Best Cities for First-Time Homebuyers in 2024: Texas and Beyond
Buying a home marks a significant milestone for many Americans, symbolizing financial achievement and independence. However, the landscape of first-time homeownership is evolving, with fewer Americans stepping into the market as first-time buyers. In 2024, first-time buyers accounted for only 24% of home purchases, a historic low compared to 32% in 2023. This drop coincides with an increase in the average age of homebuyers, highlighting new challenges and considerations for those entering the market.
Challenges Facing First-Time Homebuyers in 2024
First-time homebuyers today face a daunting landscape:
- Rising Housing Prices: Home prices have surged, making affordability a major concern.
- Higher Interest Rates: Mortgage interest rates have risen sharply over recent years.
- Market Complexity: Buyers must navigate fluctuating market conditions, stricter mortgage eligibility requirements, and changing neighborhood dynamics.
"Buying a home for the first time is a very stressful and difficult process, especially when housing prices are through the roof and interest rates have risen sharply in the past few years," says Chip Lupo, WalletHub analyst. "The best cities for first-time home buyers not only are affordable both in terms of buying a house and living there afterward, but they also have a lot of housing choices as well as low crime rates and good schools."
To help first-time buyers identify the most favorable locations, WalletHub recently conducted a comprehensive analysis of 300 U.S. cities, evaluating them on 22 key metrics. These metrics fall into three essential categories:
- Market Attractiveness
- Affordability
- Quality of Life
You can explore WalletHub’s criteria and full report here.
Texas Cities Shine in WalletHub’s Rankings
Texas, a state known for its diverse real estate market and comparatively low cost of living, performed well in WalletHub’s evaluation. Two cities, in particular, scored prominently:
- Austin ranked 10th nationwide for its real estate market, positioned between Lakeland, Florida (No. 9) and Peoria, Arizona (No. 11).
- Amarillo scored as the third most affordable city to live in after Flint, Michigan, and Oklahoma City.
Other Texas cities displayed competitive rankings across affordability, real estate markets, and quality of life:
| City | Overall Rank | Affordability Rank | Real-Estate Market Rank | Quality of Life Rank |
|---|---|---|---|---|
| McKinney | 73 | 24 | 71 | 98 |
| Frisco | 79 | 24 | 52 | 66 |
| Grand Prairie | 105 | 23 | 87 | 140 |
| Denton | 125 | 37 | 79 | 31 |
| Allen | 130 | 25 | 35 | 44 |
| Plano | 132 | 25 | 8 | 49 |
| Fort Worth | 143 | 22 | 82 | 16 |
For more detailed insights on Texas real estate and living costs, visit the Texas Real Estate Research Center.
Rankings by City Size in Texas:
Large Cities:
- Austin (#19)
- Fort Worth (#27)
- El Paso (#31)
- Corpus Christi (#37)
- Arlington (#38)
- San Antonio (#39)
- Dallas (#51)
- Houston (#56)
Midsize Cities:
- McKinney (#27)
- Frisco (#37)
- Grand Prairie (#43)
- Plano (#47)
- Amarillo (#61)
- Garland (#68)
- Laredo (#73)
- Irving (#77)
Small Cities:
- Denton (#57)
- Allen (#59)
- Carrollton (#68)
- Richardson (#74)
- Mesquite (#86)
Top 10 Cities for First-Time Homebuyers Nationwide
Florida dominates the list of the best cities for first-time buyers, securing 6 out of the top 10 spots. Florida cities offer a strong real estate market and high quality of life, though affordability is often a challenge compared to other locations.
| Rank | City | State | Total Score | Affordability Rank | Real-Estate Market Rank | Quality of Life Rank |
|---|---|---|---|---|---|---|
| 1 | Palm Bay | Florida | 67.2 | 41 | 18 | 232 |
| 2 | Boise | Idaho | 64.7 | 36 | 18 | 273 |
| 3 | Tampa | Florida | 64.4 | 17 | 5 | 64 |
| 4 | Surprise | Arizona | 64.3 | 22 | 11 | 207 |
| 5 | Huntsville | Alabama | 63.7 | 36 | 35 | 436 |
| 6 | Gilbert | Arizona | 63.5 | 34 | 17 | 85 |
| 7 | Cape Coral | Florida | 63.4 | 14 | 54 | 208 |
| 8 | Orlando | Florida | 63.0 | 15 | 97 | 179 |
| 9 | Lakeland | Florida | 62.9 | 13 | 99 | 151 |
| 10 | Sunrise | Florida | 61.8 | 15 | 32 | 213 |
For a more complete list and additional data, see WalletHub’s complete rankings.
Tips for First-Time Homebuyers
Navigating the real estate market can be overwhelming. Here are practical tips for first-time buyers:
- Research Local Markets: Understand housing trends and average prices.
- Evaluate Affordability Beyond Price: Consider property taxes, insurance, utilities, and commute expenses.
- Check Mortgage Options: Different lenders offer various loan types and rates.
- Assess Quality of Life: Safety, schools, amenities, and community vibe matter.
- Get Professional Guidance: Work with real estate agents who specialize in first-time buyers.
For an in-depth guide, visit NerdWallet’s first-time homebuyer tips.
Conclusion
The dream of homeownership remains alive, but first-time buyers in 2024 face new complexities influenced by market dynamics and rising costs. Texas cities like Austin and Amarillo offer attractive opportunities, balancing affordability with quality of life. Florida continues to dominate the overall best cities for first-time homebuyers, especially due to its robust real estate markets and lifestyles.
Understanding the nuances of your target city, from costs to community factors, can empower you to make an informed and confident purchase. Utilize resources like WalletHub’s city rankings and first-time buyer guides to navigate today’s challenging but rewarding real estate market.
Explore more about first-time home buying and real estate market trends on trusted platforms such as Realtor.com and Zillow.