#United States #Columbia #Peoria #Neighbors Bank #First-Time Homebuyers

Neighbors Bank Unveils Best Cities for First-Time Homebuyers in 2026

As aspiring homeowners seek refuge from soaring prices in coastal cities, Neighbors Bank has released its eagerly anticipated analysis of the best cities for first-time homebuyers in 2026. This thorough examination highlights 10 U.S. cities where affordability meets quality of life, making homeownership accessible to many.

Key Findings
The analysis focuses on urban areas with populations exceeding 115,000, where the total monthly housing costs are kept at or under 35% of the area’s median household income. Neighbors Bank meticulously evaluated various quality-of-life indicators, including job stability, commute times, childcare expenses, crime rates, and entertainment options, in addition to housing affordability.

Top Cities Overview
Among the findings, mid-sized metropolitan areas in the Midwest and Great Lakes regions emerged prominently, showcasing a blend of affordability, job stability, and enhanced living standards. Here are the top ten cities, along with their vital statistics:
1. Peoria, IL
- Median Home Price: $161,868
- Monthly Housing Cost: $1,492
- Housing Cost Percentage: 25%
- Rich in riverfront attractions, Peoria pairs low living costs with high quality of life while offering accessible healthcare and educational job opportunities.

2. Fort Wayne, IN
- Median Home Price: $246,963
- Monthly Housing Cost: $1,880
- Housing Cost Percentage: 33%
- This city boasts a revitalized downtown and a diversified economy, aided by steady job growth in healthcare and manufacturing sectors.

3. Pittsburgh, PA
- Median Home Price: $221,503
- Monthly Housing Cost: $1,762
- Housing Cost Percentage: 29%
- Known for its rich history and vibrant arts scene, Pittsburgh blends urban excitement with affordability in housing and lifestyle.

4. South Bend, IN
- Median Home Price: $221,658
- Monthly Housing Cost: $1,738
- Housing Cost Percentage: 32%
- With its cultural vibrancy rooted in the University of Notre Dame, South Bend offers a mix of college-town energy and urban revitalization.

5. Davenport, IA
- Median Home Price: $183,689
- Monthly Housing Cost: $1,680
- Housing Cost Percentage: 28%
- A picturesque riverfront city, Davenport presents affordable housing along with cultural and recreational opportunities.

6. Rockford, IL
- Median Home Price: $206,734
- Monthly Housing Cost: $1,891
- Housing Cost Percentage: 34%
- Rockford is notable for its recent growth in home prices, showcasing cultural landmarks and a thriving job market.

7. Wichita, KS
- Median Home Price: $214,523
- Monthly Housing Cost: $1,939
- Housing Cost Percentage: 34%
- Boasting a vibrant cultural scene, Wichita offers reasonable living expenses and steady demand for housing.

8. Toledo, OH
- Median Home Price: $194,680
- Monthly Housing Cost: $1,605
- Housing Cost Percentage: 30%
- Toledo combines affordable housing with ample recreational options and a diverse job market.

9. Lansing, MI
- Median Home Price: $238,495
- Monthly Housing Cost: $2,000
- Housing Cost Percentage: 34%
- Lansing’s blend of government jobs and educational institutions helps sustain its housing market while providing quality living standards.

10. Wichita Falls, TX
- Median Home Price: $169,458
- Monthly Housing Cost: $1,666
- Housing Cost Percentage: 31%
- Known for low entry costs and manageable commuting distances, Wichita Falls offers a robust job market anchored by notable employers.

Conclusion
Jake Vehige, president of mortgage lending at Neighbors Bank, emphasizes, “These markets are not only affordable but also offer first-time buyers the opportunity to achieve financial stability and build equity.” The 2026 list serves as a beacon for anyone looking to enter the housing market without the burden of overwhelming costs associated with coastal living.

For detailed city-by-city insights and a complete breakdown of the methodology used, check the full report available at Neighbors Bank.

About Neighbors Bank
Founded in Clarence, Missouri, and operating in Columbia, Missouri, Neighbors Bank specializes in making homeownership achievable through affordable mortgage solutions. Reporting over $813 million in mortgage loans in 2025 puts them as a leading entity in the housing finance sector.