For many American adults, buying a home for the first time is a key financial achievement, as well as a symbol of independence. However, the ability to achieve this milestone has changed over recent decades.
In 2024, only 24% of home purchases were made by first-time buyers, compared to 32% in 2023. This represented a historic low, as the average buyer age hit a record high.
Home buyers in general have many things to consider, but those going through the process for the first time are also forced to reevaluate their idea of a dream home. Instead, they must review market prices, interest rates and their eligibility to get a mortgage.
“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,” WalletHub analyst Chip Lupo said. “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.”
In a recent analysis, WalletHub compared 300 U.S. cities of varying sizes to determine which offer the best options for first-time home buyers. A total of 22 key measures were used, including cost of living, real-estate taxes and property-crime rate, within three categories: market attractiveness, affordability and quality of life.
How does your city and other Lone Star State cities appeal to first-time home buyers? Here’s what WalletHub found.
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Two Texas cities stood out in WalletHub’s categorical rankings. Austin claimed the No. 10 spot for its real-estate market, between Lakeland, Florida (No. 9) and Peoria, Arizona (No. 11). Amarillo had the third-lowest cost of living, only outranked by Flint, Michigan (No. 1) and Oklahoma City (No. 2).
Overall rank | City | Total score | Affordability rank | Real-estate market rank | Quality of life rank |
73 | McKinney | 55.29 | 247 | 19 | 47 |
98 | Frisco | 54.07 | 245 | 26 | 66 |
105 | Austin | 53.72 | 257 | 10 | 120 |
118 | Grand Prairie | 53.19 | 238 | 71 | 40 |
125 | Denton | 52.9 | 237 | 37 | 93 |
130 | Allen | 52.47 | 253 | 59 | 44 |
132 | Plano | 52.32 | 250 | 87 | 49 |
143 | Fort Worth | 51.87 | 228 | 28 | 164 |
156 | Amarillo | 50.96 | 189 | 98 | 116 |
159 | Carrollton | 50.47 | 230 | 81 | 80 |
162 | El Paso | 50.07 | 232 | 122 | 78 |
172 | Richardson | 49.61 | 235 | 92 | 95 |
176 | Garland | 49.35 | 234 | 101 | 122 |
185 | Corpus Christi | 48.16 | 212 | 78 | 202 |
186 | Arlington | 48.11 | 221 | 111 | 155 |
188 | San Antonio | 48 | 218 | 61 | 216 |
190 | Laredo | 47.92 | 215 | 121 | 145 |
201 | Irving | 47.27 | 233 | 105 | 172 |
214 | Mesquite | 46.47 | 223 | 132 | 160 |
237 | Dallas | 44.22 | 249 | 84 | 253 |
256 | Houston | 42.36 | 210 | 91 | 276 |
WalletHub also created separate lists based on city size. Here’s where Texas cities measured up: