Buying a home has always been a big life moment. But today’s first-time buyers are facing one of the toughest housing markets in years. Sky-high prices, steep mortgage rates and intense competition make stepping onto the property ladder feel almost impossible.
Yet there’s still some good news. A new report from Realtor.com® reveals the best cities where first-time buyers can find homes that are affordable, packed with great amenities and full of potential
The Top Spot: Harrisburg, PA
Harrisburg, Pennsylvania, is the top pick for first-time homebuyers in 2025—and for good reason. The city combines affordable housing, solid job opportunities and a bright future for home values. Here’s why it stands out:
Affordable Housing: With a median home price of just $140,000, owning a home in Harrisburg can be cheaper than renting. A 7% mortgage rate and a 3.5% down payment bring monthly payments to under $1,300, less than the cost of many two-bedroom apartments in the area.
Strong Job Market: Harrisburg offers stable job opportunities thanks to big employers like Hershey Foods, Amazon and Penn State Hershey Medical Center. Its central location between Philadelphia and Baltimore also boosts industries like logistics and healthcare.
Starter-Friendly Homes: The city’s plentiful row houses make great starter homes, helping buyers build equity faster. Local agents often advise first-time buyers to see their first home as a stepping stone to something bigger down the line.
Buying a home in Harrisburg can be easier than renting, says Chris Timmons, a local real estate broker. FHA loans with flexible credit requirements make buying more accessible than passing a landlord’s rental screening.
For first-time buyers looking for affordability and opportunity, Harrisburg checks all the boxes.
Other Promising Cities for First-Time Buyers
Harrisburg may top the list, but other cities also offer exciting opportunities. Here’s a closer look:
Rochester, NY
Median Home Price: $129,900
Rochester features the lowest home prices in the top 10 and a favorable price-to-income ratio. Its Home Purchase Assistance Program offers up to $6,000 in grants for eligible buyers.
Florida Cities
- Villas, FL (Median Price: $236,950)
- Lauderdale Lakes, FL (Median Price: $154,850)
- Altamonte Springs, FL (Median Price: $229,400)
Florida cities provide a mix of affordability and strong home price growth. These areas are popular for their warm climate and proximity to booming metro hubs.
Lansing, MI
Median Home Price: $135,000
Home to Michigan State University and a General Motors plant, Lansing has reliable employment opportunities and a low cost of living.
North Little Rock, AR
Median Home Price: $160,000
This twin city of Little Rock shares economic advantages while offering lower housing costs.
Baltimore, MD
Median Home Price: $210,000
Baltimore combines urban amenities with relatively affordable housing for a large metro area.
Tonawanda, NY
Median Home Price: $229,900
Wilmington, DE
Median Home Price: $222,000
What Makes Those Cities Stand Out?
Each city on the list balances affordability with opportunity. The report considers factors like job availability, local amenities and future growth potential. These cities also provide first-time buyers with access to affordable starter homes that are often cheaper than renting.
Challenges for First-Time Homebuyers
Buying your first home isn’t easy in today’s market. First-time buyers face big hurdles:
- Record-High Prices: Homes are more expensive than ever.
- High Mortgage Rates: With rates over 6%, borrowing is pricier.
- No Equity to Lean On: Unlike repeat buyers, first-timers don’t have the financial boost of selling a previous home.
In 2024, only 24% of homebuyers were first-timers—the lowest ever recorded. Yet in select cities homeownership is still within reach.
A Brighter Outlook for 2025
While challenges persist, the housing market is shifting in favor of buyers:
- More Homes for Sale: Inventory is at its highest in four years, reducing competition.
- Price Adjustments: Slower price growth and more discounts are giving buyers a chance to negotiate.
Realtor.com’s Chief Economist, Danielle Hale, says that 2025 offers hope with more options and fewer bidding wars, though it’s still a tough market.
Where Opportunity Awaits
For first-time buyers, 2025 won’t be a walk in the park. But in cities like Harrisburg, Rochester and Lansing, the dream of homeownership feels closer. These cities offer affordability, solid job markets and a chance to invest in your future.
Also Read: 15 U.S. Cities With The Best Quality Of Life, Ranked
