Fresh from a year marked by affordability challenges, first-time homebuyers enter 2026 braving higher home prices and mortgage rates, but knowing where to buy can make all the difference.
A new report from Realtor.com® economists identifies the top 10 markets for first-time home buyers in 2026, based on affordability, housing availability, local amenities (shopping, restaurants, and daycare centers), economic health, and overall housing market strength. Other important factors include commuting times and the presence of other young people in the community.
“Buying a home is expensive and difficult, something you only do a few times, and the first time you do it can set you up for success,” said Realtor.com’s chief economist. Joel Berner. So choosing where to buy your first home is an important first step in building wealth and achieving your desired lifestyle.”
That’s especially important considering that last year, the share of first-time homebuyers fell to a record low of 21%, while their average age rose to 40 years old, according to the National Association of Realtors®’ 2025 Profile of Home Buyers and Sellers.
First-time buyers face many obstacles: They tend to be earlier in their careers, earn less than older buyers, and lack the home equity advantage of buying a first home.
Three of the four US regions are well represented in the rankings, led by four markets in the Northeast and three each in the Midwest and South. The West, however, is notably absent for the second year in a row.
“Home prices in the West are high despite relatively high incomes, and as real estate sales have risen sharply since [COVID-19] epidemic in that region, the prospects for appreciation in house prices are greatly reduced,” explained Berner.
“Our top 10 markets for first-time buyers are all located in the eastern half of the country—and with the exception of Baltimore, they are far from the East Coast.”
All cities included in this year’s list have a median price below the national average of $415,000 in November 2025 and below the median for their metropolitan area.
“Overall, these are affordable parts of affordable metros where high incomes make buying a home a reality for younger members of the community,” Berner said.
As a rule of thumb, a home is considered affordable if the monthly mortgage payment is 30% or less of the buyer’s monthly income. For median prices and median incomes for 25- to 34-year-olds in the top ten markets, an estimated mortgage rate of 6.25% on a 30-year fixed-rate bond with a 10% down payment, this is the share of income a buyer can spend on a median-priced home.
Four 2026-rated housing markets also appeared in last year’s report, underscoring their continued appeal to first-time homebuyers.
Rochester, NY, tops this year’s list, dethroning 2025 leader Harrisburg, PA—now in second place—due to its budget-friendly home prices, strong income-based affordability, and short commutes.
This state also includes cities in Illinois, Alabama, Arkansas, Maryland, Minnesota, and Ohio.
“It’s a common belief that in order to find an affordable home, first-time buyers should search the suburbs and suburbs,” Berner said. “Our list of top markets proves this to be untrue, with six of the 10 areas highlighted representing a major city worthy of its metro.”
Notably, three Florida markets featured in last year’s ranking—Villas, Lauderdale Lakes, and Altamonte Springs—dropped out of the top 10 in 2026, largely due to lower prices and forecasted home sales in their metros.
What makes Rochester a first-rate market?
Home to the University of Rochester and the headquarters of major employers such as Rochester Regional Health, Wegmans, Xerox, and Paychex, Rochester boasts the second-lowest median rental price, at just $139,900.
Upstate New York’s affordability center also has the lowest median income, with the average home listed for 2.9 times the median income of $48,617 for 25- to 34-year-olds.
Other advantages of Rochester compared to other cities on the list include a shorter average commute time of just 21 minutes, and the strongest predicted sales growth by 2026 of 5.3%.
In addition, the city of Rochester offers a Home Purchase Assistance Program, which provides grants of up to $8,000 in closing cost assistance to first-time home buyers who qualify for financing.
As a result, 21.3% of Rochester homeowners are expected to be between the ages of 25 and 34 this year.
“We have everything here: changing seasons, affordable housing, jobs, good schools and hospitals, lakes, outdoor activities,” Jeff Scofieldbroker and partner at Re/Max Plus in Rochester, tells Realtor.com.
Compared to other major markets, Rochester offers a lower cost of living and less traffic, he adds. But the biggest draw for new first-time buyers to the local market is simple: “It’s still affordable to buy a home.”
The seller says many of his out-of-town customers are medical residents at one of Rochester’s hospitals.
Single adults entering the Rochester housing market for the first time gravitate toward condos and townhouses, while young couples and families prefer single-family homes, according to Scofield.
The No. 1 must-have for first-time buyers, says the seller, is having cash left over after closing to cover any unexpected expenses.
“Murphy’s law will tell you that something is wrong,” said Scofield.
Some outstanding areas for first-time buyers
Harrisburg, PA, last year’s leader, came in second in the 2026 ranking, with a median list price of $151,999. It’s followed by Granite City, IL, an upscale Midwestern entry point that boasts a low home price of just $119,000.
Located a short drive from St. Louis, MO, Granite City has a median listing price that is about 60% lower than the metro median.
The average 25- to 34-year-old homebuyer earning about $62,000 can spend just 12.6% of their income on monthly mortgage payments—the lowest share of the 10 cities included—making Granite City the most affordable market on average, with an income ratio of just 1.9.
Birmingham, AL, is number 4 on the list, with a median home price of $148,950, followed by North Little Rock AR, at $170,000.
North Little Rock is located within the Little Rock, AR, metro, which stands out for having the lowest 2026 unemployment rate of 3.8% among the 10 cities on the list.
Syracuse, NY, ranked sixth, with a projected 2026 metro price growth of 12.4%, the highest in the ranking. Baltimore, St. Louis Park, MN, Pittsburgh, and Garfield Heights, OH, complete the list.
Looking closely at St. Louis Park
Located in the suburbs of Minneapolis, St. Louis Park, MN, sits eighth on the 2026 list of the best markets for first-time home buyers, with the highest median list price of $375,000.
But Berner notes that the average home in a neighborhood of 50,000 is still priced 10% lower than downtown Minneapolis.
The average 25- to 34-year-old consumer in St. Louis Park earns $98,000—the highest annual salary on average—but he also spends a large portion of his income on mortgage payments, more than 25%.
As a result, St. Louis Park has the highest average income ratio of 3.8, making it the least expensive market on the list.
However, Kerby Skuratlead agent with Re/Max Results, says St. Louis Park offers a variety of advantages for those looking to buy relative to the price and the busyness of Minneapolis.
“St. Louis Park is kind of the best of both worlds,” Skurat tells Realtor.com. “You’re five to 10 minutes from downtown Minneapolis, but it still feels like a real place with parks, trails, coffee shops, and a strong sense of community. It’s easy to walk around, easy to live in, and it appeals to a lot of people, from young professionals to growing families, because it’s easy without feeling busy.”
Skurat explains that St. Louis Park is one of the few areas close to the city where first-time buyers can still find a mix of condos, townhomes, and small single-family homes at pocketbook-friendly prices.
“Such people don’t have to choose between affordability, being able to travel, and finding jobs,” said the agent. “St. Louis Park offers all three, making it a strong market for a first home.”
Because of this, St. Louis Park has drawn growing interest from out-of-town buyers, especially those relocating for work or from more expensive markets like Chicago, Denver, and coastal metros to stretch their housing dollars.
To come up with the 2026 ranking of the best markets for first-time buyers, Realtor.com researchers found 10,067 Census-Designated Areas located within the 100 largest US metropolitan areas and selected the top ten that had at least 500 listings for sale in the past 12 months.
The team scored each market based on real estate availability, median home listing price from December 2022 to November 2023, large percentage of young homeowners, reasonable commute times, low unemployment rates, community amenities, and predicted home sales and home prices for the coming year.
1. Rochester, NY
Median list price: $139,900
2. Harrisburg, PA
Median list price: $151,999
3. Granite City, IL
Median list price: $119,000
4. Birmingham, AL
Median list price: $148,950
5. North Little Rock, AR
Median list price: $170,000
6. Syracuse, NY
Median list price: $169,900
7. Baltimore, MD
Median list price: $223,900
8. St. Louis Park, MN
Median list price: $375,000
9. Pittsburgh, PA
Median list price: $249,000
10. Garfield Heights, OH
Median list price: $140,000
