Top 10 Best Markets for First-Time Homebuyers in 2025 Revealed

2025's Best Markets for First-Time Homebuyers

As we step into 2025, the quest for home ownership remains a top priority for many, especially first-time buyers. According to Realtor.com's latest report, the Mid-Atlantic region and Florida are emerging as prime destinations for those beginning their homeownership journey. With Harrisburg, Pennsylvania, leading the pack, here’s a closer look at the top ten markets where affordable prices and strong local economies create a conducive environment for new homeowners.

Ranking the Best

The report ranks Harrisburg as the number one city for first-time buyers, followed closely by Rochester, New York, and Villas, Florida. The complete list is as follows:
1. Harrisburg, PA
2. Rochester, NY
3. Villas, FL
4. Lauderdale Lakes, FL
5. Altamonte Springs, FL
6. Lansing, MI
7. North Little Rock, AR
8. Baltimore, MD
9. Tonawanda, NY
10. Wilmington, DE

Each city was evaluated on key criteria such as affordability, local economic strength, and the availability of family-friendly amenities, making them suitable choices for various lifestyles.

Economic Landscape

Despite challenges from elevated home prices and mortgage rates exceeding 6%, economic forecasts for these regions remain optimistic. The report highlights that last year marked a historic low in activity from first-time buyers, whom constituted just 24% of overall home purchases. Nonetheless, an upsurge in available properties could present a favorable shift for buyers, offering them a broader selection.

Economist Danielle Hale noted, "The highlighted markets provide viable options for those entering the housing sector, balancing cost with location quality. However, trade-offs are inevitable depending on individual family needs."

Affordability Matters

With rising living costs, affordability remains critical. Realtor.com® defines an affordable home as one costing no more than 30% of a buyer's income. All ten markets feature median listing prices significantly below the national average of $416,880, indicating a range of opportunities for budget-conscious buyers. For instance, Harrisburg’s average home price is approximately $140,000, while Villas has a median of $236,950 - about $180,000 less than the national median.

Thriving Communities

Beyond affordability, the appeal of each market includes diverse community attributes. Harrisburg and North Little Rock offer convenient access to major employment hubs, while Rochester, Lansing, and Baltimore provide proximity to educational institutions and healthcare facilities. Such locations are crucial for first-time buyers considering job security when taking on a mortgage.

Additionally, whether you're a young professional seeking nightlife or a family in need of daycare services, these cities cater to varied preferences yet manage to prioritize essential amenities for first-time buyers, ensuring a well-rounded lifestyle.

Return on Investment Potential

As home purchasing is a staggering financial commitment, understanding the return on investment (ROI) is paramount for many buyers. Forecasts indicate price growth in these top markets outpacing the national projection of 3.7%. Notably, Florida markets such as Altamonte Springs (expected growth of 12.1%) and Villas (9.6%) are anticipated to follow suit, heralding a substantial return on investment.

Selection Methodology

Realtor.com® commissioned rigorous assessments to identify these markets, focusing on locations expecting a population of at least 5,000 with a minimum of 500 available homes. Data on housing inventory, local median prices, and household income were extracted from relevant Census surveys, supplemented by forecasts from trusted sources like Moody's Analytics.

Conclusion

For prospective first-time homebuyers, 2025 brings hope with ideal markets that promise both affordability and investment potential. With informed choices and a clear understanding of needs versus offerings, embarking on such an essential journey can be both exciting and rewarding. Realtor.com® continues to guide buyers toward making informed housing decisions, ensuring everyone finds their way home.