In 2025, Florida and the Mid-Atlantic are the greatest locations for first-time homebuyers to begin their road toward home ownership. Harrisburg, Pennsylvania, was ranked as the top city in the 2025 Realtor.com Best Markets for First-Time Homebuyers report, followed by Rochester, New York; Villas, Florida; Lauderdale Lakes, Florida; Altamonte Springs, Florida; Lansing, Michigan; North Little Rock, Arkansas; Baltimore; Tonawanda, New York; and Wilmington, Delaware.
“Last year saw historically low activity for first-timers, with the group accounting for only 24% of successful homebuyers,” said Danielle Hale, Chief Economist, Realtor.com. “While home prices remain high and mortgage rates are forecasted to stay above 6% throughout 2025, the year is expected to see more inventory hit the market – a silver lining for shoppers who will see more or less choice depending on where they are. “The places highlighted offer opportunities for first timers in terms of the cost of housing, availability of homes for sale, and quality of the location. Even in these high-opportunity areas, tradeoffs likely need to be considered for buyers to get to the closing table. Choosing the best place will come down to what’s most important to each buyer and their family, and our list of places, and their qualities, is a good guide.”
Top 10 Best Markets for First-Time Homebuyers in 2025:
| Rank | Place Name | Region | 2025 Forecasted 25-34 Year Old Homeowner Share of Households | 12 Month Ending November 2024 Inventory per 1000 Household | 12 Month Ending November 2024 Median Listing Price | 12 Month Ending November 2024 Price to Income Ratio | 2025 Forecasted Average Travel Time to Work (Minutes) | 2024 First-Time Homebuyer Location Score (out of 10) |
| 1 | Harrisburg, PA | Northeast | 20.6 % | 34.8 | $140,000 | 2.6 | 22 | 9.2 |
| 2 | Rochester, NY | Northeast | 22.3 % | 21.2 | $129,900 | 2.5 | 21 | 9.2 |
| 3 | Villas, FL | South | 14.1 % | 85.6 | $236,950 | 3.4 | 26 | 8.0 |
| 4 | Lauderdale Lakes, FL | South | 11.2 % | 72.4 | $154,850 | 2.7 | 32 | 7.7 |
| 5 | Altamonte Springs, FL | South | 19.4 % | 46.8 | $229,400 | 3.6 | 28 | 7.2 |
| 6 | Lansing, MI | Midwest | 21.4 % | 42.3 | $135,000 | 2.6 | 21 | 6.8 |
| 7 | North Little Rock, AR | South | 17.6 % | 38.5 | $160,000 | 3.3 | 22 | 5.7 |
| 8 | Baltimore | South | 19.9 % | 51.6 | $210,000 | 3.3 | 32 | 8.6 |
| 9 | Tonawanda, NY | Northeast | 14.2 % | 30.2 | $229,900 | 2.9 | 22 | 8.1 |
| 10 | Wilmington, DE | South | 18.4 % | 41.3 | $222,000 | 4.1 | 25 | 9.7 |
The goal of first-time homebuyers is to make an investment in a house they are comfortable and pleased to own. The top markets, according to Realtor.com’s annual report, scored relatively high on criteria that are significant to people beginning their home ownership journey, such as reasonably priced listings, robust local economies, vibrant areas that are also excellent for expanding families, and chances for a return on investment.
Will Homes Become Affordable?
First-time buyers are trying to find a property that makes financial sense at a time when national asking rents have been declining year over year for 16 consecutive months. Generally speaking, a home is considered “affordable” if the monthly rent or buyer’s expenses equal 30% or less of their monthly income. From 15.2% of Rochester’s potential homebuyers’ income to 24.8% in Wilmington, this guideline is applicable in all ten of the top markets. Furthermore, the median listing price in each of the top ten markets is significantly lower than the $416,880 national median. Villas, Florida is really the most costly market, with a typical listing price of $236,950, which is slightly about $180,000 below the national median.
Maintaining mortgage payments necessitates gainful job because it’s one of the largest expenditures many people will make in their lifetime. In 2025, unemployment rates in each of the top 10 markets are predicted to be below the national average. The markets are also near important employment centers, such as hospitals and academic institutions (as in Rochester, Lansing, and Baltimore) and state capitols (as in Harrisburg and North Little Rock). Philadelphia, a significant metropolis, is even accessible by car from Wilmington.
The top markets for first-time homeowners this year offer choices for every stage of a first-time homebuyer’s life. childcare centers for expanding families. Nightlife for parents in need of a night out and adults without children. Top-quality goods and shopping for everyone. Despite having their own advantages and disadvantages in every category, each market has above-average location scores. For instance, while Lansing and North Little Rock score highly on family-friendliness, they may not offer many excellent options for foodies, shopaholics, and bar hoppers. Additionally, daycares are less common in the Florida markets of Villas and Altamonte Springs, but they are expected to see significant price growth.
The return on investment (ROI) of a home purchase is a significant financial investment and a means of accumulating home equity. This is particularly true for first-time homebuyers who are making their first investment at a period of high mortgage rates and listing prices. Although price growth is predicted to exceed the national average of 3.7% in all ten locations included in this year’s top 10, the three Florida markets—Altamonte Springs (12.1%), Villas (9.6%), and Lauderdale Lakes (9%), are anticipated to have the most increases.
To read the full report, including more data, charts, and methodology, click here.
