WalletHub study ranks best and worst cities for first-time home buyers in 2026
A new report released July 14 by personal-finance company WalletHub ranks the best and worst cities for first-time home buyers in 2026, highlighting significant differences in affordability and living conditions across 300 U.S. cities. The study arrives as only 21% of home purchases last year were made by first-time buyers, a sharp decline from the historical average of 40%.
WalletHub analyzed cities using 22 key metrics, including housing affordability, real-estate tax rates, and crime rates. According to the report, the top five cities for first-time home buyers are Palm Bay, Florida; Surprise, Arizona; Gilbert, Arizona; Tampa, Florida; and Yuma, Arizona. The bottom five are Glendale, California; San Mateo, California; Los Angeles, California; Costa Mesa, California; and San Francisco, California.
"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. 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," according to Chip Lupo, WalletHub Analyst. Lupo also said, "Palm Bay, FL, is the best city for first-time home buyers. It’s among the leading cities in the country when it comes to active home listings per capita and new building permits per capita. Palm Bay has the fourth-highest millennial home-ownership rate and the fourth-highest home appreciation rate in the country. Home-buyers will also benefit from Palm Bay’s low property-crime rate."
The study found that Flint, Michigan, offers the most affordable housing, with a median house price divided by median annual household income that is 9.8 times cheaper than Santa Barbara, California, which ranks as the least affordable. Honolulu has the lowest real-estate tax rate, nine times lower than Paterson, New Jersey, which has the highest. Flint also has the highest rent-to-price ratio, 12.5 times higher than Santa Monica, California, which has the lowest. Baton Rouge, Louisiana, was identified as having the lowest total home-energy cost per month, 4.8 times lower than Honolulu, the city with the highest, according to WalletHub.
Additional resources and full city rankings are available on WalletHub’s website. The report also includes expert commentary and further analysis on property taxes, real-estate markets, and rental conditions.