will be looking for the best spots to settle down this year.
Lack of for sale options and affordability have made it hard for this group, but some cities offer better opportunities for new buyers.
See which housing markets scored the highest and made Realtor.com’s top 10 list for 2025 first-time home buyers.
Check your home buying options. Start hereTop cities for first-time home buyers in 2025
First-time home buyers have faced a rough road of low affordability, high competition, and a dearth of starter houses on the market.
This group — mostly made up of millennials and gen Z — bears the brunt of the current housing crisis as the median U.S. home price grew 44.1% or $130,694 in five years, from $296,485 in December 2019 to $427,179 in December 2024, according to Redfin. That’s a lot of avocado toast.
“Last year saw historically low activity for first-timers, with the group accounting for only 24% of successful home buyers,” said Danielle Hale, chief economist at Realtor.com. “While home prices remain high and mortgage rates are forecasted to stay above 6% throughout 2025, the year is expected to see more inventory hit the market – a silver lining for shoppers who will see more or less choice depending on where they are.”
Some cities provide softer paths to homeownership for first-time buyers in 2025. The best housing markets for new buyers have approachable prices, desirable amenities, and forecasted growth above the national average to help returns on investment, according to Realtor.com.
To determine the top spots, Realtor.com analyzed 3,579 U.S. housing markets with populations above 5,000 and at least 500 active for-sale listings in the past 12 months. The scoring accounts for a combination of age demographics, affordability, and livability.
“The places highlighted offer opportunities for first timers in terms of the cost of housing, availability of homes for sale, and quality of the location,” Hale said. “Even in these high-opportunity areas, tradeoffs likely need to be considered for buyers to get to the closing table. Choosing the best place will come down to what’s most important to each buyer and their family, and our list of places, and their qualities, is a good guide.”
Below are the top 10 first-time home buyer housing markets for 2025, according to Realtor.com. Median listing price and inventory are as of the 12 months ending November 2024. The full table of ranking criteria can be found after the city list.
10. Wilmington, Delaware
Median listing price: $222,000
Inventory per 1,000 households: 41.3
2024 first-time home buyer location score: 9.7/10
2025 forecasted 25-to-34-year-old share of households: 18.4%
2025 forecasted metro price growth: 6.1%
9. Tonawanda, New York
Median listing price: $229,900
Inventory per 1,000 households: 30.2
2024 first-time home buyer location score: 8.1/10
2025 forecasted 25-to-34-year-old share of households: 14.2%
2025 forecasted metro price growth: 8.5%
8. Baltimore, Maryland
Median listing price: $210,000
Inventory per 1,000 households: 51.6
2024 first-time home buyer location score: 8.6/10
2025 forecasted 25-to-34-year-old share of households: 19.9%
2025 forecasted metro price growth: 2.7%
7. North Little Rock, Arkansas
Median listing price: $160,000
Inventory per 1,000 households: 38.5
2024 first-time home buyer location score: 5.7/10
2025 forecasted 25-to-34-year-old share of households: 17.6%
2025 forecasted metro price growth: 4.8%
6. Lansing, Michigan
Median listing price: $135,000
Inventory per 1,000 households: 42.3
2024 first-time home buyer location score: 6.8/10
2025 forecasted 25-to-34-year-old share of households: 21.4%
2025 forecasted metro price growth: 4.9%
5. Altamonte Springs, Florida
Median listing price: $229,400
Inventory per 1,000 households: 46.8
2024 first-time home buyer location score: 7.2/10
2025 forecasted 25-to-34-year-old share of households: 19.4%
2025 forecasted metro price growth: 12.1%
4. Lauderdale Lakes, Florida
Median listing price: $154,850
Inventory per 1,000 households: 72.4
2024 first-time home buyer location score: 7.7/10
2025 forecasted 25-to-34-year-old share of households: 11.2%
2025 forecasted metro price growth: 9%
3. Villas, Florida
Median listing price: $236,950
Inventory per 1,000 households: 85.6
2024 first-time home buyer location score: 8/10
2025 forecasted 25-to-34-year-old share of households: 14.1%
2025 forecasted metro price growth: 9.6%
2. Rochester, New York
Median listing price: $129,900
Inventory per 1,000 households: 21.2
2024 first-time home buyer location score: 9.2/10
2025 forecasted 25-to-34-year-old share of households: 22.3%
2025 forecasted metro price growth: 6.8%
1. Harrisburg, Pennsylvania
Median listing price: $140,000
Inventory per 1,000 households: 34.8
2024 first-time home buyer location score: 9.2/10
2025 forecasted 25-to-34-year-old share of households: 20.6%
2025 forecasted metro price growth: 5.1%
The table below shows the full scope of criteria for each city:
| Rank | Place Name | Median Listing Price* | Inventory per 1,000 Households* | Price to Income Ratio* | 2024 First-Time Home Buyer Location Score (out of 10) | 2025 Forecasted 25- to 34-Year-Old Homeowner Share of Households | 2025 Forecasted Average Minutes to Work | 2025 Metro Forecasted Price Growth | 2025 Metro Forecasted Sales Growth | 2025 Forecasted Metro Unemployment Rate |
| 1 | Harrisburg, PA | $140,000 | 34.8 | 2.6 | 9.2 | 20.6% | 22 | 5.1% | 16.8% | 3.5% |
| 2 | Rochester, NY | $129,900 | 21.2 | 2.5 | 9.2 | 22.3% | 21 | 6.8% | 8.7% | 3.5% |
| 3 | Villas, FL | $236,950 | 85.6 | 3.4 | 8 | 14.1% | 26 | 9.6% | 13.2% | 4.0% |
| 4 | Lauderdale Lakes, FL | $154,850 | 72.4 | 2.7 | 7.7 | 11.2% | 32 | 9.0% | 24.0% | 3.5% |
| 5 | Altamonte Springs, FL | $229,400 | 46.8 | 3.6 | 7.2 | 19.4% | 28 | 12.1% | 15.2% | 3.8% |
| 6 | Lansing, MI | $135,000 | 42.3 | 2.6 | 6.8 | 21.4% | 21 | 4.9% | 10.3% | 3.9% |
| 7 | North Little Rock, AR | $160,000 | 38.5 | 3.3 | 5.7 | 17.6% | 22 | 4.8% | 18.6% | 3.3% |
| 8 | Baltimore, MD | $210,000 | 51.6 | 3.3 | 8.6 | 19.9% | 32 | 2.7% | 16.2% | 4.2% |
| 9 | Tonawanda, NY | $229,900 | 30.2 | 2.9 | 8.1 | 14.2% | 22 | 8.5% | 9.7% | 3.9% |
| 10 | Wilmington, DE | $222,000 | 41.3 | 4.1 | 9.7 | 18.4% | 25 | 6.1% | 12.3% | 4.0% |
The bottom line
With purchase activity expected to heat up in 2025, many first-time home buyers will be looking for the right place to land.
Be in front of the competition by preparing yourself, shopping your mortgage rate and learning to negotiate. Also, qualifying for financial aid can boost your homebuying profile.
If you’re ready to start your journey to homeownership, talk to a local lender today.
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