The 10 Best Markets for First-Time Homebuyers Are all Up-and-Coming Cities
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If one of your goals for 2025 is to buy a home, don’t let a turbulent market deter you. Despite the uncertainty of a new Presidential administration, high interest rates, and record-low inventories, there are pockets of the country with thriving housing markets. The team at Realtor.com has revealed their predictions for the ten hottest real estate markets for first-time home buyers. They looked at a broad range of factors including median home price, average commute distance, inventory, and percent of income the mortgage will cost, and concluded that these up-and-coming metropolitan areas are ideal for new homeowners.
“Last year saw historically low activity for first-timers, with the group accounting for only 24 percent of successful homebuyers. While home prices remain high and mortgage rates are forecasted to stay above 6 percent throughout 2025, the year is expected to see more inventory hit the market—a silver lining for shoppers,” says Danielle Hale, chief economist at Realtor.com.
From upstate New York to suburban Florida, the best places to buy a home in 2025 are as wide and as varied as our dream home wishlists. These locations feature budding communities, proximity to job hubs, and a reasonable cost of living. So whether you’re looking for more square footage, better schools, a shorter commute to work—or all of the above—read on to discover the ten hottest cities to buy in for first-time home buyers below.
Wilmington, Delaware
Median Listing Price: $222,000
First-Time Homebuyer Location Score: 9.7
The largest city in Delaware, Wilmington is located in the northern half of the state, between the Delaware and Christina rivers. Only 37 minutes from Philadelphia, Wilmington is home to both commuters and local workers alike. Because of its rich history, you can find a great mix of historic homes and new builds.
Tonawanda, New York
Median Listing Price: $229,000
First-Time Homebuyer Location Score: 8.1
Just East of Niagra Falls, Tonawanda is a mid-size town in Erie County. Part of the Buffalo-Niagra metropolitan area, this town is largely home to commuters but boasts a robust community of small and local businesses. Ideal for nature lovers, Tonawanda boasts easy access to trails and nature walks. According to the Realtor.com team, the average commute time here is just 22 minutes, and the price-to-income ratio—how much of their income people in the area spend on housing—is a healthy 4.1.
Baltimore, Maryland
Median Listing Price: $210,000
First-Time Homebuyer Location Score: 8.6
Maryland’s state capital is a great place for first-time homeowners who don’t want to abandon city life completely. With a bustling downtown and nightlife scene, Baltimore is ideal for those working in the DMV area. Here, the price-to-income ratio is lower, at just 3.3 with a location score of 8.6.
North Little Rock, Arkansas
Median Listing Price: $160,000
First-Time Homebuyer Location Score: 5.7
North Little Rock is just across the Arkansas River from the Arkansas state capitol, Little Rock. A smaller city, with a population of about 65,000 people, it's a place where you can relish in the South’s lower cost of living. While the average commute to work here is still 22 minutes, the median home price is far below the national average at only $160,000.
Lansing, Michigan
Median Listing Price: $135,000
First-Time Homebuyer Location Score: 6.8
Lansing is the capital city of Michigan and is an up-and-coming city thanks to its buzzing housing market. The area offers plenty of access to nature, and it’s also the home to the R.E. Olds Transportation Museum. According to Realtor.com, just over 20 percent of homes will be owned by 25 to 34-year-olds by the end of 2025, making this a great community for younger home buyers.
Altamonte Springs, Florida
Median Listing Price: $229,000
First-Time Homebuyer Location Score: 7.2
A suburban city north of Orlando, Altamonte Springs is a great place for new and growing families. Here, the price-to-income ratio is 3.6, and the average commute time is 28 minutes. Similar to other Southern cities, you’ll be able to get more square footage for your home budget. Central Florida homes are also less prone to flooding and hurricane damage than homes on the coast.
Lauderdale Lakes, Florida
Median Listing Price: $154,850
First-Time Homebuyer Location Score: 7.7
Part of the greater Miami metropolitan area in Broward County, Florida, Lauderdale Lakes is a quaint suburb with plenty of draws. It’s rare to find an average home cost under $200,000 this close to a major city, but Lauderdale Lakes’s housing market is booming. According to Realtor.com, that the price-to-income ratio is 2.7—one of the lowest on this list.
Villas, Florida
Median Listing Price: $236,950
First-Time Homebuyer Location Score: 8.0
An unincorporated town in Lee County, Florida, Villas is within the Cape Coral-Fort Myers, Florida Metropolitan Statistical Area. In close proximity to both the beach and the airport, this is a great community to buy in for those looking for a well-located yet secluded home. Because of the great location, home prices are a bit higher here, with a price-to-income ratio of 3.4.
Rochester, New York
Median Listing Price: $129,900
First-Time Homebuyer Location Score: 9.2
Rochester, New York boasts the highest number of predicted young homeowners (ages 24 to 35) on this list, at just over 22 percent. A buzzing metro area, Rochester is located on Lake Ontario and is home to the Strong National Museum of Play and The George Eastman Museum. Here, the median listing price is well below the national average at a mere $129,900.
Harrisburg, Pennsylvania
Median Listing Price: $140,000
First-Time Homebuyer Location Score: 9.2
The best real estate market for first-time home buyers, Harrisburg, Pennsylvania has it all. A great location score, low median home prices, and an easy average commute. Harrisburg is the capital of Pennsylvania and is located on the Susquehanna River. It's close to a number of natural parks and hiking trails, and is also the home of the National Civil War Museum. Harrisburg boasts a lower-than-average unemployment rate and a strong local economy.
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