Although the housing market is still challenging for first-time buyers, things are getting better in several regions of the nation. Some metro areas stand out for providing renters with a more practical route to homeownership, even though affordability is still a significant obstacle, according to recent Zillow home trends data.
Zillow ranked the biggest housing markets in the country according to the factors that are most important to households attempting to purchase their first home: rents taking up a smaller portion of a household budget, affordable homes making up a larger share of listings, and less competition for attainable homes from other buyers in order to determine where first-time buyers have the best chance.
Top 10 Best Markets for First-Time Homebuyers in 2026:
| Metro area | Rent Burden: Share of median household income spent on typical rent | Affordable listings for median-income household (February 2026)* | Affordable listings per 100 renter households | Share of population ages 29–43 |
| Jacksonville, FL | 23.1% | 47.8% | 5.9 | 36.3% |
| Birmingham, AL | 21.1% | 55.6% | 6.2 | 32.9% |
| San Antonio | 20.2% | 47.4% | 4.5 | 36.4% |
| Atlanta | 22.3% | 45.2% | 4.3 | 37.4% |
| Houston | 22.7% | 40.2% | 3.1 | 39.7% |
| St. Louis | 19.5% | 67.7% | 3.6 | 33.3% |
| Detroit | 21.8% | 64.8% | 4.2 | 32.8% |
| Raleigh, NC | 18.4% | 48.0% | 2.7 | 35.9% |
| Baltimore | 21.5% | 61.8% | 3.0 | 34.5% |
| Louisville, KY | 20.9% | 54.1% | 3.8 | 33.8% |
Note: *A listing is considered affordable if the monthly mortgage payment (including estimates for taxes, maintenance and insurance) would take up no more than 30% of median household income, assuming a 20% down payment.
Top-Ranked Metros for First-Time Buyers — 2026
No. 1: Jacksonville, FL
- Home-buying-age households as a share of total households: 36%
- Percentage of median household income spent on rent: 23%
- Affordable listings as a share of total for-sale inventory: 48%
- Affordable listings-to-renter household ratio: 5.9 per 100 renters
No. 2: Birmingham
- Affordable listings-to-renter household ratio: 6.2 per 100 renters
- Home-buying-age households as a share of total households: 33%
- Percentage of median household income spent on rent: 21%
- Affordable listings as a share of total for-sale inventory: 56%
No. 3: San Antonio
- Home-buying-age households as a share of total households: 36%
- Percentage of median household income spent on rent: 20%
- Affordable listings as a share of total for-sale inventory: 47%
- Affordable listings-to-renter household ratio: 4.5 per 100 renters
No. 4: Atlanta
- Home-buying-age households as a share of total households: 37%
- Percentage of median household income spent on rent: 22%
- Affordable listings as a share of total for-sale inventory: 45%
- Affordable listings-to-renter household ratio: 4.3 per 100 renters
No. 5: Houston
- Home-buying-age households as a share of total households: 40%
- Percentage of median household income spent on rent: 23%
- Affordable listings as a share of total for-sale inventory: 40%
- Affordable listings-to-renter household ratio: 3.1 per 100 renters
The Sun Belt and Midwest comprise the majority of Zillow’s top 10 markets for first-time buyers in 2026. These markets typically provide a better combination of accessible inventory, reasonable rent, and less competition for purchasers on a tight budget. Because inventory conditions have improved and buyers now have more options, a number of Sun Belt metro areas rank highly. In the meantime, a number of Midwest metro areas continue to stand out due to the fact that home values are still comparatively affordable when compared to earnings, which keeps more listings within the grasp of first-time buyers.
In general, the top-ranked markets do not do very well on a single metric, according to the report. Rather, they offer a number of benefits simultaneously, including a reasonable rent burden, a sizable portion of reasonably priced listings, and an adequate supply to ease the strain on entry-level purchasers.
