Top 10 Housing Markets for First-Time Homebuyers in 2026

Realtor.com has compiled a list of the top 10 housing markets in the US for first-time homebuyers in 2026. The firm screened more than 10,000 Census-designated places in the largest 100 metro areas to identify cities with at least 500 active home listings.

Rankings were based on several factors, with affordability weighted as the most important. Other criteria included housing availability, the presence of a community of young people, and average commute times. Rochester, New York, ranked first on the list.

The report highlights challenges in the current market, where the median US home price is approximately $410,800 and 30-year mortgage rates are around 6.15%. Despite these hurdles, specific cities offer better opportunities for entry-level buyers.

First-time homebuyers face a challenging environment characterized by high prices and elevated interest rates. According to recent data, the median sales price of a home in the United States hovered around $410,800 in the second quarter of last year, which is close to a record high.

Financing a home purchase has also become more expensive. The 30-year mortgage rate was recorded at approximately 6.15% in the final week of 2025. This figure remains elevated compared to levels seen over the last decade, particularly during the pandemic when rates fell below 3%.

These economic conditions have made affordability one of the largest barriers for Americans attempting to enter the housing market. However, Realtor.com's analysis suggests that certain markets remain accessible to those looking to buy for the first time.

To determine the best markets, Realtor.com conducted a comprehensive screening process. The firm analyzed more than 10,000 Census-designated places across the country's 100 largest metro areas.

Only cities that met specific criteria were considered for the final ranking. The primary requirements included:

• At least 500 active home listings in the last year.
• High scores in affordability, weighted as the most critical factor.
• Significant housing availability and inventory levels.
• A notable community of young people (ages 25 to 34).
• Reasonable average commute times.

This methodology ensures that the listed cities offer not just low prices, but a livable environment for new homeowners.

The ranking identifies ten cities where first-time buyers might have the most luck finding a home. Rochester, New York, took the top spot, offering a median listing price of $139,900 and an estimated 21.3% of households consisting of young homeowners.

Following Rochester is Harrisburg, Pennsylvania, with a median listing price of $151,999 and an average commute of 23 minutes. Granite City, Illinois, ranks third with the lowest median price on the list at $119,000.

Other cities in the top five include:

• Birmingham, Alabama ($148,950 median price)
• North Little Rock, Arkansas ($170,000 median price)

The list continues with Syracuse, New York ($169,900), Baltimore, Maryland ($223,900), St. Louis Park, Minnesota ($375,000), Pittsburgh, Pennsylvania ($249,000), and Garfield Heights, Ohio ($140,000).

Inventory levels vary across these locations. For example, Baltimore offers 52.6 available units per 1,000 households, while Syracuse offers 21.0.

When evaluating these markets, specific data points provide insight into the daily life of a homeowner. The median listing price is a primary indicator of entry costs, ranging from $119,000 in Granite City to $375,000 in St. Louis Park.

Commute times are also a crucial factor. The shortest average commute is found in Syracuse, NY, at just 20 minutes. The longest commute on the list is in Baltimore, MD, at 31 minutes.

Additionally, the concentration of young homeowners suggests a vibrant community for new buyers. St. Louis Park, MN leads in this category with 25.2% of households aged 25 to 34, while Garfield Heights, OH has the lowest share at 12.4%.